The utility that operates California’s last operational nuclear power plant said Monday it anticipates filing for Chapter 11 bankruptcy protection by Jan. 29 in order to reorganize its operations.
The boards of directors for Pacific Gas & Electric Corp. and subsidiary utility PG&E Co. have determined “that commencing reorganization cases under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”) is appropriate, necessary and in the best interests of all stakeholders, including wildfire claimants, PG&E’s other creditors and shareholders, and is ultimately the only viable option to restore PG&E’s financial stability to fund ongoing operations and provide safe service to customers,” according to a filing with the U.S. Securities and Exchange Commission.
PG&E power transmission lines have been linked to ignition of the Camp Fire in Northern California that in November burned 153,336 acres of land, killed 86 people, and destroyed nearly 14,000 residences and over 500 commercial structures. The company estimated its total liability for wildfires in 2017 and 2018 at $30 billion or more.
The upcoming bankruptcy filing will not impact PG&E natural gas and electric services to its customers, spokesman Blair Jones said Monday.
The company submitted 8-K filing one day after announcing the resignation of CEO Geisha Williams.
The two-reactor Diablo Canyon plant in San Luis Obispo County provides roughly 20 percent of PG&E’s power output in its service area. It is the last operating nuclear power plant in California. The SEC filing makes no reference to the facility, which is scheduled to be fully retired in 2025 and replaced with other forms of greenhouse gas-free energy.
“We remain focused on continuing with this process. We’re staying on our path,” Jones said.
Pacific Gas & Electric said in December it would need $4.8 billion to decommission the power plant. That would require $1.6 billion more from ratepayers than previously estimated.
Jones said the company anticipates a decision from the California Public Utilities Commission regarding the rate increase within 12 to 18 months.
