PG&E to file for Chapter 11 bankruptcy, CEO resigns

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Tuesday, January 15, 2019
PG&E Bankruptcy
What does the PG&E bankruptcy mean for you?

SAN FRANCISCO (KFSN) -- PG&E announced Monday morning that it is preparing to file Chapter 11 Bankruptcy as it deals with lawsuits following devastating wildfires in 2017 and 2018. The announcement comes one day after the utility's CEO resigned.

In a statement, PG&E said: "The company does not expect any impact to electric or natural gas service for its customers as a result of the Chapter 11 process. PG&E remains committed to assisting the communities affected by wildfires in Northern California, and its restoration and rebuilding efforts will continue."

RELATED: Here's how PG&E filing for bankruptcy will affect customers

It does appear that the company is preparing for potential liabilities from the roles it may have played in the 2017 Tubbs Fire and the 2018 Camp Fire.

RELATED: PG&E reportedly could face murder charges for deadly Camp Fire

Consumer advocates are concerned that customers could be picking up the bill.

"It's completely disingenuous for PG&E to pretend that its only way out is customers. They're not a public company. We didn't make the decisions that led to this and we didn't share the profits that they've been taking in all along while they've neglected their tree-trimming," said Mindy Spatt, Utility Reform Network.

RELATED: PG&E looking to sell off its natural gas division as early as this spring to cover possible wildfire payouts

PG&E employees will continue to get paid and receive health care benefits during the Chapter 11 process.

On Sunday, PG&E CEO Geisha Williams stepped down. In the meantime, John Simon will serve as Interim Chief Executive Officer. Simon has been with the company since 2007 and served as the Executive Vice President and General Counsel since 2017.

RELATED: PG&E CEO steps down as company faces possible bankruptcy

Barricades have been set up in front of PG&E's offices in San Francisco. Security guards had no comment on why the barricades were put up.

Savina Hall works in the payroll department. She walked in this morning with a smile on her face.

"I don't know what's happening. At this point, I am just hoping for the best. That's all we can do at this point," she said.

Some employees who stepped out midmorning for a break said everything was normal inside, that it felt like business as usual.

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