In this Wednesday, Oct. 18, 2017 file photo, PG & E electrical crews work on restoring power to a residence damaged by wildfires in Glen Ellen, Calif. Facing potentially colossal liabilities over deadly California wildfires, PG&E will file for bankruptcy protection. The announcement Monday, Jan. 14, 2019, follows the resignation of the power company’s chief executive. (AP Photo/Ben Margot)SAN FRANCISCO (AP) – The nation’s largest utility said Monday it is filing for Chapter 11 bankruptcy because it faces at least $30 billion in potential damages from lawsuits over the catastrophic wildfires in California in 2017 and 2018 that killed scores of people and destroyed thousands of homes.
The move by Pacific Gas & Electric Corp., expected by the end of the month, would be the biggest bankruptcy by a utility in U.S. history, legal experts said.
It would allow PG&E to hold off creditors and continue providing electricity and natural gas without interruption to its 16 million customers in Northern and central California while it tries to put its finances in order.
The filing would not make the lawsuits disappear, but would result in all wildfire claims being consolidated into a single proceeding before a bankruptcy judge, not a jury. That could shield the company from excessive jury verdicts and buy time by putting a hold on the claims.
Chapter 11 reorganization represents “the only viable option to address the company’s responsibilities to its stakeholders,” Richard Kelly, chairman of PG&E’s board of directors, said in a statement.