PG&E shakes up board of directors as California utility prepares for life after bankruptcy
PG&E Corp. overhauled its board of directors Wednesday in a housecleaning that it said fulfills its pledge to reinvent the troubled utility as its prepares to exit bankruptcy.
The company will replace 10 of its 13 board members. The turnover, which will take place once PG&E completes its bankruptcy case, is “a critical component of PG&E’s plan to emerge from bankruptcy as a re-imagined utility — one that is in touch with its customers and communities and is safe, reliable, financially stable, and capable of helping California meet its energy goals,” said current board chair Nora Mead Brownell.
Brownell is among those leaving the board. Three are staying, and 11 new members are joining as the board grows by one to a total of 14.
Among the new directors are Craig Fugate, who served as the head of the Federal Emergency Management Agency under President Barack Obama; Ben Wilson, a Washington, D.C., lawyer who helped the U.S. government monitor Volkswagen’s behavior after a massive air-pollution scandal; and Arno Harris, a green-energy guru. Also joining is Jessica Denecour, a veteran high-tech executive with cybersecurity experience.
PG&E was driven into bankruptcy in January 2019 by a string of disastrous wildfires, including the Camp Fire in Paradise two months earlier, the deadliest in California history.
Gov. Gavin Newsom sparred with PG&E over its bankruptcy reorganization plan for months, complaining at one point that it was stocking its board with executives beholden to Wall Street. Newsom finally gave his blessing after becoming persuaded the company was sincere about revamping its leadership and putting a greater emphasis on public safety.
His spokesman Nathan Click said Newsom approves of the new directors.
“The state required that the company’s new board of directors be independent of Wall Street hedge funds, primarily comprised of Californians, with deep expertise on safety and operational change. The board that was announced today meets the state’s requirements,” Click said by email. Six of the 11 newcomers are from California.
The overhaul of the board came two days after PG&E said it’s leaving its longtime San Francisco headquarters for Oakland, a move that will save money and is designed to further its efforts at a corporate makeover.
PG&E’s bankruptcy plan has also won approval from the California Public Utilities Commission. Tens of thousands of wildfire victims voted in favor of PG&E’s plan, which calls for a $13.5 billion fund to pay uninsured fire damages.
The company is still waiting for U.S. Bankruptcy Judge Dennis Montali Jr. to confirm the plan. He must give the OK by June 30 or PG&E won’t be eligible, under state law, to participate in a $21 billion state-run insurance fund designed to shield California’s largest utilities from the liabilities of future wildfires. The fund is financed by shareholders and ratepayers, not taxpayers.
This story was originally published June 10, 2020 at 3:44 PM.