California's Largest Utility Goes Bankrupt Under Billions In Wildfire Debt

California utility equipment sparked more than 2,000 fires in over three years

The move also faced pushback from some investors: Fund manager BlueMountain Capital Management issued an open letter to PG&E shareholders last week, arguing that the bankruptcy filing is unnecessary, and called for a new board of directors for the company. Rather, they along with the company's creditors and suppliers, will need to tussle for a payout from the company.

PG&E faces court in San Francisco today, a day after filing for bankruptcy.

Throughout this process, we are fully committed to enhancing our wildfire safety efforts, as well as helping restoration and rebuilding efforts across the communities impacted by the devastating Northern California wildfires.

California's power grid operator said on Tuesday the bankruptcy filing by PG&E Corp and its Pacific Gas and Electric Co utility, the biggest USA power company, has not had any effect on the state's power grid and energy markets. Although a legislative effort to extend the law's coverage to 2018 fires was launched in November, the lawmaker behind the effort announced he was scrapping it last week, after PG&E notified the state it was planning to file for bankruptcy.

This week, investigators with the California Department of Forestry and Fire Protection cleared PG&E of responsibility for starting the Tubbs Fire, slashing the estimated $15 billion in damages from that fire from its list of liabilities. PG&E is facing roughly $30 billion in potential liability after it caused hundreds of fires in the past few years.

The Chapter 11 filing allows PG&E to continue operating while it puts its books in order. State investigators determined that PG&E's equipment sparked or contributed to more than a dozen of those fires, which killed 22 people. The cause is under investigation, but suspicion fell on PG&E after it reported power line problems nearby around the time the fire broke out.

Emiliano Sala: Cushions believed to be from missing plane found
If the wreckage is found, a remotely operated vehicle (ROV) will be used to visually examine the wreckage. The official search for the missing footballer was called off on Thursday against his family's wishes.

PG&E crew work to fix damage caused by the Camp Fire in Paradise, California, U.S. November 21, 2018.

The shares rose because "you've got some guys who are looking at their estimates of future recovery and thinking that there's going to be positive recovery for the equity", Katie Bays, a Washington-based analyst at Height Securities LLC, said in an interview Tuesday. Company advisers expect that it may take up to two years to emerge from bankruptcy.

Federal energy regulators said on Friday they had joint jurisdiction with a bankruptcy court over requests to cancel or renegotiate power contracts by PG&E.

Utilities around the nation are preparing for the potential effects of climate change, taking such steps as fortifying substations and burying power lines against severe hurricanes and wildfires. To achieve that, utilities must switch to buying power from renewable sources. Williams had served as PG&E's CEO since March 2017. But because of the utility's bankruptcy, some experts have questioned its ability to pay what it agreed to, or to make the investments in grid upgrades and batteries necessary to bring more renewable energy online.

PG&E's stock is down 70 percent from about a year ago amid fears about the effects of the wildfires.

Related News:

Most liked

Wall Street surges after Fed signals patience on rates
France's CAC 40 is up 0.5 percent and Britain's FTSE 100 is 0.8 percent higher, though Germany's DAX is down 0.2 percent. With the Fed decision out of the way, investors focused their attention on a pivotal round of high-level U.S.

Tennis champ Andy Murray confirms hip operation, metal joint implant
That did not work as, despite a comeback at Queen's in the summer, Murray was not able to compete sufficiently on the tour. And if it does not allow him to return to the court, he will have played the last game of his glittering career.

Police find footage of potential suspects in Jussie Smollett attack
The publication further reports that production is set to resume on Thursday if weather conditions permit. Smollett has been active in LBGTQ issues and he released his debut album, "Sum of My Music", a year ago .

ICC Women's Championship: Mandhana stars as India thrash New Zealand
The win, though, was set up by India's bowlers, who, after Raj opted to field first, shot the home side out for 161 in 44.2 overs. While Shikha Pandey picked one wicket, Ekta Bisht, Deepti Sharma and Poonam Yadav contributed with two wickets each in the match.

Novak Djokovic: 'Rod Laver Arena brings me a lot of memories'
Conviction fuels the firmness of goal and gives a person the energy to knock down the hurdles that lay in their path. The 53rd instalment of the epic Djokovic-Nadal rivalry had been billed as one of the most anticipated ever.

Everton midfielder Idrissa Gueye reiterates his desire to PSG
The pressure is mounting on the former Watford boss after Everton crashed out of the FA Cup at Millwall on Saturday evening. PSG have already had a £21.5 million bid rejected by Everton but remain in discussions over a deal.

Neymar Out For Over Two Months With Foot Injury
An operation would have put Neymar's participation in that tournament at risk, as well as effectively ending his club season. The Brazil forward suffered the injury in a 2-0 French Cup victory over Strasbourg on Wednesday, 23 January.

Nvidia and Caterpillar Point to Weakness in China as Outlooks Dim
Wall Street is keyed in on China and how its slowing economy will play out for companies ranging from Caterpillar to Apple . Caterpillar shares fell more than 5 per cent in pre-market trading, which would be the biggest decline this year.

Pound stays pressured as Brexit amendment votes come into focus
He said he was "very pleased" MPs have stated that they oppose a no-deal Brexit "despite huge effort from whips". However, following both of these rejections, the MPs have also voted for Caroline Spelman's amendment.

New Zealand vs India, 4th ODI: Preview and predicted playing XI
Team India is eyeing their first and historic 5-0 series win on New Zealand soil and today will head into another fierce contest. Team India has already clinched the series with victories in the first three games.

Measles outbreak in Washington state, BCCDC advises residents to update immunization
The introduction of the vaccine, which is 97 percent effective after two doses, dramatically reduced measles rates in the country. The tragedy is that the deadly disease and its consequences are nearly 100 percent preventable if the population is vaccinated.

Klay Thompson Interested In Lakers If Anthony Davis Is Traded To LA
It is thought the Lakers will have to let a number of their key assets go as part of any trade for the power forward. With Davis being regarded as one of the top big men in the league, many believe the trade would be fair.

Neymar ruled out for both legs vs. Manchester United, likely needs surgery
With new manager Ole Gunnnar Solskjaer, United is undefeated in eight games and playing really well. The concern will be at the back where the Red Devils still have some issues.

Priyanka Chopra Tells Ellen About Her Wedding & Nick Jonas!
After the grand wedding in Jodhpur in December 2018, the couple has been spending quality time with their families in Los Angeles. Jonas set off to the Swiss Alps to ring in the new year alongside a few friends and family.

Arsenal line up £35m move for Inter Milan winger Ivan Perišić
Reports last week claimed that Arsenal already had a bid rejected by Inter to sign Perisic on a six-month loan deal. We intend to get him back on track and it shouldn't be a problem.