A federal judge on Friday is expected to approve Pacific Gas & Electric’s plan to exit bankruptcy, a crucial step in efforts to overhaul a utility whose equipment was involved in some of the worst wildfires to ravage California in recent years. If the judge confirms PG&E’s bankruptcy plan before the end of June, the company would be allowed to take part in a $20 billion state fund to help cover liabilities from future wildfires started by the company’s transmission lines and other equipment. But even with that financial shield, reorganized finances and new management, PG&E will face daunting challenges. The company’s operations stretch across a 70,000-square-mile service area that appears increasingly vulnerable to wildfires because of climate change. But ending the bankruptcy process would at least clear the way for payments to victims of the wildfires.

Source: New York Times June 19, 2020 15:56 UTC