Add corruption to that. PG&E was insolvent (liabilities >> assets) and required a bailout from the state (because nobody would pay more than zero dollars for the company).
That the state didn't simply take the assets and indemnify the previous owners for the liabilities (thus turning it into a giant "municipal" power company) speaks to corruption in CPUC and the state in general.
In addition to dealing with inflated California construction costs, they also routinely block construction projects and urgent home repairs.