PG&E Update: Utility Cleared Of Liability In Tubbs Wildfire

PG&E (PCG.F) has been cleared in the 2017 Tubbs Fire by the California Department of Forestry and Fire Protection (Cal Fire).

After an investigation, Cal Fire concluded the PG&E facilities did not cause the Tubbs wildfire, which killed 22 people and destroyed 5,636 properties. Cal Fire said the Tubbs Fire was caused by a private electrical system and not PG&E equipment.

PG&E said in a statement that regardless of having no liability in the 2017 Tubbs wildfire disaster, it still faces “extensive litigation, significant potential liabilities and a deteriorating financial situation.”

PG&E previously announced that it would file Chapter 11 bankruptcy by Jan. 29. Since the announcement by the Cal Fire, PG&E has not revised its bankruptcy plans. However, its liabilities for the wildfires were significantly cut with the conclusion by Cal Fire that it had no involvement in the cause of the Tubbs Fire. The company still faces a question as to whether it was responsible for the 2018 Camp Fire wildfire.

Cal Fire did find PG&E’s equipment responsible for other fires in California, including the Redwood Fire and Cascade Fire, both of which took place in 2017. California Gov. Gavin Newsom estimated that the liability of the Tubbs Fire is $17 billion of the total $30 billion figure that has been estimated for the damages of the wildfires, CNBC reported.

“Without question, the loss of life, homes and businesses during these devastating wildfires is heartbreaking, and we remain focused on helping affected communities recover and rebuild,” the company said in a statement.

“The safety of our customers and the communities we serve is our most important responsibility, and we are committed to assessing our infrastructure to further enhance safety and help protect all of the customers we serve from the ever-increasing threat of wildfires.”

PG&E is continuing to enhance and expand its Community Wildfire Safety Program to reduce the risk of wildfires in the future.

Yahoo News reported PG&E shares soared on Thursday, a half-hour before the announcement that cleared PG&E from any responsibility in the Tubbs Fire – the second most destructive fire in the state’s history.

Shares of PG&E were up 54.15 percent as of 10:10 a.m. EST on Friday.