PG&E Corp (NYSE: PCG)
PG&E Corp shares fell sharply before in premarket hours Monday after the California-based utility announced plans to begin voluntary bankruptcy proceedings under Chapter 11 on or about January 29. The company faces an estimated $30 billion exposure to liability for damages related to the 2017 and 2018 wildfires that swept across Northern California in 2017 and 2018.
In a statement, the company said it is “committed to continuing to make investments in system safety as it works with regulators, policymakers and other key stakeholders to consider a range of alternatives to provide for the safe delivery of natural gas and electric service for the long-term in an environment that continues to be challenged by climate change.”
“PG&E expects that the Chapter 11 process will, among other things, support the orderly, fair and expeditious resolution of its potential liabilities resulting from the 2017 and 2018 Northern California wildfires, and will assure the Company has access to the capital and resources it needs to continue to provide safe service to customers,” the statement continued.
PG&E expects employees to continue to receiving their payments, thanks to a $5.5 billion of committed debtor-in-possession financing. The company also said it does not expect the bankruptcy to have any effect on its electric or natural gas business.
On Sunday, PG&E released a statement saying that CEO Geisha Williams has left the company. General counsel John Simon is expected to serve as the interim chief executive. Richard C. Kelly, Chairman of PG&E said, “While we are making progress as a company in safety and other areas, the board recognizes the tremendous challenges PG&E continues to face.”
Shares of the company were marked 52% lower before the opening bell and changing hands at $8.52 apiece, on track to open at their worst level since August 2002. The stock has lost more than 62% over the last three months through Friday.
PG&E Corp. Profile
PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to residential, commercial, industrial, and agricultural customers in northern and central California, the United States.
The company’s electricity distribution network consists of approximately 107,200 circuit miles of distribution lines, 59 transmission switching substations, and 605 distribution substations; and electricity transmission network comprises approximately 19,200 circuit miles of interconnected transmission lines and 92 electric transmission substations.
Its natural gas system consists of approximately 42,800 miles of distribution pipelines, approximately 6,400 miles of backbone and local transmission pipelines, and various storage facilities. The company operates various electricity generation facilities, such as nuclear, hydroelectric, fossil fuel-fired, and solar. PG&E Corporation was founded in 1905 and is based in San Francisco, California. – Yahoo Finance