PCG - PG&E Corporation

NYSE - NYSE Delayed Price. Currency in USD
11.24
-0.48 (-4.10%)
At close: 4:03PM EST
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Previous Close11.72
Open11.72
Bid11.21 x 1300
Ask11.37 x 1200
Day's Range10.60 - 11.97
52 Week Range3.55 - 25.19
Volume25,163,129
Avg. Volume21,504,944
Market Cap5.9B
Beta (5Y Monthly)0.42
PE Ratio (TTM)N/A
EPS (TTM)-20.75
Earnings DateFeb 26, 2020 - Mar 2, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend Date2017-09-28
1y Target Est14.94
  • PG&E Faces a Sprint to Fix Restructuring After Governor’s Rebuke
    Bloomberg

    PG&E Faces a Sprint to Fix Restructuring After Governor’s Rebuke

    (Bloomberg) -- California Governor Gavin Newsom has long called for PG&E Corp. to emerge from its bankruptcy radically transformed. Now, the beleaguered utility has to race to meet his demands -- or else see its restructuring plan blow up.The state’s largest power company has until Tuesday to address conditions that Newsom laid out in a letter late last week rejecting its reorganization proposal. The governor said the current plan falls “woefully short” of meeting requirements of a key state law and insisted on changes that could reshape PG&E, including an entirely new board and the option for a takeover.Newsom’s rebuke upends PG&E’s restructuring just as the path toward a smooth exit next year seemed to be clearing. The San Francisco-based company, in bankruptcy after its equipment caused massive wildfires, earlier this month reached a $13.5 billion settlement with victims of the blazes. The deal, however, is dependent on the governor’s support and his determination that the reorganization complies with a state law that would provide financial assistance for future fire costs.“His list of demands might be hard for the company to accept, putting the whole Chapter 11 timeline in jeopardy,” said Jared Ellias, a bankruptcy law professor at the University of California, Hastings. “He could have asked for something akin to changing the drapes. Instead it’s more like he is asking them to change their floor plan.”In his letter to PG&E Chief Executive Officer Bill Johnson, Newsom said the bankruptcy resolution “must yield a radically restructured and transformed utility that is responsible and accountable.” He called for a better financial plan, clearly defined safety metrics and a “streamlined process” for a state or third-party takeover if warranted. He also said he doesn’t expect that the post-confirmation board will include any current directors.PG&E said its plan meets state law and “is the best course forward for all stakeholders.”“We’ve welcomed feedback from all stakeholders throughout these proceedings and will continue to work diligently in the coming days to resolve any issues that may arise,” the company said in a statement Friday.Under the settlement agreement, the company has to modify the plan in a manner “acceptable to the governor” by Tuesday.Political PressureNewsom, who took office just weeks before PG&E filed the largest-ever utility bankruptcy in January, faces political pressure to show dramatic changes. The company’s role in deadly wildfires has provoked widespread public outrage, which was exacerbated in October after a series of mass blackouts designed to keep its power lines from sparking wildfires during dry, windy conditions. The governor threatened a state takeover of the company after the outages if it couldn’t improve its operations.“After the company exits bankruptcy, Newsom really needs it to succeed,” Ellias said. “It could put his entire career as governor in jeopardy if this company isn’t successful.”A recent poll by the University of California at Berkeley showed that a majority of the state’s voters are in favor of changing the way PG&E operates, with one-third wanting an end to it as an investor-owned utility.Already, a California lawmaker is planning to introduce legislation that would turn PG&E into a government-owned utility. And a group of mayors and local officials have floated a proposal to make it a customer-owned cooperative.Rival BidNewsom’s demands could give activist investor Elliott Management Corp. and Pacific Investment Management Co. another shot at rallying support around a rival restructuring plan. They’re leading a group of bondholders that have offered to inject $20 billion in cash into PG&E in exchange for most of the equity in the company.In a statement Thursday, Elliott blasted PG&E’s own restructuring proposal, saying it would saddle the company with an additional $10 billion in debt, limit its safety investments and turn the utility into a “junk-bond issuer.”In his letter, Newsom raised similar concerns that PG&E’s debt-heavy plan wouldn’t allow for the company to make billions of dollars of needed safety investments.“All of this contributes to a reorganized company, that, in my judgment, will not be positioned to provide safe, reliable, affordable electric service,” he said.\--With assistance from Steven Church.To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.netTo contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, Kara Wetzel, Virginia Van NattaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • ACCESSWIRE

    SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in PG&E Corporation of Class Action Lawsuit and Upcoming Deadline - PCG

    NEW YORK, NY / ACCESSWIRE / December 14, 2019 / Pomerantz LLP announces that a class action lawsuit has been filed on behalf of shareholders of PG&E Corporation ("PG&E" or the "Company") (PCG) against certain of the Company's officers. The class action, filed in United States District Court, for the Northern District of California, and indexed under 19-cv-06996, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise, acquired PG&E securities between December 11, 2018, and October 11, 2019, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

  • California Governor Rejects PG&E’s Restructuring Proposal
    Bloomberg

    California Governor Rejects PG&E’s Restructuring Proposal

    (Bloomberg) -- California Governor Gavin Newsom rejected PG&E Corp.’s proposed restructuring plan on Friday, dealing a major blow to the power giant as it tries to exit the biggest utility bankruptcy in U.S. history.Newsom said in a letter to PG&E Chief Executive Officer Bill Johnson that the utility’s restructuring plan falls “woefully short” of the state’s requirements. The governor said any reorganization of the San Francisco-based power company would require a better financing plan, an entirely new board with a majority from California and the option of a government takeover should PG&E fail to meet safety performance metrics.PG&E’s bankruptcy punctuates “more than two decades of mismanagement, misconduct, and failed efforts to improve its safety culture,” Newsom said in his letter. And its plan to reorganize does not “result in a reorganized company positioned to provide safe, reliable and affordable service to its customers,” he said. Newsom’s support is crucial to PG&E’s restructuring. The company declared bankruptcy in January after its equipment was blamed for starting catastrophic wildfires in 2017 and 2018, including the deadliest blaze in California history. The fires saddled the utility with an estimated $30 billion in liabilities, and it has spent months trying to cobble together a viable restructuring plan as shareholders and bondholders fight for control of it.PG&E, which has until Tuesday to respond and make changes, said in a statement that it believes its current plan meets state requirements and “is the best course forward for all stakeholders.” The San Francisco-based company said it will “work diligently in the coming days to resolve any issues that may arise.”Deal with VictimsThe rejection is a major setback for PG&E just a week after it reached a $13.5 billion settlement to pay victims affected by the fires its equipment caused. A deal with victims had emerged as the company’s largest obstacle in planning a reorganization. Based on a provision in that settlement, the governor had to find that PG&E’s plan complied with state legislation passed in July. The law required PG&E to settle past fire liabilities and resolve its bankruptcy by June if it wants to participate in a newly established wildfire insurance fund and avoid future damages tied to catastrophic fires.Read More: Elliott Bashes PG&E Plan, Says It Would Be Junk-Bond Issuer Newsom’s demands could give activist investor Elliott Management Corp. and Pacific Investment Management Co. another shot at rallying support around a rival restructuring plan. They’re leading a group of bondholders that have offered to inject $20 billion in cash into PG&E in exchange for most of the equity in the company.The bondholders were, in fact, the first to reach a deal with wildfire victims, agreeing to pay them $13.5 billion while PG&E initially proposed just $8.4 billion. But the utility later raised its offer and won over fire victims, announcing the settlement last week.Junk BondsIn a statement Thursday, Elliott said PG&E’s own restructuring proposal would saddle the company with an additional $10 billion in debt, limit its safety investments and turn the utility into a “junk-bond issuer.”In his letter, Newsom similarly raised concerns about the company’s plan to use a combination of debt, secured debt, securitization and monetization of its net operating losses leaving it “with limited ability to withstand future financial and operational headwinds.” He also said the state is focused on meeting the needs of Californians and not “on which Wall Street financial interests fund an exit from bankruptcy.”PG&E described Elliott’s rival plan as “a last-ditch effort to derail the wildfire victims’ settlements, and force costly, uncertain and protracted litigation.” The company said the bondholders’ proposal only stands to “enrich those firms backing it” and said the group would actually charge interest rates on debt that are above market rate.In the hours leading up to Newsom’s letter, PG&E issued statements from fire victims’ attorneys, backing its settlement.Read More: PG&E Could Have Prevented Deadly California Fire, State Says In a rare display of solidarity with the company, consumer advocate Erin Brockovich -- best known for her success in a court case against PG&E over water contamination in the 1990s -- voiced support for the deal, saying it would “fairly and justly compensate wildfire victims in a timely manner.”PG&E’s equipment was identified as the cause of the November 2018 Camp Fire that killed 85 people, burned down tens of thousands of homes and all but destroyed the Northern California town of Paradise.(Updates with PG&E statement in seventh paragraph)To contact the reporters on this story: Steven Church in Wilmington, Delaware at schurch3@bloomberg.net;Mark Chediak in San Francisco at mchediak@bloomberg.netTo contact the editors responsible for this story: Rick Green at rgreen18@bloomberg.net, Lynn DoanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters

