As of the last check, PCG shares were up 4.24% to trade at $13.29 despite a probe having been launched against the company. PCG closed Monday’s session at $12.75 up 1.11%.
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PGC is facing which probe?
In response to California’s largest wildfire of the year, federal authorities have launched a criminal investigation into PG&E Corp. (PGC).
One of PGC’s transmission poles was reportedly removed by the US Forest Service on Sept. 24, the company said in a filing Monday. A USFS spokesman said it doesn’t comment on ongoing investigations.
As PG&E moves beyond its troubled history with fires, this investigation represents a significant setback. PGC pleaded guilty to 84 counts of involuntary manslaughter for its role in a deadly 2018 fire that drove it into bankruptcy and was charged with manslaughter for a 2020 fire. For the company, the latest investigation could also have significant financial and regulatory repercussions.
The company may find it harder to recover costs from customers if it is found criminally liable for the fire. As a condition of emerging from bankruptcy in 2020, state regulators could also increase their oversight of the utility.
In a research note led by Pourreza, an analyst at Guggenheim Securities, Shahriar Pourreza dismissed the possibility of PG&E suffering serious financial consequences from the blaze. According to Pourreza, damage estimates are below insurance thresholds despite being one of the biggest fires in 2022.
Since it began in the drought-parched Sierra Nevada foothills east of Sacramento, the Mosquito fire has burned almost 77,000 acres and destroyed 78 structures. As of Monday, the fire was 85% contained.
An action against PG&E:
Officials have yet to figure out what caused the fire, which is being investigated by PG&E, the state’s largest utility. The utility says it is cooperating and conducting its own investigation. A power-line failure had already been reported to regulators by PG&E around the time the fire started, according to reports.
