The Latest: Victims disappointed with PG&E bankruptcy plan
SAN FRANCISCO (AP) — The Latest on PG&E’s bankruptcy proceeding (all times local):
A lawyer representing wildfire victims says she’s disappointed by Pacific Gas & Electric’s plan to offer nearly $18 billion to settle fire-related claims and exit bankruptcy.
The company unveiled the plan Monday, outlining how it intends to repay billions in liabilities from recent wildfires in Northern California caused by its electrical equipment.
The utility proposes offering nearly $18 billion to wildfire victims, insurance companies and public agencies and governments that battled the wildfires and dealt with their aftermath.
Cecily Dumas, a lawyer for the fire victims, said she’s disappointed that the amount must be shared among her clients, insurance companies and others.
PG&E Corp. has released a plan to offer nearly $18 billion to wildfire victims, insurance companies and cities and public entities in California that battled wildfires sparked by electrical equipment.
The preliminary plan was filed in bankruptcy court on Monday.
PG&E sought bankruptcy protection in January because it said it could not afford an estimated $30 billion in damages from recent deadly wildfires caused by company equipment.
The company says in court papers that it could raise more than $30 billion in debt and equity financing from the largest banks in the nation. The company said the strategy will not result in rate increases for its customers.
San Francisco officials are offering to buy Pacific Gas & Electric’s power lines and other infrastructure in the city for $2.5 billion.
Mayor London Breed and City Attorney Dennis Herrera presented the offer in a letter sent to the utility Friday.
Breed said in a statement Sunday the offer was “competitive, fair and equitable” and will offer financial stability to PG&E. It doesn’t include PG&E’s natural gas system in the city.
The utility is set to submit Monday its plan for getting out of bankruptcy, which will include how it intends to repay billions in liabilities from wildfires in 2017 and 2018.
PG&E said in a statement that selling assets to San Francisco wasn’t in the best interest of its customers and stakeholders.