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PG&E files for bankruptcy in the wake of deadly wildfires – Chico Enterprise-Record


PG&E filed for a Chapter 11 bankruptcy on Tuesday, staggered by billions of dollars in debts and liabilities in the wake of a series of deadly wildfires that torched Northern California in 2017 and 2018, and a key state lawmaker said the focus must now be on protecting customers, fire victims and company workers.

“It’s now time for the state Legislature and the governor to step up and be counted,” state Sen. Jerry Hill, a Democrat who represents parts of Santa Clara County and San Mateo County, said Tuesday. “There has to be some backstop, some protection mechanism in place to guarantee that ratepayers, fire victims and employees are not harmed by the final restructuring of PG&E.”

San Francisco-based PG&E listed $51.69 billion in debts and $71.39 billion in assets, according to the filing with the U.S. Bankruptcy Court in Northern California.

“We are not ‘going out of business,’ and we expect that there will be no disruption to the services you expect from us as a result of the Chapter 11 process,” PG&E stated in a post on its website to explain the bankruptcy.

However, the bankruptcy filing could lead to higher monthly power bills for PG&E customers, depending on the plan for financial reorganization that is approved by the bankruptcy judge and eventually reviewed by the state Public Utilities Commission, according to a one-time member of the powerful state regulatory agency.

“We can’t have any confidence that the PUC will protect ratepayers from higher monthly bills as a result of this bankruptcy,” Loretta Lynch, a former PUC commissioner, told this news organization.

Plus, people who are victims of the infernos that torched the North Bay Wine Country and nearby regions in 2017, as well as those who were victimized by wildfires that roared through Butte County in 2018 will likely find that their liability claims against PG&E could take a back seat to the financing package that PG&E is seeking to help it operate during the bankruptcy.

PG&E filed a motion to gain bankruptcy court approval for $5.5 billion in a funding package known as debtor-in-possession financing, PG&E stated in a prepared release. That funding is being provided by a consortium of large banks.

“The banks providing the financing have first dibs on being paid back,” Lynch said. “That means the fire victims, the company’s workers and the ordinary creditors will be placed at a disadvantage to be paid back and compensated.”



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