Governor Skeptical About California’s Desire to Assume Control of PG&E
California Governor Gavin Newsom has expressed skepticism about the state’s willingness to take over PG&E Corp., a utility company that has faced significant criticism for recent blackouts affecting San Francisco. During a Bloomberg News event in San Francisco, Newsom stated, “I’m not convinced” that the state is interested in entering the utility business.
Newsom’s comments come in the wake of renewed discussions regarding PG&E’s management. The governor had previously considered a potential takeover during negotiations related to the company’s restructuring after it filed for bankruptcy in 2019, primarily due to billions of dollars in wildfire liability claims. Recently, some San Francisco officials have revived calls for the city to take control of PG&E’s infrastructure, including its wires and poles, following power outages that disrupted neighborhoods over the holiday season. Additionally, gubernatorial candidate and billionaire Tom Steyer has advocated for breaking up the state’s utility monopolies, which have significantly raised rates.
Governor Newsom pointed out that the state already possesses the authority to take control of PG&E if the utility fails to comply with safety and regulatory standards. This provision was part of the agreement during PG&E’s exit from bankruptcy. He also highlighted that the company’s executive compensation is now linked to safety performance metrics, indicating a shift in corporate governance.
Related: PG&E Investing $73B in Capital Spending Through 2030 to Harden System
“PG&E is a very different company than it was prior to bankruptcy,” Newsom remarked, emphasizing the changes implemented to enhance safety and reliability.
Top photo: Gavin Newsom, governor of California, during an interview in San Francisco, California, on Thursday, Jan. 29, 2026. Photographer: David Paul Morris/Bloomberg.
Copyright 2026 Bloomberg.
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California Governor Gavin Newsom has expressed skepticism about the state’s willingness to take over PG&E Corp., a utility company that has faced significant criticism for recent blackouts affecting San Francisco. During a Bloomberg News event in San Francisco, Newsom stated, “I’m not convinced” that the state is interested in entering the utility business.
Newsom’s comments come in the wake of renewed discussions regarding PG&E’s management. The governor had previously considered a potential takeover during negotiations related to the company’s restructuring after it filed for bankruptcy in 2019, primarily due to billions of dollars in wildfire liability claims. Recently, some San Francisco officials have revived calls for the city to take control of PG&E’s infrastructure, including its wires and poles, following power outages that disrupted neighborhoods over the holiday season. Additionally, gubernatorial candidate and billionaire Tom Steyer has advocated for breaking up the state’s utility monopolies, which have significantly raised rates.
Governor Newsom pointed out that the state already possesses the authority to take control of PG&E if the utility fails to comply with safety and regulatory standards. This provision was part of the agreement during PG&E’s exit from bankruptcy. He also highlighted that the company’s executive compensation is now linked to safety performance metrics, indicating a shift in corporate governance.
Related: PG&E Investing $73B in Capital Spending Through 2030 to Harden System
“PG&E is a very different company than it was prior to bankruptcy,” Newsom remarked, emphasizing the changes implemented to enhance safety and reliability.
Top photo: Gavin Newsom, governor of California, during an interview in San Francisco, California, on Thursday, Jan. 29, 2026. Photographer: David Paul Morris/Bloomberg.
Copyright 2026 Bloomberg.
Topics
California
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