Newsom has said the regulator’s problems are
in the past after his appointment of a new head
of the CPUC. He’s been deeply critical of PG&E,
saying the utility “as we know it cannot persist
and continue.” He’s pushed the company to work
through issues and get out of bankruptcy by
next summer, even threatening a takeover.
PG&E’s chief executive has resisted the more
ambitious restructuring proposals.
“I think the way it is structured now is the best
idea for the majority of customers,” Johnson told
reporters after Newsom called him to the Capitol
this month.
Kris Mayes, Arizona’s former top utility regulator
who now leads the Utility of the Future
Center at Arizona State University, said PG&E
should be broken into two or three more
manageable entities, and California should
shift to “performance-based regulation” that
rewards utilities for things like safety, reliability,
customer service or the amount of renewable
energy. Utilities now are awarded a fixed
profit on their investments. The need for long-
distance transmission lines could be reduced by
conserving energy and generating and storing
more of it locally, she said.
“The utilities have been rewarded over decades
for building big stuff, including these power
lines that are now causing fires,” Mayes said.
Whatever route PG&E goes, it still faces
extensive debt for its existing infrastructure
and stiff liabilities from starting the two
deadliest and most destructive wildfires on
Image: Jeff Chiu