What PG&E’s Ch. 11 Filing Could Mean Moving Forward

What PG&E’s Ch. 11 Filing Could Mean Moving Forward

What PG&E’s Ch. 11 Filing Could Mean Moving Forward

"Whereas we're making progress as an organization in security and different areas, the board acknowledges the great challenges PG&E continues to face", mentioned Richard C. Kelly, PG&E's chairman.

The company is having discussions with its investors and lenders for a fund of $5 billion which will save it from going into bankruptcy.

Shares of PG&E Corp. had plummeted more than 51 percent as of 3 p.m. ET on Monday.

Monday's announcement comes just a day after the company said its CEO is stepping down. Cal Fire says the Camp Fire began November 8 at 6:33 a.m. local time on Pulga Road in Butte County - and PG&E sent an official notice to the California Public Utilities Commission describing an outage on one of its transmission lines at Pulga Road at 6:15 a.m.

The San Francisco-based company said its decision to reorganise under Chapter 11 is tied to more than Dollars 30 billion in claims it is facing over the so-called 2018 Camp Fire in Northern California - the deadliest in the state's recent history - that left 86 people dead. The California Insurance Department said the Camp Fire and two other wildfires past year destroyed 19,000 homes and businesses in the state.

PG&E, which is the nation's largest utility by revenue and is based in San Francisco, said it is giving the required 15 days' notice that it plans to file for bankruptcy protection at the end of the month.

PG&E's safety record has come under sharp scrutiny before.

State officials are investigating whether the utility's equipment sparked the deadliest, most destructive wildfire in California history, a November Northern California blaze that killed at least 86 people and burned down 15,000 homes.

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As a regulated utility, PG&E has appealed to the California Public Utilities Commission for higher gas and electric rates to recover costs.

Few politicians want to rush to the defense of a big utility, but many policy experts argue that PG&E wouldn't be in this position if it weren't for a unique California legal standard that makes utilities strictly liable for damages from wildfires linked to their equipment even if the utilities were not negligent or unreasonable.

The announcement follows the resignation of chief executive Geisha Williams a day earlier. Her actions coincided with the news that the company would be filing for bankruptcy on January 29.

"We would like to see it (bankruptcy) avoided, but we are not naive", Newsom said. Here, transmission towers in a valley near Paradise, Calif., as the Camp Fire burns in November 2017.

Patterson is the vice chair of the Assembly's Utilities and Energy Committee. Lawmakers a year ago tried to prevent a threatened PG&E bankruptcy resulting from the 2017 fires by letting the utility pass on some of its costs to ratepayers, a move some critics dubbed a "bailout" for the utility.

Last week, a federal judge proposed requiring PG&E to re-inspect its entire electric grid and "remove or trim all trees that could fall onto its power lines".

As for the lawsuits, PG&E will negotiate with the plaintiffs and its other creditors a reorganization plan based on how much the utility is able to pay, said Hugh Wynne of Sovereign Research, an investment research firm.

"The Natural Resources Defense Council warned that bankruptcy could threaten billions in funding for PG&E's clean energy initiatives, which are key to California's environmental goals". He's confident bankruptcy won't change the outcome of their lawsuits. PG&E is the state's largest investor in energy efficiency and electric vehicle infrastructure, said the NRDC's Ralph Cavanagh. "Other threatened initiatives involve grid upgrades, small-scale "distributed" resources and technology innovation".

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