Wiener's bill, which comes one year into PG&E's bankruptcy case, would use eminent domain to force the company's stockholders to sell their shares to the state of California, which would then take over operations. Wiener said the new entity could issue bonds to pay for it.

"PG&E is a failed company — it is an irresponsibly run company," Wiener, a San Francisco Democrat, said in an interview. "It has allowed its infrastructure to completely deteriorate to the point that it is causing wildfire ... It has just allowed its system to spiral out of control."

He said PG&E has proven "over and over again" that it does not deserve its monopoly status and that by making it public and instituting new leadership, the state could make a stronger, safer and more reliable system.

"[The monopoly] is a privilege granted by the state of California. PG&E has forfeited that privilege," he said. "It is more beholden to Wall Street and the shareholders than maintaining its system and providing safe and reliable service. "