Utility seeks bankruptcy protection over California fires

SAN FRANCISCO (AP) — The nation's largest utility said today it is filing for Chapter 11 bankruptcy because it faces at least $30 billion in potential damages from lawsuits over the catastrophic wildfires in California in 2017 and 2018 that killed scores of people and destroyed thousands of homes.

The move by Pacific Gas & Electric Corp., expected by the end of the month, would be the biggest bankruptcy by a utility in U.S. history, legal experts said.

It would allow PG&E to hold off creditors and continue providing electricity and natural gas without interruption to its 16 million customers in Northern and central California while it tries to put its finances in order.

The filing would not make the lawsuits disappear, but would result in all wildfire claims being consolidated into a single proceeding before a bankruptcy judge, not a jury. That could shield the company from excessive jury verdicts, and also buy time by putting a hold on the claims.

Chapter 11 reorganization represents "the only viable option to address the company's responsibilities to its stakeholders," Richard Kelly, chairman of PG&E's board of directors, said in a statement.

"The Chapter 11 process allows us to work with these many constituents in one court-supervised forum to comprehensively address our potential liabilities and to implement appropriate changes."