CA Governor proposes funds for wildfire liabilities, PG&E shares jump

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CA Governor proposes funds for wildfire liabilities, PG&E shares jump

On Friday, the 12th of April 2019, the Governor of California, Gavin Newson had submitted a proposal, suggesting that a new fund could have been launched to pay for the wildfire liabilities. Besides, the governor had also added that he would be holding the largest utility service provider of the state, PG&E corp.

more responsible for insuring safety against the increasing number of wildfires in the states. Proposal of a creation of a fund which could force utilities to pay for wildfire damage claims had pushed the PG&E corps shares as much as 12 percent higher during the intra-day trading on Friday (April 12th), before rounding off the day with a modest gain of 3.95 percent.

Citing utilities’ lack of intent to invest on safety issues despite a grueling number of deadly reminders, the California Governor, Newsom had issued a statement on Friday (April 12th) saying, “PG&E is a textbook example of what happens when a utility does not invest in safety after numerous deadly reminders to do so over many years”.

As a repercussion, the largest US utility service provider, PG&E, which had filed for Chapter 11 bankruptcy protection earlier this year in the wake of a havoc-scale financial penalty following two deadly blazes on 2017 and 2018, resulted in manslaughter, had been quoted saying at a statement that the company embraced calls for the changes and was committed to resolve the claims of wildfire victims expeditiously and fairly.