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SAN FRANCISCO (AP) — California Gov. Gavin Newsom’s opposition to Pacific Gas & Electric’s restructuring plan just a week after it struck a .5 billion settlement with fire victims is forcing the nation’s largest utility to go back to the negotiating table and come up with a solution fairly quickly.The San Francisco-based company needs to pull a deal off to meet a June 30 deadline to emerge from bankruptcy protection and regain its financial footing.Missing the deadline would prevent PG&E from being able to draw from a special fund created by the Democratic governor and state lawmakers to help insulate California utilities from future fires that many people believe are bound to erupt as a changing climate continues to create hazardous conditions. Utilities are at risk because their aging electric transmission lines are expected to take years to upgrade.On Thursday, PG&E filed an amended reorganization plan with the U.S. Bankruptcy Court after reaching a settlement on Dec. 6 with thousands of people who lost homes, businesses and family members in a series of devastating fires.In his letter on Friday, Newsom said the plan does not comply with state law and does not achieve the goal of addressing what he considers its most important elements: providing safe and reliable power to PG&E customers.“In my judgment, the amended plan and the restructuring transactions do not result in a reorganized company positioned to provide safe, reliable, and affordable service,” he said.The governor said PG&E’s plan did not go far enough in improving safety, corporate governance and the company’s financial position. The company has until Tuesday to appease Newsom and get him to sign off on the plan.“We’ve welcomed feedback from all stakeholders throughout these proceedings and will continue to work diligently in the coming days to resolve any issues that may arise,” PG&E said in a statement.Without the added protection of the California wildfire fund, PG&E would likely find it more difficult to borrow money to pay for the necessary upgrades and perhaps even fund its ongoing operations if it remains mired in bankruptcy proceedings beyond June 30.If PG&E can’t get a revised deal with the fire victims approved, it also will face the specter of navigating through two other legal gauntlets early next year that would be used as an alternative way to estimate how much the company owes for the catastrophic wildfires in 2017 and 2018 that killed nearly 130 people and destroyed about 28,000 structures in its sprawling service territory.One, a California state trial to be held in January, will determine whether PG&E is liable for a 2017 fire in Sonoma County that the company hasn’t accepted full responsibility for. The trial would also award damages to the victims if PG&E is blamed. A subsequent proceeding, known as an estimation hearing, is scheduled in February before a federal judge to determine PG&E’s total bill for all the fires that could have been covered in the settlement that had been worked out with the victims.Attorneys for the fire victims so far have collectively lodged claims of about billion against PG&E, according to court documents. But that figure could rise even higher after the state trial and estimation hearing, and it if does would likely leave PG&E unable to meet its financial obligations — a development that could lead U.S. Bankruptcy Judge Dennis Montali to declare the company insolvent.If that were to happen, it would automatically void a separate billion settlement deal PG&E has reached with insurers who say they are owed billion for the fire insurance claims they expect to pay their policyholders in the wildfires blamed on the utility. The insurance settlement, though, is also being opposed by Newsom, and is still awaiting Montali’s approval.The governor “may have upset a rather delicate bankruptcy process,” said Jared Ellias, a bankruptcy expert at University of California, Hastings College of the Law.“We’re going to see how resilient the deal that comes out of this process is going to be and whether it can adjust to meet his approval,” he said. 4197

SAN FRANCISCO (AP and KGTV) — California's state auditor says the California State University system kept .5 billion in discretionary reserves while raising tuition at its 23 campuses and lobbying the Legislature for more funds.Auditor Elaine Howle says in a report released Thursday that CSU put the money, which came primarily from student tuition, in outside accounts rather than in the state treasury.It says CSU accumulated the surplus from 2008 to 2018. That is during the same time it nearly doubled student tuition. CSU did not fully inform legislators and students about its surplus.CSU Chancellor Timothy White said in a statement the report is misleading. He called it irresponsible to imply that these "one-time funds" could have been used in place of ongoing revenue sources such as state funding or student tuition.Read San Diego State University's response to the audit here.Read White's full statement: 928

SAN FRANCISCO (AP) — A federal judge in San Francisco is mulling the competency to stand trial of a Mexican man who shot and killed 32-year-old Kate Steinle. The 2015 shooting figured prominently in President Donald Trump’s run for the White House four years ago. The case against Jose Ines Garcia Zarate on federal gun charges has been pending since a judge raised “serious concerns” about Garcia Zarate's mental capacities back in January. Two doctors have diagnosed Garcia Zarate with schizophrenia and found him unfit to stand trial. The San Francisco Examiner reports that Garcia Zarate told the court Friday through a Spanish interpreter that he wanted to be sentenced to prison or deported back to Mexico. 720

SAN FRANCISCO (AP) — A California state appeals court has thrown out the sole conviction against an immigrant who fatally shot a woman on the San Francisco waterfront in 2015.The 1st District Court of Appeal on Friday overturned a gun conviction against Jose Inez Garcia-Zarate because the judge failed to instruct the jury on one of his defenses.Garcia-Zarate was acquitted of murder in the killing of Kate Steinle, who was on a pier with her father when she was shot in the back in July 2015.The case of Garcia-Zarate, who was in the country illegally and had been deported five times, touched off a fierce immigration debate.He said he unwittingly picked up the gun wrapped in a T-shirt and it fired accidentally.Garcia-Zarate is in custody and facing federal gun charges. 783

SAN DIEGO, Calif. (KGTV) - Street racing could return to SDCCU Stadium, after just a couple month's hiatus.RaceLegal, a non-profit that has run drag races in the stadium parking lot for 21 years, says they have new leadership and new funding. They hope to resume racing soon.But, organizers say they're having trouble getting permission from the City of San Diego to use the venue."This is really important for the community," says Lydia Denecochea, RaceLegal's Executive Director. "It saves lives."RaceLegal started in the late 1990s as a response to a rash of street racing crashes and deaths. Denecochea says giving people a safe, controlled environment to race has made the roads safer across the city."It's a human characteristic that we are competitive, and many of us love speed. It'll never go away," she says.The non-profit group joined forces with city leaders, the San Diego Police Department and the San Diego Sheriff to give drivers an alternative. People could even volunteer at events to satisfy community service requirements from traffic tickets.The number of deaths from street racing fell from 16 in 2000 to just two in 2018. Injuries also saw a drastic drop-off in the same time frame, from 39 to only one."It works," says Denecochea. "In 2000, we had carnage on our roads."But a lack of funding led the non-profit to close in early 2019. A message on their website told supporters that the budget deficit, "renders the program not viable to continue service to our community."RELATED: RaceLegal stops drag races after more than two decades in Mission ValleyThey held what many thought would be their final race on March 1.Since then, interest from a private investor has Denecochea looking into holding more races. She's now asking supporters to send a letter to the Mayor's office and to other city leaders urging them to let RaceLegal use SDCCU Stadium again.A spokesperson from the city told 10News they're looking into the issue. In a statement, they said, "The City is in communication with RaceLegal on the potential resumption of legal racing at the stadium. However, concurrently the City is in discussions with other race producers to ensure that legal racing at the stadium continues to provide a safe option for the San Diego community."Councilmember Scott Sherman's office says they've also been in touch with RaceLegal and with the stadium to resolve the issue.One potential roadblock is the pending sale of SDCCU Stadium and the land around it to San Diego State University. In November, voters passed Measure G, which authorized the deal to create an SDSU West campus and build a new stadium for the Aztec football program.Denecochea says she wants the city to let RaceLegal keep racing until construction starts. She thinks they can use that time to find a new venue."It's worth it to save 16 lives a year," she says. 2862