In crisis mode, California utility files for bankruptcy

PG&E says a Chapter 11 filing is ‘the only viable option’ as it faces up to $30 billion in liability claims from the 2017 and 2018 wildfires. Investors had pushed a $4 billion alternative plan.

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Amid an investigation into whether its equipment started California’s deadliest wildfire, Pacific Gas and Electric has filed for bankruptcy.

On Tuesday, the utility company, which supplies natural gas and power to 16 million customers,

filed for Chapter 11 to protect itself from liability claims after the two worst wildfires in California’s history. The claims from the 2017 and 2018 wildfires are estimated to reach as high as $30 billion.

The company says filing bankruptcy is necessary, despite its being offered alternatives.

The New York Times reported:

PG&E, which faces damage claims estimated at tens of billions of dollars for wildfires started by its equipment, said this month that bankruptcy was its “only viable option.”

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