P&GE’s Problems Could Spill Over to Other Utilities
Bankruptcy and Financial Restructuring group West Coast team leader Aram Ordubegian recently spoke with Business Insurance about Pacific Gas & Electric Co. (PG&E)’s recent filing for Chapter 11 bankruptcy for all its businesses because of the liabilities it faces from catastrophic wildfires in 2017 and 2018.
The utility faces lawsuits from property owners and insurers that allege poor upkeep of its transmission lines which caused the fires.
“PG&E’s financial problems could affect other utilities insurance programs,” Aram said. “I would not be surprised if insurers look at PG&E’s situation and be concerned other utilities might have to go through the same process, either because of climate change or drought, and that it affects their underwriting. Once PG&E files in bankruptcy court, the utility will be required to provide a detailed accounting of its assets and liabilities, including its insurance policies.”
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