Senator Scott Weiner stated that the bill involves taking over Pacific Gas & Electric and its large power line network, which is taking the blame for starting wildfires that have caused damage estimated to cost billions of dollars. Weiner publicly said:
“PG&E is a failed utility with a track record of prioritizing profits over safety. It’s time for a new start.”
Only last year the utility business filed for bankruptcy and is still trying to deal with the claims for damages put in by victims of the wildfire. Along with government agencies and insurers, the total claims amount to a bill of more than $25 billion. PG&E has until 30th June to come out of bankruptcy and take part in an insurance fund that lawmakers have created.
The bill is the first step in the public takeover. In order to be successful, the State Power Authority would have to buy up all of PG&E’s shares with the company’s assets being valued at $85 billion. When that is done, the Legislature will create the Northern California Energy Utility District which will serves cities such as San Rafael.
Local governments will be allowed to purchase the PG&E’s equipment and use it start their own utility companies. Brochure printing could be used to advertise a new company that is starting up.