Insurance companies contending that Pacific Gas & Electric owes them more than $20 billion from wildfire claims want to take over the California utility and pull it out of bankruptcy.
The insurers filed court documents Tuesday to end PG&E's exclusive right to file a reorganization plan. They want the right to submit their own plan to wildfire victims and other PG&E creditors.
Their request came ahead of a Wednesday hearing at which a bankruptcy judge is expected to consider a request by PG&E bondholders who want to submit a restructuring plan.
FILE - This Jan. 14, 2019, file photo shows the logo for Pacific Gas & Electric Co. above a trading post on the floor of the New York Stock Exchange. A group of insurance companies are offering a plan to take over Pacific Gas & Electric, the latest to offer competing proposals to pay the utility's wildfire liabilities and pull it out of bankruptcy. In court filings Tuesday, July 23, 2019, the insurers said PG&E Corp. owes them more than $20 billion in claims paid to victims of recent California wildfires caused by PG&E equipment and offered a "viable path" to emerge from bankruptcy. (AP PhotoRichard Drew, File)
PG&E filed for bankruptcy in January to deal with an estimated $30 billion in liabilities from wildfires its equipment may have ignited in 2017 and 2018, including the wildfire that largely destroyed the Northern California town of Paradise and killed 85 people.
The insurers have said the utility owes them about $20 billion in reimbursements for wildfire claims. Under their plan, many of their claims against PG&E would be converted into new stock, giving them a sizable share of the company's shares and allowing them to establish what they described as a "well-funded" trust for wildfire victims.
The insurers said their plan provides "a viable path" toward PG&E emerging from bankruptcy. They argued the utility has made little progress in settling claims and that other stakeholders should be allowed to present their own.
PG&E has until Sept. 26 to submit its plan and is resisting insurers' attempt to present their own.
In a statement Tuesday, the utility said it has made "significant progress in developing a viable, fair and comprehensive plan of reorganization that will compensate wildfire victims, protect customer rates, and put PG&E on a path to be the energy company our customers need and deserve."
Allowing the insurers to submit their plan ahead of PG&E's proposal "would increase the potential for a long, drawn-out bankruptcy process and create unnecessary delay," the company added.
The bondholders requesting court permission to offer their own reorganization plan include some of the biggest investors on Wall Street.
They are seeking to invest more than $30 billion, which would give them a majority stake in the company. The bondholders said they would set aside at least $16 billion of their investment into a trust to pay claims arising from the 2017 and 2018 wildfires.
The stakes surrounding PG&E's bankruptcy exit plan intensified after Democratic Gov. Gavin Newsom signed a law on July 12 requiring major utilities to spend at least $5 billion on safety improvements and creating a fund of up to $21 billion to help pay out future wildfire victims.
The fund is aimed at financially stabilizing the state's three largest investor-owned utilities: PG&E, Southern California Edison and San Diego Gas & Electric.
The law says PG&E can't access the financing mechanism unless it gets out of bankruptcy by the end of June 2020.
The governor's office, along with state utility regulators, said they will ask the judge Wednesday to establish a timeline and process for the bidders to submit their proposal.
Legal advisers for Newsom and the California Public Utilities Commission said they want to encourage an organized, competitive process to achieve the best results for the state.
"All offers out there should to be brought to the table, and given a fair and transparent opportunity to compete," said Nancy Mitchell, an attorney advising for Newsom's office.
VENICE, Italy (AP) — Under the gaze of the world’s media, the fragile lagoon city of Venice launches a pilot program Thursday to charge day-trippers a 5-euro (around $5.35) entry fee that authorities hope will discourage visitors from arriving on peak days and make the city more livable for its dwindling residents.
Signs advising arriving visitors of the new requirement for a test phase of 29 days through July have been erected outside the main train station and other points of arrival.
Some 200 stewards have been trained to politely walk anyone unaware of the fee through the process of downloading a QR code. A kiosk has been set up for those not equipped with a smartphone. Once past designated entry ports, officials will carry out random checks for QR codes that show the day-tripper tax has been paid or that the bearer is exempt.
Transgressors face fines 50 euros to 300 euros. The requirement applies only for people arriving between 8:30 a.m. and 4 p.m. Outside of those hours, access is free.
“We need to find a new balance between the tourists and residents,’’ said the city’s top tourism official, Simone Venturini. “We need to safeguard the spaces of the residents, of course, and we need to discourage the arrival of day-trippers on some particular days.”
Venice has long suffered under the pressure of over-tourism, but officials say that pre-pandemic estimates ranging from 25 million to 30 million visitors a year — including day-trippers — are not reliable and that the pilot project also aims to come up with more exact figures to help better manage the phenomenon.
By contrast, registered visitors spending the night last year numbered 4.6 million, according to city figures, down 16% from pre-pandemic highs.
Venturini said the city is strained when the number of day-trippers reaches 30,000 to 40,000. Its narrow alleyways are clogged with people and water taxis packed, making it difficult for residents to go about their business.
Not all residents, however, are persuaded of the efficacy of the new system in dissuading mass tourism, and say more attention needs to be paid to boosting the resident population and services they need.
Venice last year passed a telling milestone when the number of tourist beds exceeded for the first time the number of official residents, which is now below 50,000 in the historic center with its picturesque canals.
“Putting a ticket to enter a city will not decrease not even by one single unit the number of visitors that are coming,’’ said Tommaso Cacciari, an activist who organized a protest Thursday against the measure.
“You pay a ticket to take the metro, to go to a museum, an amusement park; you don’t pay a ticket to enter a city. This is the last symbolic step of a project of an idea of this municipal administration to kick residents out of Venice,” he said.
Venturini said about 6,000 people had already paid to download the QR code, and officials expect paid day-tripper arrivals Thursday to reach some 10,000.
More than 70,000 others have downloaded a QR code denoting an exemption, including to work in Venice or as a resident of the Veneto region. People staying in hotels in Venice, including in mainland districts like Marghera or Mestre, should also get a QR code attesting to their stay, which includes a hotel tax.
The tourist official says interest in Venice's pilot program has been keen from other places suffering from mass tourism, including other Italian art cities and cities abroad such as Barcelona and Amsterdam.
Tourists take pictures at the St. Mark square in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourists ride on a ferry boat in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
People stand in front of an information board explaining how to pay the tourist tax in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Marco Bettini, director of Venis Informatics System, gestures as he talks to reporters at the police Venice control room, in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Venice councillor Simone Venturini speaks with reporters in front of a tourist tax totem in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Workers prepare banner explaining how to pay the tourist tax in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Marco Bettini, director of Venis Informatics System, gestures as he explains the Venice density to reporters at the police Venice control room in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourists arrive at the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Workers prepare the tourist tax cashier desks outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Porters wait for tourists outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Workers prepare the tourist tax cashier desks outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Workers prepare the tourist tax cashier desks outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Porters wait for tourists outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourists arrive outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourist information boards are seen outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
Tourists arrive outside the main train station in Venice, Italy, Wednesday, April 24, 2024. The lagoon city of Venice begins a pilot program Thursday, April 25, 2024 to charge daytrippers a 5 euro entry fee that authorities hope will discourage tourists from arriving on peak days. Officials expect some 10,000 people will pay the fee to access the city on the first day, downloading a QR code to prove their payment. (AP Photo/Luca Bruno)
