Devastating Wildfires Force California's Largest Utility To Plan Sale Of Gas Assets
Facing staggering liability costs for its potential culpability in a series of deadly wildfires, the parent company of California's largest utility is exploring whether to sell off a major part of the company, NPR has learned.
Internally, Pacific Gas & Electric has dubbed this strategy "Project Falcon." Under the plan, the company would sell its natural gas division this spring. After years of deadly errors and safety violations, the utility giant is looking for ways to cover liability costs and avoid bankruptcy, a senior company official and a former employee with knowledge of the plan tell NPR.
All net proceeds from the sale of PG&E's gas division would be used to set up a fund to pay billions of dollars in potential claims from wildfires, the sources said. They requested anonymity because they were not authorized to speak publicly.
The company also is exploring selling key real estate assets, including its San Francisco headquarters, and moving its operations elsewhere in the Bay Area, the sources say.
On Friday the company announced it would be"reviewing structural options" to best position the company to meet customer and operational needs. In addition PG&E said it is searching for new directors for its board directors to "augment
