PG&E Could Face Criminal Charges, Files for Bankruptcy
California’s largest power company, Pacific Gas and Electric, has filed for bankruptcy amidst hundreds of lawsuits from fire victims in a series of recent wildfires in California. The Chapter 11 bankruptcy was filed in the U.S. District Court for Northern District of California in San Francisco on January 29, 2019.
PG&E’s Decision to File for Bankruptcy
The utility company said bankruptcy was its only practical option. PG&E has been connected to the North Bay fires in the San Francisco Bay Area and the Camp Fire in Butte County. The Camp Fire, the nation’s deadliest wildfire in a century, killed 86 people and destroyed 14,000 homes in addition to 4,300 buildings and 500 businesses. In the North Bay fires, the company was blamed for 44 deaths.
PG&E said it needs to use the bankruptcy process to shed its debt and pay for billions of dollars in damages so it can stay in business. Customers will continue to receive gas and electricity during the bankruptcy process.
This is the company’s second bankruptcy in less than 20 years. In 2001, the company sought bankruptcy protection after a failed deregulation of the electricity industry.
PG&E Could Face Murder Charges
Prior to filing for bankruptcy, PG&E was aware that it could face criminal charges, including murder if it is found to have caused the wildfires and acted in malice in operating and maintaining its equipment.
California State Attorney General Xavier Becerra said in a brief filed in district court that the company could face lesser charges based on how it acted before the fires started. For instance, PG&E may face involuntary manslaughter for failure to clear dry vegetation around power lines, or it could face stiffer felony charges for acting irresponsibly.
The attorney general’s office said they would need to investigate the circumstances further to determine the company’s intent surrounding the deadly wildfires.
PG&E’s Past Criminal Conviction
PG&E was convicted in August 2016 on six felony counts for the San Bruno gas pipeline explosion in San Francisco in 2010 that killed eight people and destroyed 38 homes. In its sentencing, the company was fined $3 million, received five-year probation and 10,000 hours of community service. PG&E was told not to commit any more crimes during its five-year probation. However, federal prosecutors said in December 2018 that the company may have violated the terms of its probation.
In response, PG&E said it could have violated its probation if its power lines caused the deadly Camp Fire and a series of wildfires in 2017, including the Tubbs Fire. PG&E had admitted publicly that its equipment malfunctioned in two separate instances in the Camp Fire area.
PG&E Back in Court
The utility company returned to court a day after filing for bankruptcy to convince Judge William Alsup of the District of Northern California not to order drastic steps to try to prevent its equipment from causing more wildfires.
Judge Alsup is also overseeing PG&E’s 2016 criminal conviction. As part of its probation, the utility company was ordered to re-inspect its entire electric grid. Judge Alsup said the goal is to prevent PG&E powerlines from causing any wildfires in 2019.
PG&E argued that the judge’s proposals would cost as much as $150 billion to implement and would also interfere with the work of state and federal regulators.
Could Bankruptcy Spare PG&E from Criminal Charges?
Bankruptcy may not pardon PG&E from carrying out any of Alsup’s orders. Bankruptcy experts said filing for Chapter 11 does not generally put the company’s criminal matters on hold. However, since Judge Alsup oversees both the bankruptcy case and the criminal proceedings, it would be difficult for both to move forward due to conflicting orders.
In the meantime, the bankruptcy will allow the utility company to continue operating while it puts its papers in order. The filing could lead to higher bills for customers and reduce the payouts to fire victims if all their cases are consolidated in bankruptcy court.
Watch YouTube Video: PG&E Files for Chapter 11 Bankruptcy. The short CNBC news clip reports on PG&E’s decision to file for Chapter 11 bankruptcy protection as it faces billions of dollars in liabilities for the 2017 and 2018 deadly wildfires.
Northern California Wildfire Lawyer
I’m Ed Smith, a North California Wildfire Lawyer. If you or a family member has been a victim in a recent California wildfire, you will need an experienced attorney on your side. Call me at 916.921.6400 or 800. 404.5400 for free, friendly and compassionate advice. You can also contact me online.
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PG&E Could Face Criminal Charges, Files for Bankruptcy: AutoAccident.com
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