SACRAMENTO (KRON) — “We can either be backed into a corner and forced to sign on to a deal coming from a group of creditors or we can take a firm hand in this.”
State Senator Jerry Hill wants lawmakers to get directly involved in PG&E’s bankruptcy.
He presented SB549 for the first time Wednesday, the measure would require the public utilities commission to get approval from the legislature before allowing PG&E to raise customer rates during its bankruptcy process.
“None of us want PG&E to emerge from this bankruptcy unchanged, we want a safer, more reliable and affordable utility that is responsive to California’s needs,” said Hill. “That’s why our voice is so critical in this process.”
Energy and Utilities Committee Chairman. Sen. Ben Hueso (D-San Diego) noted the Public Utility Commission is already expected to represent the state’s interests in court.
“I think it’s a redundancy that’s not necessary because it’s already built into the process,” Hueso said. “Nonetheless it’s a very special circumstance, I think it deserves a conversation, it deserves a debate.”
Wednesday’s hearing comes after a bankruptcy judge allowed PG&E to pay out $250 million in bonuses, while the utility also requested the PUC approve rate increases resulting in an average of $22 a month for each household beginning next year.
A bankruptcy law expert warned lawmakers they may not have as much leverage in the process if they don’t get involved soon.
“Right now you aren’t at the bargaining table directly, so it’ll be very easy for all the parties at the table to come up with a plan of organization that comes in the form of liability relief or a rate increase, and that may come back to this committee a year from now,” said UC Hastings Law Professor Jared Ellias.
The measure passed Wednesday and moves forward to another senate committee.
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