PG&E, Facing Colossal Liability, Seeks Bankruptcy Protection

SAN FRANCISCO (AP) — Facing potentially colossal liabilities over deadly California wildfires, PG&E will file for bankruptcy protection.

The announcement Monday follows the resignation of the power company’s chief executive a day earlier.

PG&E said Monday that it’s given the required 15-day advance notice that it plans to file for Ch. 11 bankruptcy protection.

The company has already been blamed by state fire investigators for wildfires that broke out in October 2017.

The company says will be able to gain access to capital and resources it needs to continue providing service to customers as it restructures.

Late Sunday, PG&E Corp. said that CEO Geisha Williams resigned and that John Simon will serve as interim chief executive.

Governor Gavin Newsom released a statement from his office early Monday on PG&E’s plan to file for bankruptcy:

“PG&E provides gas and electric service to 16 million Californians. From the moment I was elected, I have been closely monitoring the impact of PG&E’s existing and potential future liability for the deadly wildfires on the victims of the fires and the consumers who rely on PG&E for their electric and gas service.

“When I took office one week ago today, I immediately instructed my team to meet with the California Public Utilities Commission, CAISO, PG&E, and labor unions representing the workers who work for PG&E. My staff and I have been in constant contact throughout the week and over the weekend with these stakeholders and regulators. Everyone’s immediate focus is, rightfully, on ensuring Californians have continuous, reliable and safe electric and gas service.

“While PG&E announced its intent to file bankruptcy today, the company should continue to honor promises made to energy suppliers and to our community. Throughout the months ahead, I will be working with the Legislature and all stakeholders on a solution that ensures consumers have access to safe, affordable and reliable service, fire victims are treated fairly, and California can continue to make progress toward our climate goals.”

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.