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PG&E to restructure board in wake of fires, lawsuits and bankruptcy

Posted at 9:58 AM, Feb 11, 2019
and last updated 2019-02-11 12:58:53-05

In the aftermath of deadly fires, mounting lawsuits and Chapter 11 bankruptcy, PG&E now plans to restructure its board of directors before the annual shareholder meeting in May.

Monday morning, the state’s largest utility announced five of the ten board of directors will stand for election in the coming months. In addition, eleven independent directors will also be added to the board.

The board released this statement which reads in part, “We fully understand that PG&E must re-earn trust and credibility with its customers, regulators, the communities it serves and all of its stakeholders, and we are continuing to make changes that reinforce PG&E’s commitment to safety and improvement. We recognize the importance of adding fresh perspectives to the Board to help address the serious challenges the business faces now and in the future.”

According to a press release, the Board is working with a leading search firm and has identified strong candidates who would add fresh perspectives and augment the Board’s expertise in safety, operations and other critical areas.

In filing bankruptcy last month, PG&E listed more than $50 billion in liabilities. The liabilities include lawsuits from 35 families impacted by the Camp Fire, the deadliest fire in California history. An investigation into whether PG&E equipment is to blame for the Northern California fire is ongoing.

It is not clear which current board members will remain after the restructuring.