PG&E: What Bankruptcy Means for the Utility

Action News Now reporter Christina Vitale spoke with a lawyer to break down what bankruptcy means for the company.

Posted: Jan 14, 2019 5:25 PM

BUTTE COUNTY, Calif. - Action News Now reporter Christina Vitale spoke with a lawyer to break down what bankruptcy means for the company.

PG&E is facing liabilities that reach $30 billion in damages from the Camp Fire. 

The business is now preparing for reorganization under Chapter 11. 

This means that PG&E will continue operating its gas and electric service to customers. 

Chico Lawyer Adam Corrells said its still pre-mature in determining what this means for PG&E moving forward. 

In terms of reorganization Sorrells said we can look back at their file for bankruptcy in 2001. 

At that time, they were about $9 billion in debt, which is much less than the debt they face currently. 

"There's going to be electricity that's not going to go away," Sorrells said. "If necessary, the government will step in. I know that Governor Gavin Newsom is paying very close attention to this and is going to make sure that nobody loses their power if there's not some cataclysmic problem and so I think it's more going to be an issue for people that are investors and of course for victims of the Camp Fire and the various other fires across the state." 

PG&E released the following statement in regards to the potential filing: 

"We believe a court-supervised process under Chapter 11 will best enable PG&E to resolve its potential liabilities in an orderly, fair and expeditious fashion. The process also will enable PG&E to access the capital and resources we need to continue providing our customers with safe services and investing in our systems and infrastructure." 

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 516851

Reported Deaths: 9441
CountyConfirmedDeaths
Los Angeles1938774702
Orange37813651
Riverside37011695
San Bernardino33432418
San Diego29883565
Kern20651144
Fresno15083138
San Joaquin11885180
Alameda11524189
Santa Clara10794191
Sacramento10122145
Tulare9745189
Imperial9448222
Stanislaus9221112
Contra Costa8033127
Ventura734476
San Francisco691661
Santa Barbara616760
San Mateo5683119
Marin509270
Monterey492430
Kings445356
Merced428550
Solano361137
Sonoma311339
Madera194330
Placer192516
San Luis Obispo190216
Yolo157242
Santa Cruz11524
Butte9417
Napa8888
Sutter7976
San Benito6474
El Dorado6371
Lassen6260
Yuba5024
Shasta3909
Glenn3321
Colusa3314
Mendocino3229
Nevada2991
Tehama2341
Humboldt2334
Lake2081
Mono1451
Tuolumne1412
Amador1260
Calaveras1251
Del Norte880
Siskiyou730
Inyo611
Mariposa572
Plumas330
Trinity50
Alpine20
Modoc20
Sierra20
Unassigned00
Chico
Clear
81° wxIcon
Hi: 98° Lo: 62°
Feels Like: 81°
Oroville
Clear
75° wxIcon
Hi: 99° Lo: 62°
Feels Like: 75°
Paradise
Clear
81° wxIcon
Hi: 91° Lo: 61°
Feels Like: 81°
Chester
Clear
69° wxIcon
Hi: 83° Lo: 56°
Feels Like: 69°
Red Bluff
Clear
83° wxIcon
Hi: 99° Lo: 65°
Feels Like: 83°
Willows
Clear
81° wxIcon
Hi: 101° Lo: 60°
Feels Like: 81°
It was a slightly cooler day for northern California today, but a more significant cooling is arriving tomorrow, along with a slight chance for showers and thunderstorms over the mountains of northwest California.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events