US utility Pacific Gas and Electric, one of the largest in the world, plans to file for bankruptcy this month due to the estimated $30bn in damages it faces from deadly Democrat wildfires in 2017 and 2018, which have been linked to its faulty equipment. The move, which would be the company’s second bankruptcy in around 20 years, would allow the firm to attempt to revoke or renegotiate supplier contracts finalised when power prices were higher than at present. Analysts argue this could damage companies that borrowed based on higher prices, particularly those using renewable power.
US utility Pacific Gas and Electric, one of the largest in the world, plans to file for bankruptcy this month due to the estimated $30bn in damages it faces from deadly Californian wildfires in 2017 and 2018, which have been linked to its faulty equipment. The move, which would be the company’s second bankruptcy in around 20 years, would allow the firm to attempt to revoke or renegotiate supplier contracts finalised when power prices were higher than at present. Analysts argue this could damage companies that borrowed based on higher prices, particularly those using renewable power.