PG&E maxes out revolving credit as wildfire liabilities loom

“But financial analysts noted that the move could be a precursor to a decision to file for bankruptcy protection, given PG&E’s exposure to as much as $15 billion in wildfire liabilities from last year’s devastating wildfires, and the potential that it will be found at fault for starting the Camp Fire last week.

PG&E shares have lost nearly half their value since the Camp Fire broke out last week, from nearly $50 last Wednesday to as low as $27 in Wednesday morning trading. The company reported a $1 billion net loss in the second quarter of this year, driven by nearly $1.6 billion in wildfire costs, and net income of $550 million for the third quarter.

In 2017, state investigations found that PG&E lines were the cause of several fires that killed at least 15 people and razed over 5,000 homes last fall. But state fire investigators have not yet determined the utility’s culpability in the Tubbs Fire, which killed 23 people and destroyed nearly 5,600 structures in California wine country, where losses could top $10 billion.”

Click here to read more from Green Tech Media.

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