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PCG PR H - Pacific Gas And Electric Co News Story

$22.31 0.0  0.0%

Sector
Utilities
Size
Large Cap
Market Cap £4.20bn
Enterprise Value £30.02bn
Revenue £13.44bn
Position in Universe th / 6856

Reuters Insider - PG&E shares plunge on bankruptcy worries

Tue 8th January, 2019 2:43pm
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_2d0fx6fc&referenceId=tag:reuters.com,2019:newsml_OV9W58TJF_930&pageId=ReutersNews
Source: Reuters Insider

Description: PG&E's shares fell after sources said the California utility is
exploring filing for bankruptcy because of potential liabilities from
wildfires. Fred Katayama reports.
Short Link: https://reut.rs/2LXk18b

Video Transcript:

PG&E shares plunged after sources said the California utility is considering
filing for bankruptcy protection. Analysts estimate it's facing between $24
billion to $30 billion in liabilities from wildfires. They also say the only
thing that could save it is new legislation that would pass costs on to
customers. Morningstar's Director of Utilities Research Travis Miller.

The actual filing, we think, is a worst case scenario. It is possible, but we
don't think it's likely given the specific circumstances right now. PG&E's
financial health is fine for the time being. It's just a matter of when the
liabilities and how much the liabilities are related to the fires.

A deadly wildfire in California in November has all but obliterated the
mountain community of Paradise. While the cause of the fire is still being
investigated, PG&E reported equipment problems near the origin of the fire
around the time it began. Guggenheim Partners Managing Director of North
America Power and Utilities Shahriar Pourreza,

This is probably posturing, in our viewpoint, at a minimum at this juncture
because right now you're in a situation where policymakers are getting
together and they're looking at forming legislation to account for not only
the 2018 fires but also the 2017 fires as well.

The company did not respond to a request for comment
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