SAN FRANCISCO (AP) - PG&E has reworked a $13.5 billion dollar settlement for victims of deadly wildfires blamed on the utility.
It comes after California Governor Gavin Newsom rejected the company's financial rehabilitation plan on Friday.
The revision Tuesday removes a provision requiring Newsom to approve the deal as a key piece of PG&E's plan to emerge from bankruptcy protection by June 30.
California regulators also say they reached a $1.7 billion settlement with PG&E over the fires that prevents it from recouping money from ratepayers.
Also, a federal bankruptcy judge has approved two Pacific Gas & Electric settlements totaling $24.5 billion to help pay for the losses suffered by homeowners, businesses and insurers in a series of catastrophic Northern California wildfires.
Those fires led the company into a financial morass and Tuesday's decision bolsters PG&E’s chances of following its preferred path for getting out of bankruptcy by a June 30 deadline.
Even so, the utility still must sway California Gov. Gavin Newsom from his recent recent conclusion that PG&E’s plan doesn’t comply with state law to prevent the settlements from unraveling.
Action News Now will update with the latest developments as they become available.