Pacific Gas and Electric Company incurred $ 2.5 billion in damages related to fires in Northern California and sent shares lower.
The San Francisco-based utility now forecasts $ 6.2 billion to $ 6.3 billion in costs this year related to blazes, and its third-quarter financial results did not include the impact of last month's disruption to millions of customers who were designed to prevent fire in dry wind conditions.
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PG&E, which sought Chapter 11 bankruptcy protection in January, lost $ 1.6 billion, or $ 3.06 per share, over the three months up to and including September. On an adjusted basis, which excludes costs related to the fires, the tool earned $ 1
"We continue to make progress in our effort to move quickly through the Chapter 11 process, and are still focused on a fair and swift resolution of the requirements. to wild victims, "PG&E CEO and President Bill Johnson said in a statement.
"We are also dedicated to the safe operation of gas and electrical systems, and especially to reducing the risk of fire in our communities. This work has involved the last few weeks turning off the power to safety pending dangerous weather conditions – a decision we know is causing adversity, but is made solely for the sake of public safety. "
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PG&E shares have lost more than 83 percent of their value since November 8 2018, when Camp Fire, the deadliest and most devastating wildfire in California history erupted. The California Department of Forestry and Fire Protection has determined that PG&E was responsible for that fire and others. In September, the tool reached a settlement of $ 11 billion for claims related to wildfires in 2017 and 2018.
Shareholders in the tool have an increasing risk that their ownership stake will be completely wiped out. A federal bankruptcy judge ruled in October that PG&E does not have the right to solely control the reorganization, and that a plan was drawn up by bondholders, led by hedge fund Elliott Management and backed by California citizens, with conditions on fire damage to the tool. , must be considered.