PG&E files for bankruptcy after devastating California wildfires

PG&E files for bankruptcy after devastating California wildfires

The company stated in the filing that bankruptcy was the "only viable option".

PG&E must also contend with anxious suppliers.

PG&E also filed for bankruptcy in 2001 during an electricity crisis marked by rolling blackouts and the manipulation of the energy market.

PG&E, which supplies natural gas and electricity to 16 million people in Northern and central California, cited hundreds of lawsuits over fires in 2017 and 2018 and tens of billions of dollars in potential liability when it announced earlier this month that it planned to file for bankruptcy.

Wildfire damage has become a multibillion-dollar liability for the utility.

These promises will likely come up in a Wednesday hearing where the federal court judge overseeing PG&E's criminal probation for its role in causing the deadly 2010 San Bruno pipeline explosion will consider ordering PG&E to reinspect, fix and clear vegetation from the entirety of its 106,000 miles of transmission and distribution grid by the start of summer this year. Newsom's office estimated that more than half of the roughly $30 billion in potential wildfire damages that PG&E said it was facing was from that fire.

Solskjaer warns United against complacency after Burnley scare
Manchester United's 2-2 draw against Burnley showed just how ineffective Ole Gunnar Solskjaer's side is without their best midfielder - Ander Herrera.

California's Department of Forestry and Fire Protection - also known as CAL FIRE - earlier this week released the results of its investigation concluding that PG&E equipment did not cause the Tubbs Fire of October 2017, which burned a total of 36,807 acres, destroyed 5,636 structures and resulted in 22 civilian fatalities and one firefighter injury. The fires included the nation's deadliest in a century - a November blaze that killed at least 86 people and destroyed 15,000 homes in Paradise, California and surrounding communities.

Flames burn near power lines in Montecito, Calif. Filing for bankruptcy does not generally put criminal proceedings on hold, said Jared Ellias, a bankruptcy attorney who now teaches at the University of California, Hastings College of the Law.

Documents provided to AFP by the operator said the power line, called "Caribou Palermo", was put into service in the 1920s by Great Western Power Company, which was acquired by PG&E in 1930. "We are not 'going out of business, ' and there will be no disruption in the services you expect from us", interim Chief Executive John Simon said in a letter to customers.

Some have attempted to blame global warming for PG&E's bankruptcy, and Williams said the company was under pressure from "climate-driven extreme weather". "And this will take years to sort out". It emerged from bankruptcy three years later but obtained billions in higher payments from ratepayers. But he said the bankruptcy case and the criminal matter before Alsup would overlap a great deal, so it would be "hard to imagine both going forward, as the judges could enter conflicting orders". To achieve that, utilities must switch to buying power from renewable sources. Its stock is 70 percent from a year ago.

But because of its bankruptcy, some experts have questioned the company's ability to pay what it agreed to, or to make investments in grid upgrades and batteries necessary to bring more renewable energy online.

Related Articles