    California governor rejects PG&E bankruptcy reorganization plan

    The decision by Newsom, sent to PG&E in a letter, complicates the company's push to exit bankruptcy and provide billions of dollars to victims of devastating wildfires in 2017 and 2018 sparked by the utility's power lines. The embattled utility now has until Tuesday to further amend its plan to Newsom's satisfaction, but his criticism of the reorganization package as it was presented by PG&E a day earlier was sweeping.

  • Cities explore electricity options that don't include PG&E
    American City Business Journals

    Cities explore electricity options that don't include PG&E

    Local cities are positioning for a future where Pacific Gas & Electric Co. may not be their electricity provider.

  • Moody's

    Fort Bend County Industrial Development Corp -- Moody's upgrades NRG's CFR to Ba1 from Ba2, outlook positive

    Moody's Investors Service ("Moody's") today upgraded NRG Energy, Inc.'s (NRG) Corporate Family Rating (CFR) to Ba1 from Ba2, its senior unsecured rating to Ba2 from Ba3 and its senior secured tax exempt bonds to Baa2 from Baa3. NRG's secured revolving credit facility and senior secured first lien notes were affirmed at Baa3 because they contain a fall-away security provision where the security interest would cease to be effective if two rating agencies raise the company's rating to investment grade.

  • Barrons.com

    PG&E Is One Step Closer to Getting Out of Bankruptcy

    Pacific Gas and Electric and its holding company PG&E are trying to meet a legislative deadline to gain access to a state fund created to cover future wildfire costs.

  • GlobeNewswire

    Bronstein, Gewirtz & Grossman, LLC Reminds Investors of Upcoming Class Actions PG&E Corporation (PCG), Uniti Group Inc. (UNIT) & Twitter, Inc. (TWTR)

    NEW YORK, Dec. 13, 2019 -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against the following.

