PG&E has officially filed for bankruptcy protection ahead of liabilities over the deadly 2018 forest fire. The blaze, which killed 86 people and caused monumental damage to property, was determined to have been caused by a PG&E power line that had been placed too close to nearby trees.
The Pacific Gas & Electric Company is now facing massive liabilities totaling over $30 billion. They are determined to keep their lights on, however, and continue to serve customers and run operations as per usual. The company provides electricity and natural gas to millions of customers in Northern and Central California.
The lights will stay on in PG&E offices, and Interim Chief Executive John Simon has reassured customers that the company is not “going out of business” in a letter sent out earlier this month. The gas and electricity giant has gone through a hectic few years. Investigators had originally cleared PG&E of any liabilities resulting from a 2017 fire, but they are still facing lawsuits over property that was destroyed in that blaze as well. The company warned that it could potentially face liabilities that exceed its insurance coverage if it is found responsible for the 2018 fire that resulted in dozens of deaths.
PG&E will now seek court approval for $5.5 billion in debtor-in-possession financing from several banks including Bank of America. The $5.5 billion figure lines up with the company’s annual spending.
