PG&E stocks drop, concern grows over the utility company's ability to pay potential claims

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Thursday, November 15, 2018
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PG&E stocks drop, concern grows over the utility company’s ability to pay potential claims

Concern is mounting among investors that PG&E doesn't have resources to pay all the potential claims from victims, if the utility is found responsible for the Camp Fire.

PG&E stock has lost over half its value in the last five days of trading.

It dropped 22-percent on Wednesday.

The utility company says its insurance coverage falls short of mounting claims.

In a filing with the Securities and Exchange Commission, PG&E says its insurance coverage doesn't begin to cover existing and future liability claims.

After borrowing over $3 billion in lines of credit and short-term loans, it now has about $3.4 billion in cash on hand and one-point-four billion dollars in insurance coverage.

But that's still $5 billion short of the $10 billion in claims already filed in connection with last year's wildland fires.

That doesn't include the potential for claims for the Camp Fire, for which a cause has not yet been determined.