PG&E covering their financial asses over California wildfires by declaring bankruptcy

Overwhelmed by billions of dollars in claims from the Camp Fire and the 2017 wildfires of Northern California, PG&E said Monday it plans to file for bankruptcy.

The embattled utility gave 15-day notice of its intent to file for protection under Chapter 11 of the bankruptcy code, as required by a state law enacted last fall to deal with utility fire liabilities. The company made the announcement barely 12 hours after announcing the resignation of its CEO, Geisha Williams.

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13 Responses to PG&E covering their financial asses over California wildfires by declaring bankruptcy

  1. judgeroybean says:

    California democrats should have to pick up the tab. They continually elected public officials who are responsible. Liberal politicians were in bed with environmentalists responsible for most disasters. Time for them to be held responsible.

    • FaCubeItches says:

      That’s the thing about holding near absolute political power, though – you’re never at fault. The opposition always is. Per Mel Brooks: “It’s good to be the king.”

  2. STW says:

    Last time they went bankrupt was 2001. Anyone recall any changes or improvements beyond sluffing off debt? The next question is whether the curve to their next bankruptcy is logarithmic or linear. Stated differently, is California getting more hostile to business or not?

  3. Nemo says:

    The officers and managers of this company need to be held accountable, but that’s NOT going to happen. Just like the Federal Reserve and the bankers that helped cause the real estate bubble in the 00’s which precipitated the 2008 stock market crash or more recently the Wells Fargo personal accounts fiasco or the 80’s Savings and Loan crisis, none of these POS’s EVER get held accountable. Well, except Bernie Madoff. I think the only reason he was held accountable was try to show us dirt people thet “the justice system works”. Believe that one and I’ve a got a bridge south of town I’ll sell you real cheap.

    • ChuckN says:

      Don’t get me wrong PG&E needs to take a financial hit, but to blame them for the fire is a problem. By blaming them the real culprits of the fire’s spread and devestation get to pass the buck with no implications. PG&E may be the root cause of the fire itself but 40+ yrs of half-witted eco-nuts making policy is the real issue.

      • Andrew says:

        Yes, the company is at fault for following the rules and regulations forced on them by all the eco-nuts, so of course hang every executive for following the eco-nuts.

        This is one of the clearest cases of “you get what you pay for.”

        • ChuckN says:

          I’ll clarify: if PG&E caused the ignition through poor engineering/maintenance etc, then yes they need to take a hit. If the fire was initially spread because PG&E were prevented from maintenance or normal clean up around wires/transformers, then no to me they would be in the clear.

          On another note, if they were prevented in any way by eco-freaks then I would think going directly to the President and twitter would be a smarter course of action. The Pres. has already called out bad policy as the main culprit. Going public with the Pres. at your side would give a heck of a lot better fighting chance then declaring bankruptcy and falling before corrupt California courts screaming for a scapegoat.

        • H says:

          The driver of the getaway car is just as guilty as the robber who kills the bank teller.

  4. Steve says:

    There is a little more to this story than just a simple CYA. Last Monday S&P downgrades PG&E to junk. Then around Thursday, Moodey’s downgraded them to junk. This triggered a cash collateral call to gaurentee existing supply contracts of $800 million. PG&E only has about $430 million cash on hand, and remember, right after the Paradise fire, they drew down all of their lines of credit. So that $430 mil is literally all they have. Company is insolvent before the first lawsuit is even payed out. Cali taxpayers are going to be footing this bill too. Glad we both got out of that shithole.

  5. Dave says:

    More good news for the California state pension funds that have money in PG&E.

    • Elmo says:

      PG&E’s stock price closed Friday at $17.59. It’s currently at $8.98.

      It’s historical high valuation was $70.38 in August 2017. That was five months after they hired the recently resigned CEO and two months before the Sonoma fires started.

  6. Handy Dandy Carbon Credits says:

    If these wildfires are caused by global war……….climate disr………er……….climate change, why is PG&E being blamed?

  7. Buddha says:

    Utilities know how to design and maintain transmission line right-of-ways, but CA wants the least number of trees cut, so narrow R/Ws, fewer lines carrying more and more load, and encouraging “low-growing” R/W vegetation, well, these are forced on the power company by the democrat/environmentalist legislation. Fires result, surprise, suprise….

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