PG&E stock took another hit yesterday falling another 40% closing at $6.91 a share. Investors have received two surprises this week, first with the bankruptcy announcement Monday and yesterday the announcement that the utility would miss interest payment of 21.6 million dollars on debt of 18 billion dollars. Finally, a board member, Roger Kimmel tendered his resignation. S&P downgraded the utility adding more speculation that the bankruptcy process could be very difficult. In the meantime, PG&E assures all customers that electricity would not be interrupted during this uncertain business climate period.
The Northern California County where a deadly wildfire killed 86 people last year sued Pacific Gas & Electric Co. yesterday, a day after the utility announced it will file for bankruptcy.
Butte County’s lawsuit blames the utility for the wildfire that sparked Nov. 8 and “effectively eradicated” the city of Paradise, California, population 27,000. The blaze destroyed nearly 15,000 homes and is the deadliest and most destructive wildfire in California history.