SAN FRANCISCO--(BUSINESS WIRE)--Pacific Gas and Electric Company today announced that it will join a new fund to cover the cost of future wildfires in California.
The company notified the California Public Utilities Commission of its decision to support and elect to help fund the statewide wildfire fund established by California Assembly Bill 1054, signed into law earlier this month.
PG&E expects that its initial contribution to the wildfire fund would be approximately $4.8 billion, and that its annual contributions would be approximately $193 million. The initial contribution would be payable upon the company’s emergence from Chapter 11 reorganization.
“California’s ever-growing risk of wildfire is a reality we must face squarely, and a matter of deep concern to all of us who call this place home. We appreciate Governor Newsom’s leadership in addressing this complex issue, with the recognition that there is more that needs to be done. We will continue to work with the Governor, the Legislature, the California Public Utilities Commission, and all other stakeholders in finding shared solutions to our common challenges without creating more costs for our customers,” said PG&E Corporation Chief Executive Officer and President Bill Johnson.
The company’s participation is subject to the conditions set forth in AB 1054, which include approval by the bankruptcy court. Additionally, PG&E’s contributions to the fund will require financing that will be resolved through the Chapter 11 process.
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric energy company in the United States. Based in San Francisco, with more than 23,000 employees, the company delivers some of the nation’s cleanest energy to 15 million people in Northern and Central California. For more information, visit www.pge.com/ and http://www.pge.com/about/newsroom/.
This news release includes forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and Pacific Gas and Electric Company (Utility). These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties, including whether the Utility will satisfy the eligibility conditions to participate in the Wildfire Fund, how the Utility will finance its required contributions to the Wildfire Fund and the extent to which any benefits to the Utility of participating in the Wildfire Fund will be realized. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include the factors disclosed in PG&E Corporation’s and the Utility’s Annual Report on Form 10-K for the year ended December 31, 2018, their most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, and their subsequent reports filed with the Securities and Exchange Commission. Additional factors include, but are not limited to, those associated with PG&E Corporation’s and the Utility’s chapter 11 cases. PG&E Corporation and the Utility undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.