  • Bloomberg

    For Once, Erin Brockovich and PG&E Are Fighting On The Same Side

    (Bloomberg) -- Perhaps for the first time ever, Erin Brockovich and PG&E Corp. are on the same side.Brockovich is best known for her success fighting the California utility giant in court over water contamination, a battle later depicted in an Academy Award-winning film starring Julia Roberts. But on late Thursday, she voiced support for a plan by PG&E to compensate the victims of wildfires ignited by its power lines -- a settlement that could help the power company emerge from bankruptcy next year.PG&E distributed Brockovich’s statement as it was fielding criticism from the New York hedge fund Elliott Management Corp., which is pitching a rival restructuring plan for PG&E and has warned that the company’s proposal jeopardizes its long-term health. Elliott and Pacific Investment Management Co. are leading a group of bondholders offering to inject as much as $20 billion in cash into PG&E in exchange for almost all of the company’s equity.As part of PG&E’s restructuring plan, the company agreed last week to pay $13.5 billion to wildfire victims. The deal still needs approval by California Governor Gavin Newsom and the bankruptcy court.“This proposed plan of reorganization and settlements with all the victims meet the Governor’s goals that he’s laid out,” Brockovich said in the statement. “First and foremost, they will fairly and justly compensate wildfire victims in a timely manner. This approach will also enable the company to continue to help meet the state’s climate and clean energy goals.”To contact the reporters on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net;Dan Murtaugh in Singapore at dmurtaugh@bloomberg.netTo contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net, Jasmine NgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters

    California power producer PG&E files amended reorganization plan

    The development comes less than a week after the company said it reached a $13.5 billion settlement with victims of some of the most devastating wildfires in California's modern history. PG&E has settled all major wildfire claims and resolved disputed release provisions between insurance companies and wildfire victims, it said on Thursday. The company also said its plan can be fully funded through its capital structure, including the $12 billion equity backstop commitments that PG&E received last week.

  • Business Wire

    Voices of Support for PG&E’s Recent Settlement Agreement with Individual Wildfire Victims

    PG&E Corporation and Pacific Gas and Electric Company (together, "PG&E") today shared the following demonstrations of support for the recent settlement agreement with individual wildfire victims that treats all victims fairly, protects customers, and will enable PG&E to emerge from Chapter 11 as a financially sound utility positioned to serve California for the long term.

  • Business Wire

    PG&E Files Amended Plan of Reorganization; Remains on Track to Achieve Confirmation of Plan Before June 30 Deadline

    PG&E Corporation and Pacific Gas and Electric Company (together, "PG&E") today filed an amended Plan of Reorganization with the Bankruptcy Court in its Chapter 11 cases. The Plan reflects PG&E’s settlements with all major groups of wildfire claimants and keeps PG&E on track to achieve regulatory approval and Bankruptcy Court confirmation in advance of the June 30, 2020, statutory deadline for participation in the state’s new wildfire fund.

  • Financial Times

    Stockpickers take a starring role when shares collapse

    Blame the rise of passive investing: trillions of dollars of brainless exchange traded funds that exacerbate market swings. Blame regulations: European legislation known as Mifid II that has left smaller companies with less analyst coverage, leaving their shares vulnerable to sudden moves. All real factors — but all trivial compared with the decisions of human fund managers choosing to deliver a drubbing to companies.

