PG&E to file for Chapter 11 bankruptcy; CEO resigns

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PG&E announced that it is preparing to file Chapter 11 bankruptcy as it deals with lawsuits following devastating wildfires in 2017 and 2018. The announcement comes one day after the utility's CEO resigned. (KGO-TV)

PG&E announced Monday that it is preparing to file Chapter 11 Bankruptcy as it deals with lawsuits following devastating wildfires in California the last two years.

The announcement comes one day after the utility's CEO resigned.

"The company does not expect any impact to electric or natural gas service for its customers as a result of the Chapter 11 process. PG&E remains committed to assisting the communities affected by wildfires in Northern California, and its restoration and rebuilding efforts will continue," the company said in a statement.

It does appear that the company is preparing for potential liabilities from the roles it may have played in the 2017 Tubbs Fire and 2018 Camp Fire.

Consumer advocates are concerned that customers could be picking up the bill.

"It's completely disingenuous for PG&E to pretend that its only way out is customers. They're not a public company. We didn't make the decisions that led to this and we didn't share the profits that they've been taking in all along while they've neglected their tree-trimming," said Mindy Spatt, with Utility Reform Network.

PG&E employees will continue to get paid and receive health care benefits during the Chapter 11 process.

On Sunday, PG&E CEO Geisha Williams stepped down. In the meantime, John Simon will serve as Interim Chief Executive Officer. Simon has been with the company since 2007, and served as the Executive Vice President and General Counsel since 2017.

Barricades have been set up in front of PG&E's offices in San Francisco. Security guards had no comment on why the barricades were put up.
Related Topics:
businessPG&Ebankruptcywildfirecaliforniabrush fireNorthern California
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