PG&E Votes To File For Chapter 11 Bankruptcy
SAN FRANCISCO (CBS SF) — The Pacific Gas and Electric board of directors voted late Monday evening to file for Chapter 11 bankruptcy protection.
PG&E said it would officially file at midnight Tuesday.
he filing will enable the company to freeze its debts and continue operations, while it develops a financial reorganization plan.
California State Senator Bill Dodd, whose district includes areas in Napa and Sonoma counties that were heavily damaged in the Oct. 2017 wildfires, issued a statement after PG&E officials confirmed that they would file for bankruptcy.
“Given its track record of obfuscation and mismanagement, I’m not surprised PG&E claims it can no longer meet its financial obligations,” the statement read. “It’s extremely disappointing and underscores the need for change at PG&E in both its leadership and culture. Wildfire victims shouldn’t have to deal with the uncertainty this causes, which in many respects re-victimizes them.”
An advocacy group called The Utility Reform Network (TURN) worries that rate payers will be forced to foot part of the bill.
“The message to customers is really bad here. It’s that, we’re more concerned with our shareholders than we are with our customers,” said TURN’s Mindy Sprat. “We don’t care how high your bills go. We are going to do our best to make them higher. And we are going try and get out of the accountability that the federal court is proposing.”
Spratt says she suspects the timing of the bankruptcy filing is linked to a federal court hearing scheduled for Wednesday about whether PG&E has violated the terms of its probation from earlier safety lapses.
https://sanfrancisco.cbslocal.com/2019/01/28/pge-votes-to-file-for-chapter-11-bankruptcy/
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