Pacific Gas and Electric has announced that it will file for Chapter 11 protection before the end of the month as it faces $30 billion in potential liability costs related to their role in starting wildfires. The company already carries a heavy debt load of more than $18 billion.
A dozen of the fires that started in Northern California around October 8, 2017 have been blamed on PG&E’s electrical equipment, according to CAL FIRE investigators, who also are looking into power line equipment failures that may have caused the Camp Fire on November 8, 2018. Over 40 people died in the Northern California fires, and 86 perished in the Camp Fire which also destroyed more than 14,000 homes.
The bankruptcy process would put a halt to more than 750 civil suits brought by thousands of homeowners and insurance companies over the wildfires allegedly caused by PG&E’s equipment, some of it 100 years old. The suits would then be resolved in a bankruptcy proceeding.
PG&E supplies power and natural gas to approximately 5.2 million households in the northern three-fourths of California. The company also declared bankruptcy in 2001 which lasted until 2004.
State law requires the corporation to notify employees at least 15 days before any bankruptcy filing. Chief Executive Geisha Williams has stepped down after serving for less than two years, the company said on Sunday.
In a brief submitted to a federal court in December, the California Attorney General said PG&E could be prosecuted for murder, manslaughter, or lesser criminal charges if investigators determine that “reckless operation” of its power equipment caused any of the wildfires in which people were killed during the previous 15 months.