A battle between a large group of PG&E Corp. shareholders and some of the company’s biggest creditors over control of the bankrupt utility giant is bleeding into California politics.

PG&E and some of its biggest stakeholders are lobbying state lawmakers in Sacramento for a bill that would allow the company to securitize its profits -- a move that would aid a restructuring plan they’re pitching in bankruptcy court. Some major creditors including Pacific Investment Management Co. and Elliott Management Corp., however, have come up with their own plan to reorganize PG&E’s finances and are pressing legislators just as hard to...