California regulators have waded into a fight over whether PG&E Corp. can cancel or renegotiate renewable energy contracts while in bankruptcy.

The general counsel for the California Public Utilities Commission said the utility owner needs the agency’s permission to back out of any wind and solar deals. Doing so would “interfere with the state’s clean energy goals,” Arocles Aguilar said March 5 during testimony at a California senate committee hearing.

PG&E, which filed for Chapter 11 in January, has asked...