California utility filing for bankruptcy after wildfires

The Pacific Gas and Electric Company said Monday it will file for bankruptcy in the face of massive potential liabilities for deadly California wildfires in recent years. CEO Geisha Williams resigned Sunday, and the share price of the publicly traded utility plunged by 50 percent Monday morning. PG&E provides natural gas and electricity to about 16 million people in most of the northern two-thirds of California. State fire investigators have blamed the company for wildfires that broke out in Northern California in October 2017. The company faces potential liability for wildfires in 2018 affecting the same region.

PG&E said Monday it plans to file for Chapter 11 bankruptcy protection after the mandatory 15-day advance notice period. “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,” said interim CEO John R. Simon. The company said it will continue providing service to its customers as it restructures.