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Sector
Utilities
Size
Large Cap
Market Cap £4.18bn
Enterprise Value £29.87bn
Revenue £13.37bn
Position in Universe th / 6853

California regulator proposes record $2.14 bln fine on PG&E over wildfires

Fri 28th February, 2020 7:23am
Feb 28 (Reuters) - California's utilities regulator has
proposed an increased $2.14 billion fine on PG&E Corp  PCG.N 
for its role in causing the devastating 2017 and 2018 wildfires
in Northern California.
    The decision raises the penalty by $462 million and would be
the largest ever imposed, the California Public Utilities
Commission (CPUC) said. 
    It would become final if PG&E agrees within 20 days, and
will modify a multi-party settlement reached by the company with
the CPUC and union representatives in December.  urn:newsml:reuters.com:*:nL4N28S099
    The new settlement also requires that potential tax savings
in excess of $500 million be applied to the benefit of PG&E's
customers, CPUC said.
    PG&E did not respond to Reuters' requests for comment but
told local outlet San Francisco Chronicle that it was
"disappointed" by the decision.      
    The San-Francisco based utility filed for Chapter 11
bankruptcy protection in January last year, citing potential
liabilities in excess of $30 billion from major wildfires
sparked by its equipment in 2017 and 2018.
    State fire investigators in May determined that PG&E
transmission lines caused the deadliest and most destructive
wildfire on record in California, the wind-driven Camp Fire that
killed 85 people in and around the town of Paradise in 2018.
    Earlier this month, the company proposed an updated
reorganization plan, aimed at addressing concerns raised by
California Governor Gavin Newsom, who criticized its previous
plan for lacking major changes to governance and tougher safety
enforcement mechanisms mandated under a recent state wildfire
statute.  urn:newsml:reuters.com:*:nL1N2A1042  urn:newsml:reuters.com:*:nL2N28O003
    A U.S. bankruptcy judge in December approved PG&E's $13.5
billion settlement with victims of Californian wildfires.
    The company needs to exit bankruptcy by June 30 to
participate in a state-backed wildfire fund that would help
reduce the threat to utilities from wildfires.  urn:newsml:reuters.com:*:nL1N28R164

 (Reporting by Bhargav Acharya in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Bhargav.Acharya@thomsonreuters.com; Outside U.S.
+918061822589; Reuters Messaging:
Bhargav.Acharya.thomsonreuters.com@reuters.net))
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