PG&E to file for bankruptcy following devastating California wildfires

A home burns as the Camp fire tears through Paradise, California on November 8, 2018. - More than 18,000 acres have been scorched in a matter of hours burning with it a hospital, a gas station and dozens of homes. (Photo by Josh Edelson / AFP) (Photo credit should read JOSH EDELSON/AFP/Getty Images)

California’s largest power company intends to file for bankruptcy as it faces tens of billions of dollars in potential liability after massive wildfires devastated parts of the state over the past two years, according to a filing with the Securities and Exchange Commission.

Pacific Gas and Electric said Monday that declaring insolvency is “ultimately the only viable option to restore PG&E’s financial stability to fund ongoing operations and provide safe service to customers.”

The California wildfires, which have killed dozens of people and destroyed thousands of homes, have led to a surge in insurance claims. PG&E estimates that it could be held liable for more than $30 billion, according to the SEC filing, not including potential punitive damages, fines or damages tied to future claims. The company’s wildfire insurance for 2018 was $1.4 billion.

The PG&E bankruptcy promises to be more complex and political than most bankruptcies, pitting fire victims, ratepayers, bankers, insurance companies and renewable-energy providers against one another. Homeowners with property insurance will collect from their insurers, and a person familiar with the bankruptcy planning said that hedge funds are already offering to buy settlement claims from insurance companies. …

Click here to read the full article from the Washington Post

Comments

  1. Of course…
    Privatize the profits and socialize the losses…
    It’s the crony capitalist way….
    What’s Moonbeam have to say about this???
    Happened on his watch….

  2. All the money that Newsom is proposing to spend (!) is not what he should be doing with taxpayer money. At this point he should be clearing brush and forests to avert any further fires and loss of life. That would be the common sense approach to what is needed….not to mention the supposed shortage of water. Where are the dams that taxpayers voted and paid for many moons ago?
    He wants to appear to put people first, but certainly he is not. All the while allowing more and more and more illegals into the state to use more housing and more water and more policing. He is putting every Californian at risk. He needs to go.

  3. Just turn it over to the Sierra Club and everyone on The Left will be happy.

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