The CPUC (state regulators) already stipulate literally how much money PG&E is allowed to make, i.e. target profit margin. PG&E isn't state-owned but is largely not allowed to make its own decisions.

Especially since the CPUC is not widely understood, this structure allows elected officials to present themselves as not being responsible for the tradeoffs PG&E has to make, even as the CPUC actually makes those decisions for them.