PG&E Expects More Than $6B in Wildfire Costs
By Associated Press
Published 4 years ago on
November 7, 2019
Share
SAN FRANCISCO — Pacific Gas & Electric reported substantial losses for the third quarter on Thursday, driven by catastrophic wildfires that have been blamed on the utility’s outdated transmission lines. The company anticipates those costs could escalate to as much as $6.3 billion.
California officials and residents have expressed growing anger over the blackouts, which have left those without power struggling with to keep cellphones charged, find gas and withdraw cash. Businesses and schools were closed for days.
PG&E filed for bankruptcy in January to deal with an estimated $30 billion in liabilities from wildfires that its equipment may have ignited in 2017 and 2018, including a wildfire last November that essentially wiped out the town of Paradise and killed 85 people.The company is also facing criticism for intentional blackouts that have left millions without power as it tries to limit wildfires during dry, windy conditions.
California officials and residents have expressed growing anger over the blackouts, which have left those without power struggling with to keep cellphones charged, find gas and withdraw cash. Businesses and schools were closed for days.
Some accused the company of instituting the blackouts to save money, but PG&E CEO Bill Johnson has said that the blackouts were “well planned and executed” and done “solely in the interest of public safety.”
PG&E’s Shareholders and Creditors Have Battled for Control of the Company
Governor Gavin Newsom on Friday threatened a possible takeover of the troubled utility unless it can emerge from bankruptcy ahead of next year’s wildfire season with a plan focused on safety. The company has said it prefers to work its way out of bankruptcy protection, but will need the help of government, insurance companies and investors.
The state’s largest utility on Thursday swung to a loss of $1.62 billion, after a profit of $564 million in the same period last year.
Newsom called Johnson into a closed-door meeting Tuesday.Since the utility’s bankruptcy filing in January, PG&E’s shareholders and creditors have battled for control of the company, putting forth competing plans in bankruptcy court that would maintain PG&E’s long-running setup as a for-profit company.
The state’s largest utility on Thursday swung to a loss of $1.62 billion, after a profit of $564 million in the same period last year.
That’s a per-share loss of $3.06, or $1.11 when one-time costs are removed. Revenue was $4.43 billion.
Shares in PG&E fell 5% in morning trading. A year ago, before the they were trading around $48 per share.
California Leaders Take Sides in Monumental Supreme Court Case on Homelessness
Housing /
2 hours ago
Man Sets Himself on Fire Outside Trump Hush Money Trial Court
U.S. /
14 hours ago
Real Estate Experts Talk Fresno’s Economic Future. Are Tough Times Ahead?
Economy /
15 hours ago
Unlocking the Secrets to Fresno State’s Superb Baseball Season
Sports /
16 hours ago
Get a 3D First Look at Merced’s High-Speed Rail Station Design
Events /
18 hours ago
California Court to Decide on Transgender Ballot Measure Wording
Politics /
18 hours ago
Rare House Vote Sees Ukraine, Israel Aid Advance as Democrats Join Republicans
Politics /
20 hours ago
The Pickle Flavor Frenzy and Its Rise in Food Trends
You might have noticed that the tangy taste of pickles has taken over more than just the condiment aisle. From pickle-flavored popcorn to pi...
Food /
2 hours ago
Categories
Latest
Videos
Food /
2 hours ago
The Pickle Flavor Frenzy and Its Rise in Food Trends
Housing /
2 hours ago
California Leaders Take Sides in Monumental Supreme Court Case on Homelessness
U.S. /
14 hours ago
Man Sets Himself on Fire Outside Trump Hush Money Trial Court
Economy /
15 hours ago
Real Estate Experts Talk Fresno’s Economic Future. Are Tough Times Ahead?
Sports /
16 hours ago
Unlocking the Secrets to Fresno State’s Superb Baseball Season
Economy /
2 days ago