SAN FRANCISCO — Pacific Gas & Electric Corp. filed for bankruptcy Tuesday as the largest U.S. utility faces billions of dollars in potential damages stemming from wildfires in California. The bankruptcy filing immediately puts a halt to the wildfire lawsuits and consolidates them in bankruptcy court, where legal experts say victims will likely receive less money. Wildfire victims have little chance of getting punitive damages or taking their claims to a jury in a bankruptcy proceeding. Gavin Newsom’s office estimated that more than half of the roughly $30 billion in potential damages that PG&E said it was facing was from that fire. PG&E emerged from bankruptcy three years later but obtained billions of dollars in higher payments from ratepayers.

Source: National Post January 29, 2019 06:07 UTC