California Enacts PG&E Takeover Law in Case Something Goes Wrong

California Governor Gavin Newsom signed legislation late Tuesday that would allow the state to take over PG&E Corp. if the utility giant falls short of safety standards -- including recklessly causing another catastrophic wildfire.

The bill, authored by State Senator Jerry Hill, would set up a nonprofit public benefit corporation called Golden State Energy that would serve PG&E’s existing customers if the company is stripped of its operating license.

PG&E was pushed into bankruptcy in January 2019, claiming $30 billion in estimated liabilities from wildfires sparked by its electrical equipment. Those blazes included the Camp Fire, the deadliest in ...