California Regulators Said to Signal No Bankruptcy Interest in PG&E

The transcript discusses the financial challenges faced by PG&E, California's largest electricity provider, due to liabilities from wildfires. The California Public Utilities Commission believes bankruptcy is not in the public interest, prompting discussions on legislative measures to aid PG&E. The company faces over $30 billion in liabilities, with a market cap of around $12 billion, creating a significant financial burden. State-backed bonds were issued for 2017 wildfire costs, but 2018 liabilities remain unaddressed, necessitating further legislative action. Investor confidence hinges on the nature and timing of these legislative solutions.

Why does the California Public Utilities Commission believe it is not in the public interest for PG&E to go bankrupt?

• It would disrupt electricity supply.

• It would create a significant financial burden on the state.

• It would lead to a loss of jobs.

• It would increase electricity prices.

What is the estimated total liability PG&E is facing, including the 2017 wildfires?

• $30 billion

• $15 billion

• $60 billion

• $45 billion

What is a potential consequence if legislative measures to support PG&E are delayed?

• Immediate bankruptcy of PG&E

• Loss of investor confidence

• Reduction in state taxes

• Increase in electricity rates

What did the law passed in California in September allow PG&E to do?

• Sell company assets

• Issue bonds to cover 2017 wildfire costs

• Increase electricity rates

• Receive state subsidies

What additional action might the legislature need to take regarding PG&E's liabilities?

• Pass a measure to cover 2018 wildfire costs

• Nationalize PG&E

• Allow PG&E to increase electricity rates

• Provide direct financial aid to PG&E