PG&E CEO To Retire, Utility’s Wildfire-Linked Bankruptcy Nears Its Close

Palo Alto Daily News (CA)

Apr. 22--PG&E Chief Executive Officer William "Bill" Johnson will retire on June 30, the target date for the company to emerge from a $51.69 billion bankruptcy linked to the series of catastrophic wildfires caused by the disgraced utility.

Johnson came on board PG&E about a year ago, taking on the role of chief executive officer and president of the PG&E parent company that owns utility operator Pacific Gas and Electric.

"I joined PG&E to help get the company out of bankruptcy and stabilize operations," Johnson said Wednesday in a prepared release. "By the end of June, I expect that both of these goals will have been met."

PG&E filed for a Chapter 11 bankruptcy in January 2019 in a quest to reorganize its shattered finances, which had buckled beneath a rising mountain of debts and wildfire-linked liabilities.

The company's equipment caused lethal wildfires in 2015 in Amador County and Calaveras County, in 2017 in the North Bay Wine Country and nearby regions, and in 2018 in Butte County.

Johnson will be succeeded by interim CEO William "Bill" Smith, a member of PG&E's board and a retired president of AT&T Technology Operations and AT&T Services.

PG&E must emerge from bankruptcy by June 30 or it won't be able to qualify for a wildfire insurance fund established by state legislation. If PG&E can't take money from that fund, its financial structure won't be viable.

The powerful state Public Utilities Commission is scheduled to make a decision on PG&E's plan to extricate itself from bankruptcy on May 21.

U.S. Bankruptcy Judge Dennis Montali, who has shepherded PG&E's bankruptcy case through the court, also must approve the company's plan.

The plan, hammered out after extensive negotiations with an often critical Gov. Gavin Newsom as well as the PUC, includes new controls designed to prevent repeats of the company's blunders that have triggered fatal infernos, crippling blackouts, and sky-high electricity bills.

On May 26, PG&E is scheduled to plead guilty to 84 counts of involuntary manslaughter for the 2018 fatal inferno that scorched Butte County and destroyed the town of Paradise. On May 27, the bankruptcy court is scheduled to confirm the bankruptcy plan.

Among the major concerns that linger: PG&E is expected to emerge from bankruptcy while burdened with $35 billion in debts.

Johnson is a former CEO of the Tennessee Valley Authority.

"We were fortunate to have Bill Johnson's experience and steady presence for the past year as he shepherded the company through multiple challenges," said Nora Mead Brownell, chair of PG&E's board of directors.

___

Visit the Palo Alto Daily News (Menlo Park, Calif.) at www.paloaltodailynews.com

Distributed by Tribune Content Agency, LLC.