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PG&E plunges 21% amid disclosure of an 'electric incident' just before wildfire
PG&E plunges 21% amid disclosure of an 'electric incident' just before wildfire
• Shares of utility PG&E fell 21 percent on Wednesday after the company said its insurance wouldn't cover its cost if it's found responsible for the Camp Fire.
• "If the Utility's equipment is determined to be the cause, the Utility could be subject to significant liability in excess of insurance coverage," the company said.
• The utility company also discloses that it submitted an "electric incident report" to the California Public Utilities Commission on Nov. 8, just before the wildfire.
Thomas Franck | @tomwfranck
Published 7 Hours Ago Updated 35 Mins Ago
Shares of utility PG&E fell 21 percent on Wednesday after the company said that if its equipment is responsible for the "Camp Fire" burning in Northern California, the cost of the damage would exceed its insurance coverage and harm its financial health.
"While the cause of the Camp Fire is still under investigation, if the Utility's equipment is determined to be the cause, the Utility could be subject to significant liability in excess of insurance coverage," the company said in a document filed with the Securities and Exchange Commission on Tuesday. That would "have a material impact on PG&E Corporation's and the Utility's financial condition, results of operations, liquidity, and cash flows."
PG&E, owner of Pacific Gas & Electric Co., said its subsidiary has drawn down $3 billion from its credit line in anticipation of a fire-related liability. At least 48 people have died in the fire and a record 7,600 homes and other structures have been destroyed, according to official estimates. Hundreds of people remain missing.
"With these borrowings, the entire credit facility has been drawn and PG&E now has $3.5 billion of cash on its balance sheet," Citi analyst Praful Mehta wrote in a note Wednesday. "We think the primary driver could be a concern around a downgrade to a non-investment grade credit rating and the liquidity requirements as a result of the downgrade."
....
• Shares of utility PG&E fell 21 percent on Wednesday after the company said its insurance wouldn't cover its cost if it's found responsible for the Camp Fire.
• "If the Utility's equipment is determined to be the cause, the Utility could be subject to significant liability in excess of insurance coverage," the company said.
• The utility company also discloses that it submitted an "electric incident report" to the California Public Utilities Commission on Nov. 8, just before the wildfire.
Thomas Franck | @tomwfranck
Published 7 Hours Ago Updated 35 Mins Ago
Shares of utility PG&E fell 21 percent on Wednesday after the company said that if its equipment is responsible for the "Camp Fire" burning in Northern California, the cost of the damage would exceed its insurance coverage and harm its financial health.
"While the cause of the Camp Fire is still under investigation, if the Utility's equipment is determined to be the cause, the Utility could be subject to significant liability in excess of insurance coverage," the company said in a document filed with the Securities and Exchange Commission on Tuesday. That would "have a material impact on PG&E Corporation's and the Utility's financial condition, results of operations, liquidity, and cash flows."
PG&E, owner of Pacific Gas & Electric Co., said its subsidiary has drawn down $3 billion from its credit line in anticipation of a fire-related liability. At least 48 people have died in the fire and a record 7,600 homes and other structures have been destroyed, according to official estimates. Hundreds of people remain missing.
"With these borrowings, the entire credit facility has been drawn and PG&E now has $3.5 billion of cash on its balance sheet," Citi analyst Praful Mehta wrote in a note Wednesday. "We think the primary driver could be a concern around a downgrade to a non-investment grade credit rating and the liquidity requirements as a result of the downgrade."
....
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