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PG&E took $ 2.5 billion from a California fire

Pacific Gas and Electric has claimed $ 2.5 billion in damages related to fires in northern California, sending lower shares.

The San Francisco-based program now estimates $ 6.2 billion to $ 6.3 billion in flame related costs, and third quarter financial results do not include the impact of last month's interruptions on customers designed to prevent fires during dry wind conditions.

PG&E, which sought Chapter 1

1 bankruptcy protection in January, lost $ 1.6 billion, or $ 3.06 a share, in the three months to September. On an adjusted basis that excludes fire costs, the utility earned $ 1.11 a share, dropping a $ 1.13 estimate from Wall Street analysts surveyed by Refinitive. Sales rose 1.1 percent to $ 4.43 billion, missing estimates of $ 4.75 billion.

Ticker Security Last Change Change%
PCG PG&E CORP. 6.53 -0.40 -5.71%

"We continue to make progress in our efforts to move quickly through the Chapter 11 process and remain focused on the fair and speedy resolution of requests by fire victims," PG&E CEO and President Bill Johnson said in a statement.

The Kinkade fire raged in Sonoma County in October. (AP Photo / Noah Berger)

"We also remain committed to the safe operation of our gas and electrical systems, and in particular to reducing the risk of fire in our communities. This work involves the last weeks shutting down the security supply in anticipation of dangerous meteorological conditions – a solution that we know is creating difficulties, but is only made in the interest of public safety. "


PG&E shares lost more than 83 percent of their value since November 8, 2018, when the campfire broke out, the deadliest and most devastating fire in California's Department of Forestry and Fire Protection has determined PG&E is responsible for the blast and more.In September, the utility reached an agreement for $ 11 billion in fire claims in 2017 and 2018.


Nerds in this utility are fighting the growing risk that their funds will be completely wiped out. In October, a federal insolvency judge ruled that PG&E did not have sole control over its reorganization and that a plan drawn up by bondholders run by the Elliott Management hedge fund and supported by California citizens with claims for damages against utilities, must be considered.

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