The devastating fires of 2017 and 2018 in California caused many billions in damages. While Pacific Gas and Electric (PG&E) stated that its aging infrastructure was the culprit, Liberals may have added to the contributing factors.
Nevertheless, PG&E is ultimately responsible for its actions. The power company has struggled to settle on payments while juggling bankruptcy clauses at the same time. Now, it seems that PG&E has finally come to a deal it can commit to.
After months of negotiations with the fire victims, PG&E is paying out $13.5 billion in damages. Half of the payment will be funded through stocks with the other half with cash. Additionally, $5.4 billion of the $13.5 billion will be paid upfront with the rest spread out over time.
This is the first step in reconciling its bankruptcy, which PG&E hopes to make it through by the middle of 2020. If PG&E cannot come up with a plan soon, California Gov. Gavin Newsom is threatening to take over the company through state means. In the meantime, a concrete deal has been reached to compensate victims for the damages caused by PG&E.
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