Earlier this month, the San Francisco-based utility revealed that it plans to file bankruptcy on Chapter 11 on January 29, saying it is facing extensive litigation and significant potential Northern California fire commitments in 2017 and 2018. "The company assessed its responsibility for the fire companies" could exceed $ 30 billion "according to a SEC 8-K filing from January 13.
Gov. Gavin Newsom said his office estimates that $ 17 billion of it The $ 30 billion figure is from Tubbs Fire in the wine country. The new governor said the figure raises questions about whether PG & E would file for bankruptcy. "" They [PG&E] will make that determination, "Newsom said. cannot make that provision for them. They have the right to make determination and we will respond accordingly. "
The governor said his goal is to ensure that the victims are made completely," the state has "safe, reliable and affordable service" does not pay the price of negligence "of PG & E established in previous fires.
Utilities in California are responsible for the so-called inverse condemnation, as well as for the negligence of fire and other harmful events caused by such things as power lines or other utilities. There are state regulations that require strict vegetation management practices of utilities, and they include standards to keep vegetation free of power lines.
Camp Fire ̵
"Cal Fire has completed its 2017 Tubbs Fire study and concluded that PG & E facilities did not cause the fire," PG & E said in a statement Thursday. "Regardless of today's announcement, PG & E is still facing extensive litigation, significant potential liabilities and a worsening financial situation that was further impaired by recent credit rating downgrades below the investment class."
The tool added, "Solving the legal obligations and financial challenges of 2017 and 2018 fires will be hugely complex and will require us to address more stakeholder interests, including thousands of fire victims and others who have already claimed and probably thousands of others we expect to make claim. "
Tubb's fire burned a total of 36 807 hectares and caused the destruction of entire neighborhoods in the city of Santa Rosa. The city and hundreds of residents have sued PG & E for the disaster.
In total, the Northern California fire in October 201 involved more than 170 blazes and charred at least 245,000 acres. Nearly 11,000 firefighters were involved in fighting with blazes, and help came from more than a dozen other states as well as Australia.