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In the last few days, Pacific Gas and Electric (PG&E) has seen its share price collapse as investors become ever more concerned about the role the company’s equipment potentially played in starting one of the worst wildfires the state of California has ever seen.
On November 7, the utility’s share price stood at $48.80 but has since fallen by more than 30%, with the stock closing at $17.74 a share on Thursday.
PG&E camp fire concerns
On Wednesday, the company said in a regulatory filing that it had drawn down around $3 billion from its credit facilities and informed shareholders that PG&E could end up being liable to pay more than $1.4 billion if its equipment is determined to be the cause of a camp fire in Butte County.
The camp fire that started in Butte County is one of three massive wildfires that have destroyed who swathes of California, claiming nearly 60 people’s lives and burning more than 8,000 homes to the ground in what is the most destructive blazes in the state’s history.
PG&E puts out fires
On Monday, PG&E CEO and President Geisha Williams was in the area to assess the damage first hand and receive an update from company leaders and crews.
‘Right now, our primary focus is on the communities and supporting first responders as they work to contain the fire. We're getting our crews positioned and ready to respond when we get access, so that we can safely restore gas and electricity to our customers,’ Williams said.
‘There are no words to describe the unspeakable tragedy and loss of life… Over the coming days and weeks, we will continue mobilizing our workforce to help these communities recover and rebuild,” she added.
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