PG&E Will Plead Guilty to Involuntary Manslaughter in Camp Fire

“I don’t see this as a win for the victims no matter which way it all goes,” Ms. Gowins, who is a member of a committee that represents wildfire victims in PGE’s bankruptcy case. “Basically, they’re just going to slap them on the hand. I keep saying, ‘Only the Lord can open a door now.’”

Ms. Gowins fears that people like her will ultimately receive little from the utility for their losses. Half of the $13.5 billion settlement that PGE reached with wildfire victims will be in the form of company stock, which has fallen sharply since mid-February when stock markets began tumbling because of the expanding coronavirus outbreak.

“I’m just not sure how Paradise is going to be able to stand back up on its feet,” she said.

The guilty plea could also affect how a federal court decides whether the utility is in compliance with its probation for a 2010 gas pipeline explosion in San Bruno, a town south of San Francisco. PGE was convicted of six felonies for violating a pipeline safety law and obstructing an investigation. The judge overseeing that case, William H. Alsup, has been highly critical of PGE’s safety record and last year ordered its board of directors to visit Paradise to see first hand the destruction the company’s equipment had caused.

The company’s stock was up about 8 percent, to $7.84, on Monday afternoon but still far from the nearly $18 it hit a month ago.

PGE sought bankruptcy protection early last year — its second Chapter 11 filing in two decades — with $30 billion in liabilities related to wildfires ignited by the utility’s poorly maintained electrical system.

Under an agreement with Mr. Newsom announced on Friday, the utility pledged billions of dollars to help wildfire victims, improve safety and make other changes.

As part of that deal, PGE will not pay dividends to shareholders for three years. The agreement should allow the utility to exit bankruptcy by June 30, a state-mandated deadline for it to take part in the fund that is designed to help utilities pay the claims from future wildfires.

A federal judge’s approval is still needed for the company’s bankruptcy plan.

Article source: https://www.nytimes.com/2020/03/23/business/energy-environment/pge-camp-fire-manslaughter.html