PG&E Files for Bankruptcy after California Wild Fire Damages Claim

PG&E Files Bankruptcy

Pacific Gas & Electric Corp (PG&E) has filed for bankruptcy after it faced billions worth of damage claims due to California Wildfires. The company on many occasions has been found guilty in not following state regulations for safety.

PG&E and Wild Fires in California

 PG&E American largest utility supplier has been reportedly found linked to the cause of the wildfire.  The recent wildfire was ignited after a tree branch came into contact with a power cable and killed many people while destroying property worth the millions.

California is no stranger to wildfire. Experts say the hot and dry climate with dense vegetation provides an excellent environment and source of ignition for wildfires. Typically a wildfire starts when combustible vegetation catches fire in rural area. It has been classified into many types based on the plants involved.

The recent California wildfires even affected the celebrity homes apart from ordinary people.

Why file for bankruptcy

Despite the claims and some evidence suggesting it’s not their fault PG&E are filing for bankruptcy. By doing so, it will shed a significant amount in damage claims. The company is under great pressure from activist and victim’s lawyer who are trying to prevent the company from filing for bankruptcy

 Erin Brockovich an activist who has taken on PG&E on numerous occasions urged the politicians to stop the company from filing bankruptcy as this will only increase the victims suffering.

Despite the damage claims and filing for bankruptcy, the company assures that it will continue to supply utilities to the people of California. It has further stated that it has fired its current CEO and is looking for a suitable replacement who is safety conscious.

The companies interim Chief Executive Officer John Simon in a statement said “We are fully committed to improving our wildfire safety standards. We will help in rebuilding and restoration efforts in areas affected by the wildfire.”

People reaction on this matter

 The people are angry and frustrated at what is going on. Some say they have lost everything thing their house, job and in some cases family. A victim reportedly told media that it was totally unacceptable. As they had lost their entire life saving, and now they were told that only a small fraction of their lifesaving will be given. They called it nothing but an act of insult by PG&E.

The government has assured it will resolve the matter as soon as possible by all means.

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