Dive Brief:
- PG&E shares spiked more than 30% Tuesday on news that U.S. Bankruptcy Judge Dennis Montali had appointed a mediator to parse competing bankruptcy reorganization plans.
- Due to "favorable weather conditions" the utility was able to reduce the scope of an ongoing Public Safety Power Shutoff (PSPS) by 30,000 customers, but more than a half million accounts in 22 counties were still impacted, according to a Wednesday morning tweet.
- PG&E will also provide refunds to customers impacted by a PSPS Oct. 9 through Oct. 13, with the utility criticized for failures of communication and response.
Dive Insight:
There is no indication the power shutoffs will stop in the near term as the utility struggles to keep its system safe.
California Gov. Gavin Newsom, D, had pressed for $100 refunds for residential customers and called the decision "the least they can do."
"It doesn't take a decade to fix this. Their years of mismanagement are over," Newsom said in a Tuesday afternoon tweet.
PG&E shares plunged last week on fears its system could be linked to the Kincade fire, but rebounded Tuesday. The utility said it "looks forward to working with the mediator and the other parties to resolve the remaining wildfire claims," in a statement.
Montali on Monday appointed retired judge Randall Newsome to mediate between rival factions looking to control the utility.
PG&E said it has made significant progress in its Chapter 11 cases, including reaching settlements with two of three major groups of wildfire claimants, potentially extending the date a claim must be made from Oct. 21 into January.
"We are confident our court-approved claims notification process was broad and thorough — above and beyond what is typical in a Chapter 11 process," PG&E told Utility Dive. "Nevertheless, we have informed the district court that we are willing to extend the bar date for wildfire claims. We will inform the bankruptcy court in advance of the hearing to extend the bar date, which is scheduled for next month."
