Pacific Gas & Electric (NYSE: PCG) has been held largely responsible for the Californian wildfires due to the existence of its outdated transmission lines. As a result, the utility company has reported huge losses in its latest earnings report, facing a hefty sum of $6 billion to pay for the catastrophic nature of the fires.
Not only this, but also, PG&E logged a $2.5 billion settlement with insurance companies for the 2017 and 2018 wildfires, bringing its total charges for the fires during those years to $20 billion, according to a filing with regulators.
The company filed for bankruptcy in January in order to be able to start making progress on the $30 billion it has outstanding in liabilities since 2017. This also covers a major wildfire that occurred in November 2018 that practically wiped out the Northern California town of Paradise and killed 85 people.
For context, according to the LA Times, "15 of the 20 most destructive California wildfires have occurred in the last 20 years. During that same period, 10 of the state's 20 deadliest wildfires have broken out, including four in just the last two years. Sixteen of the state's 20 largest wildfires have erupted since 1998."
To ameliorate the situation, PG&E is distributing remedial credits to affected stakeholders. Households will receive $100 per entity while businesses will get $250 per firm. The company stated on Thursday that the credits will cost it $65 million, after tax benefits.
A further cost has been persistent blackouts throughout California, which entailed the closure of businesses and schools for days on end. While some people accused the utility company of enforcing the blackouts as a way by which to cut costs and save money, PG&E Chief Executive Bill Johnson insists that the blackouts were "well planned and executed" and done "solely in the interest of public safety."