PG&E, which supplies electricity to 16 million California residents, tumbled on Wednesday after warning that insurance might not cover its liabilities if the utility is held responsible for a still-raging wildfire that has destroyed a Northern California town, killed at least 42 people, and heightened tension between the largely Democratic state and the Trump administration.
The San Francisco-based company, which has booked estimated losses of $2.79 billion this year for claims related to previous wildfires, said it reported a power outage in Butte County, where the Camp Fire is still only 35 percent contained, minutes before the fire began and discovered damage to a transmission tower in the area later that afternoon.
“While the cause of the Camp Fire is still under investigation, if the utility’s equipment is determined to be the cause, the utility could be subject to significant liability in excess of insurance coverage,” PG&E said in a filing with the Securities and Exchange Commission. The company renewed wildfire liability coverage for a total of $1.4 billion this summer.
PG&E fell 24 percent to $24.87 in New York trading after the disclosure, which came just a day after the White House approved California Gov. Jerry Brown’s request for a presidential disaster declaration, making federal funds available to buoy the state’s response to the Camp Fire as well as blazes in Los Angeles and Ventura counties.
“We have a real challenge here, threatening our whole way of life,” Brown said Tuesday. “It is a time of sadness but also one to reflect on where we are and resolve to pull together and do everything we can to help those in need.”
Trump, who initially blamed the wildfires on poor forest management by the state and threatened to withhold “Fed payments” — moves that prompted a furious response from California officials and others — later changed tack, approving government assistance rapidly and posting sympathetic comments on Twitter.
Was just briefed by @FEMA_Brock and @SecretaryZinke, who are in California. Thank you to the great Firefighters, First Responders and @FEMA for the incredible job they are doing w/ the California Wildfires. Our Nation appreciates your heroism, courage & genius. God Bless you all!
— Donald J. Trump (@realDonaldTrump) November 14, 2018
In Butte County, some 800 PG&E employees headquartered in a base camp are working to remove fallen utility poles and wires from roads and assess needed repairs to electrical and gas distribution networks once they’re allowed access, the utility said Wednesday.
Since Monday, crews have restored electrical power to approximately 2,200 customers in areas where that’s possible, but about 23,000 electricity customers and 12,000 gas customers are still without.
“There are no words to describe the unspeakable tragedy and loss of life,” PG&E CEO Geisha Williams said in a statement. “Over the coming days and weeks, we will continue mobilizing our workforce to help these communities recover and rebuild.”
