PG&E CEO steps down as company faces possible bankruptcy

SAN FRANCISCO -- The CEO of Pacific Gas and Electric resigned Sunday and employees could learn this week if the utility will declare insolvency while facing billions of dollars in liability over its role in recent California wildfires.

PG&E released a statement Sunday thanking Geisha Williams for her service. The board of directors chose John Simon as interim CEO.

"While we are making progress as a company in safety and other areas, the board recognizes the tremendous challenges PG&E continues to face," the company said. "We believe John is the right interim leader for the company while we work to identify a new CEO."

PG&E is in discussions with lenders about a financing package worth up to $5 billion. It would allow the company to continue operating during Chapter 11 bankruptcy proceedings.

Under a new state law, PG&E must tell its employees at least 15 days before a change of control in the company - including a bankruptcy filing, the San Francisco Chronicle reported. That notice may come as soon as Monday.

State fire investigators blamed the utility's power lines for causing a number of California wildfires in October 2017.