Firefighting operations near PG&E powerlines try to control the Kincade Fire in California last October. Photo: Philip Pacheco/AFP via Getty Images

PG&E announced a deal with creditors Wednesday that the bankrupt power giant called a major step toward emerging from Chapter 11 bankruptcy, but the company is still at odds with California Gov. Gavin Newsom.

Why it matters: The company's missteps and massive liabilities from wildfires have put a spotlight on how the industry must grapple with conditions likely to be worsened by climate change.

What they're saying: "This agreement helps achieve our goals of fairly compensating wildfire victims, protecting customers' bills and emerging from Chapter 11 as the utility of the future that our customers and communities expect and deserve," CEO Bill Johnson said in a statement.

The big picture, via the Wall Street Journal:

"A series of settlements with victims of the wildfires that drove PG&E into bankruptcy last year capped PG&E’s damages exposure at $25.5 billion. Now bondholders have been appeased with a new deal that could mean revisions to its exit financing."

But, but, but: "Newsom is urging a federal judge to reject Pacific Gas and Electric's blueprint for getting out of bankruptcy and renewing his threat to lead a bid to turn the beleaguered utility into a government-run operation," AP reports.

  • They note that Newsom "has tremendous leverage because the company's plan hinges on its ability to draw upon a special insurance fund California created last summer to help insulate utilities from potential wildfire losses in the future."

Go deeper:

Go deeper

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 33,362,341 — Total deaths: 1,001,800 — Total recoveries: 23,153,572Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 7,149,073 — Total deaths: 205,069 — Total recoveries: 2,794,608 — Total tests: 102,342,416Map.
  3. Business: Companies are still holding back earnings guidance.
  4. Health: Trump announces plan to distribute 150 million rapid tests —The childless vaccine.
  5. Media: Fauci: Some of what Fox News reports about COVID-19 is "outlandish"
  6. States: Cuomo extends New York moratorium on evictions until 2021.
  7. World: More than 1 million people have now died from coronavirus — India the second country after U.S. to hit 6 million cases.

Kentucky attorney general to release Breonna Taylor jury deliberations

Attorney Ben Crump places his hands on the shoulders Tamika Palmer, Breonna Taylor's mother, near a mural of her daughter at Jefferson Square Park on Sept. 25 in Louisville, Kentucky. Photo: Michael M. Santiago/Getty Images

Grand jury proceedings in the case of Breonna Taylor, an unarmed Black woman fatally shot by police, will be released on Wednesday, Kentucky Attorney General Daniel Cameron confirmed to news outlets.

Driving the news: Cameron's announcement late Monday came hours after a judge granted an unnamed juror's court motion seeking the release of last week's transcripts and related recordings.

Bob Woodward: "I was not going to hide" my opinion on Trump

Bob Woodward didn't want to join Senate Republicans in privately condemning President Trump but declining to do so publicly, he told Jonathan Swan in an interview for "Axios on HBO."

Why it matters: Woodward has covered 9 presidents, but Trump is the first that Woodward explicitly described as "the wrong man for the job."

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Subscription failed
Thank you for subscribing!