(Bloomberg) -- California Governor Gavin Newsom on Wednesday reiterated his threat for a state takeover of PG&E Corp. if the bankrupt utility falls short in the changes he wants.
At an event in Sacramento, Newsom said his administration has laid out “detailed terms” on what a takeover would look like and is working on it with legislative leaders in case it's needed. The San Francisco-based company faces a June deadline to exit court protection to be able to tap a state fund for fire damages, and Newsom has raised concerns about its bankruptcy plan.
See also: PG&E Says It Can Resolve Newsom's Concerns Over Bankruptcy Plan
“It has to to be completely reimagined, completely transformed company,” Newsom said at the Public Policy Institute of California event, which came on the one-year anniversary of the utility's bankruptcy filing. “If PG&E can't do it, we'll do it for them.”
Still, the state is making progress in talks with the company, Newsom told reporters after the event. “We are meeting with PG&E on a daily basis,” he said. “We are making progress on governance. We are making progress on finance.”
If a deal can't be reached within the next few weeks, Newsom will lay out a detailed plan for a takeover, he said.
--With assistance from Mark Chediak and Emily Dooley.
To contact the reporter on this story: Romy Varghese in San Francisco at rvarghese8@bloomberg.net
To contact the editors responsible for this story: Elizabeth Campbell at ecampbell14@bloomberg.net, Joe Ryan
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