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| PG&E Will Plead Guilty to Involuntary Manslaughter in Camp Fire | |
| (about 1 hour later) | |
| Pacific Gas & Electric, California’s largest utility, said Monday that it had agreed to plead guilty to involuntary manslaughter in connection with the Camp Fire, the state’s deadliest wildfire. | Pacific Gas & Electric, California’s largest utility, said Monday that it had agreed to plead guilty to involuntary manslaughter in connection with the Camp Fire, the state’s deadliest wildfire. |
| California regulators determined last year that PG&E’s equipment caused the fire, which in 2018 engulfed the town of Paradise and led to the deaths of 85 people. | California regulators determined last year that PG&E’s equipment caused the fire, which in 2018 engulfed the town of Paradise and led to the deaths of 85 people. |
| Facing tens of billions of dollars in wildfire claims, PG&E has been in bankruptcy reorganization since early last year. The company is racing to emerge from bankruptcy by June so that it can qualify for inclusion in a new state wildfire fund that could cover the costs of future fires. | Facing tens of billions of dollars in wildfire claims, PG&E has been in bankruptcy reorganization since early last year. The company is racing to emerge from bankruptcy by June so that it can qualify for inclusion in a new state wildfire fund that could cover the costs of future fires. |
| The plea agreement, struck with the district attorney in the county where the Camp Fire occurred, followed the announcement on Friday that Gov. Gavin Newsom was willing to approve PG&E’s plan to emerge from bankruptcy. Under the plan, victims of the wildfires have agreed to a payment of $13.5 billion. | The plea agreement, struck with the district attorney in the county where the Camp Fire occurred, followed the announcement on Friday that Gov. Gavin Newsom was willing to approve PG&E’s plan to emerge from bankruptcy. Under the plan, victims of the wildfires have agreed to a payment of $13.5 billion. |
| “Today’s charges underscore the reality of all that was lost," Bill Johnson, PG&E’s chief executive, said in a statement, “and we hope that accepting those charges helps bring more certainty to the path forward so we can get victims paid fairly and quickly.” | |
| The plea agreement, announced in a securities filing, said PG&E had accepted a maximum penalty of $3.5 million and “no other or additional sentence will be imposed on the utility in the criminal action in connection with the 2018 Camp Fire.” The agreement requires the approval of a state court and the bankruptcy court. | |
| The Camp Fire started after a hook holding a PG&E transmission line broke from a nearly 100-year-old tower near Paradise. The company repeatedly failed to maintain that line even though it cut through a forested and mountainous area known to experience strong winds, the California Public Utilities Commission concluded in a report last year. | |
| Victims of the Camp Fire could in theory use PG&E’s guilty plea to bolster their claims against the company. The agreement says that the state would not oppose any effort by PG&E to try to settle those claims as part of its bankruptcy. | |
| 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. PG&E 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 PG&E’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 jumped about 10 percent, to $7.97, in early trading on Monday after the plea agreement was announced. | |
| PG&E 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. | PG&E 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, PG&E 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. | A federal judge’s approval is still needed for the company’s bankruptcy plan. |
| This is a developing story. Check back for updates. | This is a developing story. Check back for updates. |