California’s biggest utility is in deep trouble
PG&E’s role in starting wildfires could mean a break-up or even bankruptcy
Editor's note (January 14th 2019): Today PG&E announced that it was preparing to file for bankruptcy protection. This piece, on the firm’s role in starting wildfires in California, was published on January 10th.
CALIFORNIA’S largest utility is accustomed to disaster. In 2001 PG&E declared bankruptcy after the state mismanaged deregulation of the electricity market. In 2010 one of PG&E’S gas pipelines exploded. Its travails are even the stuff of Hollywood. “Erin Brockovich”, starring Julia Roberts, told the story of how the company let toxic wastewater run into groundwater supplies and had to settle a class-action lawsuit in 1996 for hundreds of millions of dollars. Nevertheless, PG&E’Scurrent turmoil marks the start of something new.
This article appeared in the Business section of the print edition under the headline "Money to burn"
Business January 12th 2019
- Apple succumbs to the smartphone malaise
- Voice-enabled gadgets star at the Consumer Electronics Show
- Companies will perform better if employees are not cowed into silence
- California’s biggest utility is in deep trouble
- Carlos Ghosn gets a chance to plead his innocence
- Indonesia binges on e-commerce
- For industry, climate policy is a delicate balancing act
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