FILE PHOTO: A PG&E truck carrying an American Flag drives previous PG&E restore vans in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage
NEW YORK (Reuters) – Town of San Francisco has supplied to purchase PG&E Corp’s (PCG.N) energy traces and different electrical system infrastructure serving town for $2.5 billion, in line with the utility, which sought Chapter 11 chapter safety in January.
PG&E is predicted to file a reorganization plan in a U.S. chapter court docket in San Francisco this week that addresses its estimated $30 billion in liabilities from wildfires in California in 2017 and 2018, together with November’s Camp Fireplace, the deadliest and most harmful wildfire of the state’s fashionable historical past.
“All of us agree on the significance of continuous to serve the residents of San Francisco with protected, clear, inexpensive and dependable vitality,” PG&E stated in a press release offered by spokeswoman Karly Hernandez on Sunday.
“PG&E has been part of San Francisco for the reason that firm’s founding greater than a century in the past, and whereas we don’t consider municipalization is in the perfect pursuits of our prospects and stakeholders, we’re dedicated to working with the Metropolis and can stay open to communication on this subject,” the assertion added.
Representatives of the San Francisco Public Utilities Fee and the mayor’s workplace didn’t instantly reply to requests for remark.
The acquisition could be funded via a municipal energy bond handed by voters final yr and could be paid off via prospects’ electrical payments, in line with the San Francisco Chronicle, which additionally famous the deal would create California’s third-largest government-owned electrical utility, after the Los Angeles Division of Water and Energy and the Sacramento Municipal Utility District.
Company reorganization plans usually want widespread assist from collectors, and debtors can spend months getting the required backing. PG&E’s plan should be accepted by U.S. Decide Dennis Montali for the corporate to emerge from Chapter 11 chapter reorganization.
On June four, the San Francisco Public Utilities Fee stated it had employed an adviser to discover a attainable acquisition of the corporate’s distribution belongings.
For the reason that starting of the yr, PG&E’s inventory has plunged 57.1%.
Reporting by Stephen Culp; Modifying by Lisa Shumaker and Peter Cooney