(Bloomberg) -- PG&E Corp. said it would replace most of its board as part of a broad overhaul of its governance structure as the California power giant pushes to exit bankruptcy.
PG&E said only three of the 14 current directors will remain after the company exits Chapter 11 by mid-year, according to a statement Friday. The utility's chair, Nora Mead Brownell, will be among the departing directors, the company confirmed in an e-mail.
PG&E had promised to shake-up its leadership and bring in new safety experts as part of number of reforms that were pledged to win the approval of California Governor Gavin Newsom of its reorganization plan.
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Last week, PG&E said that Chief Executive Officer Bill Johnson will retire at the end of June. The company will appoint William Smith, a former AT&T executive and one of the three PG&E board members who will remain, as interim CEO until a replacement is found.
PG&E is racing to win court and regulatory approval of its turnaround proposal ahead of a state deadline of June 30 so it can participate in a state wildfire fund that will help cover liabilities from future wildfires. The company said Friday that it was on track to meet that goal.
The San Francisco-based company filed for Chapter 11 in January 2019 with an estimated $30 billion in liabilities from deadly wildfires blamed on its equipment.
PG&E announced the board shakeup as part of its first-quarter earnings release. The company said it expects costs from its bankruptcy and other wildfire-related matters to range from $2.1 billion to $2.3 billion for the year.
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