PG&E Officially Files for Chapter 11 Bankruptcy

Pacific Gas and Electric has filed for bankruptcy protection after coming under pressure from billions of dollars in claims tied to deadly wildfires.

Posted: Jan 29, 2019 2:33 AM
Updated: Jan 29, 2019 4:28 PM

(CNN) - Pacific Gas and Electric has filed for bankruptcy protection after coming under pressure from billions of dollars in claims tied to deadly wildfires.

California's largest power company said in a statement Tuesday that it had submitted a Chapter 11 bankruptcy filing in the Northern District of California.

PG&E said it was committed to maintaining services for customers during the bankruptcy process.

John Simon, the company's Interim CEO, said he would work "to create a more sustainable foundation for the delivery of safe, reliable and affordable service."

"We have heard the calls for change and we are determined to take action throughout this process to build the energy system our customers want and deserve," he said in the statement.

PG&E has been linked to a series of wildfires in California, including the Camp Fire, which caused 86 deaths and destroyed 14,000 homes, along with more than 500 businesses and 4,300 other buildings.

PG&E announced on January 14 that it intended to file for bankruptcy, but it had to wait 15-day period required by California law.

The company needs to use the bankruptcy process — which will allow it to shed some of its debt — to pay for damages and stay in business.

PG&E said Tuesday it was seeking approval for a $5.5 billion debtor-in-possession financing agreement. Previously, it said in a filing that it has only about $1.5 billion in cash and cash equivalents on hand.

The company has cited at least $7 billion in claims from the Camp Fire. It is believed that the Camp Fire was started when a PG&E power line came in contact with nearby trees.

PG&E reported "an outage" on a transmission line in the area where the blaze began, about 15 minutes before it started. Within the massive burn area, PG&E found power equipment and a fallen power pole riddled with bullet holes, according to a letter it sent to regulators. The company also reported that it found a downed line with tree branches on it.

In addition, a series of wildfires in 2017 — many of which were also blamed on PG&E — caused $10 billion in damages and 44 deaths. In 11 of those fires, state investigators found the company violated codes regarding brush clearance near its power lines or had made related violations.

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 264681

Reported Deaths: 6373
CountyConfirmedDeaths
Los Angeles1150243487
Riverside19450479
Orange16854366
San Diego16726387
San Bernardino14922269
Imperial7039114
Alameda6855140
Fresno611077
Santa Clara5273161
Kern524582
Tulare4627136
San Joaquin447455
Sacramento423669
San Francisco377650
Contra Costa366281
San Mateo3536108
Santa Barbara326129
Ventura324047
Marin271921
Stanislaus266045
Kings263432
Monterey206415
Solano147625
Sonoma135911
Merced127211
Placer87711
San Luis Obispo7012
Yolo67726
Madera5785
Santa Cruz4573
Napa3764
San Benito2732
Sutter2523
Lassen2420
El Dorado2260
Butte2063
Shasta1545
Humboldt1444
Nevada1291
Glenn1220
Yuba1061
Tehama881
Lake871
Mendocino850
Colusa700
Del Norte581
Calaveras530
Mono451
Tuolumne430
Inyo331
Amador310
Siskiyou310
Mariposa271
Plumas110
Alpine20
Trinity20
Sierra10
Unassigned00
Chico
Clear
80° wxIcon
Hi: 95° Lo: 59°
Feels Like: 80°
Oroville
Clear
80° wxIcon
Hi: 96° Lo: 60°
Feels Like: 80°
Paradise
Clear
80° wxIcon
Hi: 88° Lo: 59°
Feels Like: 80°
Chester
Clear
65° wxIcon
Hi: 79° Lo: 50°
Feels Like: 65°
Red Bluff
Clear
81° wxIcon
Hi: 97° Lo: 62°
Feels Like: 81°
Willows
Clear
80° wxIcon
Hi: 99° Lo: 59°
Feels Like: 80°
We began the new week with plenty of sunshine and heat around northern California, but more heat, more wind and more potential fire danger are ahead for our area.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events