Pacific Gas & Electric CEO quits following the deadly California wildfires that left 86 dead as the company prepares to declare BANKRUPTCY owing billions in compensation
- Officials are investigating whether PG&E’s equipment started the Camp wildfire in northern California
- The blaze leveled the town of Paradise, killed at least 86 people and destroyed close to 15,000 homes
- The company is reportedly considering seeking financial shelter in bankruptcy court with potential liabilities reaching into the tens of billions
- Last week its stock price nose-dived after it said in November that it could be liable for billions of dollars in excess of its insurance coverage from the fires
Geisha Williams, the first Latina CEO of a Fortune 500 company, steps down as PG&E faces possibly billions in liabilities and possible murder charges
The CEO of Pacific Gas and Electric resigned Sunday and employees could learn this week if the utility will declare insolvency while facing billions of dollars in liability over its role in recent California wildfires.
PG&E released a statement Sunday thanking Geisha Williams for her service. The board of directors chose John Simon as interim CEO.
‘While we are making progress as a company in safety and other areas, the board recognizes the tremendous challenges PG&E continues to face,’ the company said. ‘We believe John is the right interim leader for the company while we work to identify a new CEO.’
Pacific Gas & Electric, California’s largest utility company is considering bankruptcy protection in the face of potentially crippling liability damages from a spate of recent wildfires. No cause has been determined for the source of California’s ‘Camp Fire,’ but PG&E reported an outage around the time and place the fire was ignited
To prevent wildfires, Pacific Gas & Electric Co. should re-inspect its entire electric grid and cut off power during certain wind conditions regardless of the inconvenience to customers or loss of profit, a U.S. judge proposed last week
PG&E is in discussions with lenders about a financing package worth up to $5 billion. It would allow the company to continue operating during Chapter 11 bankruptcy proceedings.
Under a new state law, PG&E must tell its employees at least 15 days before a change of control in the company – including a bankruptcy filing, the San Francisco Chronicle reported. That notice may come as soon as Monday.
State fire investigators blamed the utility’s power lines for causing a number of California wildfires in October 2017.
PG&E has also been told that it should re-inspect its entire electric grid and cut off power during certain wind conditions regardless of the inconvenience to customers or loss of profit.
The company is widely reported to be considering filing for bankruptcy protection as its stock price has nose-dived after it said in November that it could be liable for billions of dollars in excess of its insurance coverage from fires both last year and in 2017.
John Simon, the utility’s executive vice president and general counsel, will serve as interim chief executive while PG&E searches for a permanent leader
A judge has ruled that they utility company should turn off the power to prevent its wires from causing any wildfires in the 2019 fire season.
‘This will likely mean having to interrupt service during high-wind events (and possibly at other times) but that inconvenience, irritating as it will be, will pale by comparison to the death and destruction that otherwise might result from PG&E-inflicted wildfires,’ Judge William Alsup said.
He gave PG&E until January 23 to respond to his proposal. PG&E said it was reviewing Alsup’s order.
‘We are committed to complying with all rules and regulations that apply to our work, while working together with our state and community partners and across all sectors and disciplines to develop comprehensive, long-term safety solutions for the future,’ the company said.
PG&E is in crisis after the Camp Fire killed at least 86 people in Northern California last year
He also asked the utility to explain any role it may have played in a massive wildfire that destroyed the town of Paradise and killed at least 86 people.
Investigators have not determined the cause of the wildfire that began Nov. 8 but speculation has centered on PG&E, which reported an outage around the time and place the fire ignited.
Alsup noted in Wednesday’s order that state fire investigators have determined PG&E caused eighteen wildfires in 2017, twelve of which they referred for possible criminal prosecution.
The judge proposed PG&E remove or trim all trees that could fall onto its power lines, poles or equipment in high-wind conditions and document its inspections and work. He accused the utility of a ‘history of falsification of inspection reports.’
He is also considering ordering the utility during the 2019 wildfire season to supply electricity only to those parts of its electrical grid it has determined to be safe under wind conditions at the time.
PG&E cut power to tens of thousands of Northern California customers in October because of high fire danger, prompting complaints and demands for reimbursement from some customers.