PG&E Ordered to Pay $3.5 Million Fine in Camp Fire Case

Philip Binstock recounted the life of his father, Julian, who grew up in a family of modest means but went on to attend Harvard and become a vice president at Warner Bros. He also angrily criticized PG&E for its failings.

“You had the capacity to know what you were doing would kill people,” Mr. Binstock said. “You knew what you were doing was wrong. And rather than reduce your bonuses, you allowed your failed equipment and your improper inspections to kill people.”

PG&E responded to survivors with a statement from William L. Smith, the company’s incoming interim chief executive, who promised to improve how the company operates.

“I hear their pain and anguish, and acknowledge the lasting impact that the fire will have on so many people in the Butte County community and far beyond,” Mr. Smith said. “We also heard profound disappointment and anger toward PG&E.”

State officials have required the company to make major changes. PG&E needed California’s support to exit bankruptcy, and Gov. Gavin Newsom demanded the utility reform its board, change its leadership structure, improve safety, compensate fire victims and exit bankruptcy by June 30.

Although the governor has no direct authority over the bankruptcy case, PG&E had to meet his requirements in order to participate in a $20 billion fund that will help cover liability utilities could face from future fires started by their equipment. PG&E needs access to the fund to convince stock and bond investors that it would not slip into bankruptcy again for starting fires.

U.S. Bankruptcy Judge Dennis Montali said in a memorandum on Wednesday that the company’s reorganization plan, which will provide $13.5 billion to wildfire victims, was feasible and the only one before the court. He has scheduled a hearing for Friday, at which he is expected to give his final approval to PG&E’s plan.

“All of the victims, all of the over sixteen million PG&E customers in Northern California, indeed all of Northern California if not the rest of the country, know the story,” Judge Montali wrote in his memo. “Leaving tens of thousands of fire survivors, contract parties, lenders, general creditors, allegedly defrauded investors, equity owners and countless others with no other options on the horizon is not an acceptable alternative.”