PG&E Incurred $219 Million in Costs Related to California Wildfires
By Maria Armental
PG&E Corp. (PCG) on Friday said it had spent more than $200 million to restore and repair facilities in connection with wildfires in Northern California that killed more than 40 people last year.
California regulators are looking into the possible role played by power lines maintained by the utility's subsidiary, Pacific Gas & Electric Co., California's largest investor-owned utility, and PG&E has warned that if found liable, the company would be exposed to significant losses.
As of Jan. 31, insurers had received claims for about $10 billion in damages related to the October 2017 wildfires, according to the California Department of Insurance.
PG&E, which had suspended dividend payouts over the potential liabilities associated with the October 2017 Northern California fires, on Friday said it wouldn't give financial projections for 2018 due to the uncertainty.
More than 100 claims have been filed against the company, including six that have been certified as class actions, according to a securities filing.
In the filing, PG&E also said that, as of Dec. 31, it had spent $219 million in service restoration and repairs related to the fires, above the range it had given in November.
In addition, the company said that, as of Jan. 31, it had submitted 22 electric incident reports to the California Public Utilities Commission--two more than previously reported--in which the California Department of Forestry and Fire Protection has identified a site that potentially involves one of the company's facilities and the property damage exceeded $50,000.
In a conference call with analysts on Friday, Chief Executive Geisha Williams said about three-quarters of the fires were in areas where telecom companies overlap with the company's service territory.
Shares, down about 39% over the past 12 months, set a $37.30 52-week low on Friday before closing at $38.57.
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires
February 09, 2018 16:37 ET (21:37 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.