By: Washington Times |
Pacific Gas & Electric Co. said this week it will file for bankruptcy, raising concern that rates for electricity and gas will rise and victims of California wildfires who are suing the nation’s largest utility won’t get all the money they may be owed.
Here are some key things to know about the impact of the company’s financial situation:
WHAT DOES BANKRUPTCY MEAN?
PG&E; says it can’t afford at least $30 billion in expected costs related to California’s deadly 2017 and 2018 wildfires. Filing for Chapter 11 bankruptcy will allow the company to hold off creditors and keep providing electricity and natural gas service while it gets its finances in order.
Richard Kelly, chairman of PG&E;’s board of directors, said the reorganization allowed under Chapter 11 is “the only viable option to address the company’s responsibilities to its stakeholders.”