Controversial ex-AGL boss Andy Vesey exits PG&E early
PG&E emerged from Chapter 11 bankruptcy in July following a restructuring after its equipment was linked to destructive wildfires that hit California in 2018.
Andy Vesey, the combative former boss of power giant AGL Energy, has exited as chief executive of Californian utility Pacific Gas and Electric Company less than a year after taking the high-profile role.
The executive, best remembered in Australia for a long-running stoush with Malcolm Turnbull over coal, was culled by AGL’s board in August 2018, with the former prime minister coincidentally also out the door a few days later.
Mr Vesey moved back to his native US to take up a role in charge of the utility unit of the $US18bn ($24.6bn) New York-listed PG&E Corporation after the role had been vacant for a year.
PG&E disclosed in an SEC filing earlier in August that Mr Vesey will no longer serve as chief executive, president and director of the utility but was eligible to receive severance benefits subject to agreeing to a “customary release of claims”. Mr Vesey did not respond to a request for comment.
The announcement was made after PG&E crashed to a $US2bn loss in the second quarter due to bankruptcy and legal costs.
PG&E emerged from Chapter 11 bankruptcy in July following a restructuring after its equipment was linked to destructive wildfires that hit California in 2018. Mr Vesey’s former chief of staff at AGL, Regina Venzon, moved to San Francisco to take up the same position at PG&E and remains at the company in that role, according to her LinkedIn profile.
California has been hit by rolling blackouts in recent weeks as it struggles to import power supplies from neighbouring states which needed capacity amid searing temperatures. The power shortages have raised questions over whether more storage and gas-fired generation is required, mirroring a debate emerging in Australia.
Mr Vesey oversaw a 50 per cent increase in AGL’s profits and share price from February 2015 and set a path to make the company a cleaner, greener electricity generator and retailer.
But he clashed repeatedly with the federal government over his refusal to sell or extend the life of Liddell beyond its planned 2022 closure — a policy stance that AGL has stuck with although it will now stagger the retirement over the 2022-23 summer.
His exit was unusual. On August 10, 2018 Mr Vesey said he had no intention of going anywhere and was focused on a three-year strategic plan. Two weeks later, he had quit.
Tensions remained high in 2019 amid spiralling power prices and a tough regulatory stance from Canberra. Energy Minister Angus Taylor launched an extraordinary attack on AGL, Australia’s largest electricity generator, in February 2019, accusing it of reaping bumper profits as households struggle with high prices.