Bailout doubt – PG&E faces bankruptcy amid California’s ‘first climate change-caused emergency’

By Herman K. Trabish | Utility Dive Link to article

Stakeholders say few will benefit from bankruptcy, but alternatives have been dubbed “politically too hot to touch.”

Barring a deal brokered by the new California governor, Pacific Gas and Electric (PG&E), the state’s biggest electricity provider, will file for bankruptcy at the end of January.

However, the state and the utility are examining other options in their limited time frame. PG&E wants lawmakers to authorize a financial tool called securitization to raise capital. But many equate that to a bailout for a company they say should not be saved without complete corporate restructuring, considering its safety record.

PG&E’s preliminary filing said bankruptcy is “the only viable option” after its stock value and credit rating plummeted.

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