  • Elliott’s PG&E Plan Aims Carefully at Gavin Newsom
    Bloomberg

    Elliott’s PG&E Plan Aims Carefully at Gavin Newsom

    (Bloomberg Opinion) -- Looked at one way, Gavin Newsom’s dilemma is actually quite enviable. Choosing which hedge fund you get to disappoint is something many would relish. But the California governor finds himself boxed in on determining what happens next with bankrupt utility PG&E Corp.Newsom must decide whether to support the company’s latest plan to emerge from chapter 11, which includes a revised $13.5 billion settlement agreed last week with wildfire victims. Having also settled with insurance firms for $11 billion and local governments for $1 billion, PG&E has effectively tightened pressure on one of the last remaining stakeholders — sitting in Sacramento — to get on board. In the background, a clock ticks toward the effective June 2020 deadline enshrined in California’s wildfire-fund legislation.On Thursday, Elliott Management Corp., part of the bondholders’ committee pushing a rival exit plan, put a shot across the bow of the company, but it was ultimately also aimed at the governor’s mansion. Elliott lists multiple criticisms of the company’s plan, ranging from implications for PG&E’s governance and culture to the impact on the company’s balance sheet, cash flow and, thereby, ratepayers. Just so Newsom (and his constituents) have the full picture, you understand.One of the interesting items in Elliott’s statement is that it no longer would require the new PG&E to carry debt at the holding-company level. Previously, it had penciled in $5.75 billion that would be replaced with additional equity commitments from several mutual funds, according to people familiar with the plan. PG&E’s own proposal calls for $7 billion. Prior to the wildfires that pushed PG&E into bankruptcy, this debt amounted to just $650 million.This so-called “holdco” debt is different from the $27 billion or so that would be carried by the actual regulated utility assets. As such, it effectively relies on the dividend paid up to the parent by the operating company — an operating company that faces years of high spending to alleviate wildfire risk and, of course, the ongoing risk of those wildfires (albeit with a new insurance fund to mitigate that).Even before Elliott’s announcement it was ditching the holdco debt, Andy DeVries, an analyst at CreditSights, was skeptical as to who would want to buy such paper under either plan, especially at the 4% coupon PG&E had penciled in. He points out that if the $7 billion found buyers at, say, 6%, that would represent a $420 million interest payment versus the operating company’s average dividend payment from 2014-17 of $795 million. Tax-adjusted, the roughly $300 million would absorb 12% of the new PG&E’s net income(1).This gets at one of the main battlegrounds in PG&E’s bankruptcy: the obligations on the emergent company’s cash flows and what this means for existing shareholders, creditors and ratepayers. The bondholders’ committee, including Elliott, has from the start pushed for more expansive payments to victims funded by a lot of new equity, giving it ownership of the company and diluting existing shareholders down to virtually zero. Conversely, the latter have gradually raised their compensation offer to match the bondholders’, but structured with other financing — such as holdco debt or securitized bonds — to help preserve their ownership. The latter’s Achilles heel has always been the prospect of PG&E emerging from chapter 11 burdened with new obligations that exist partly to shield shareholders from the total wipe-out often experienced in a bankruptcy (see this). Nonetheless, last week’s settlement by the company was a serious tactical blow to the bondholders. So their latest move to ditch the holdco element appears designed to once again highlight this issue of post-bankruptcy burdens on PG&E, and give Newsom pause. The feasibility of that holdco debt is doubtful. Possibly, the company hopes it could be replaced or offset at some point either with securitized bonds (although that effort got nowhere over the summer) or even eventual recovery of costs related to the Tubbs Fire via rates, if regulators allowed it.For Newsom, both choices carry risks, not least because both involve some sort of reward for politically unpalatable hedge funds. On the other hand, unless he really plans on pushing for state or municipal ownership — which is no silver bullet — the need for viable public-market financing means he would have to get over that anyway.The bondholders’ plan, if its commitments hold up, still has the benefit of a less-levered utility emerging from chapter 11. On the other hand, the company’s careful assembly of settlements with the main claimants allows it to argue it can get PG&E out of bankruptcy — and off Newsom’s desk — relatively soon. Newsom may try to split the difference by conditioning approval on more concessions from the shareholder group, such as finding a palatable (if dilutive) alternative to that holdco debt. In any case, Elliott’s salvo was aimed with precision.(1) This assumes a $48 billion regulatory asset base, 52% equity financing and 10.25% allowed return on equity.To contact the author of this story: Liam Denning at ldenning1@bloomberg.netTo contact the editor responsible for this story: Mark Gongloff at mgongloff1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • GlobeNewswire

    DEADLINE ALERT for TEUM, INFY, PCG, and REAL: Law Offices of Howard G. Smith Reminds Investors of Class Actions on Behalf of Shareholders

    Law Offices of Howard G. Smith reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion. Investors suffering losses on their investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in these class actions at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

  • Pimco, Elliott Group Press Newsom to Reject PG&E’s Restructuring Plan
    Bloomberg

    Pimco, Elliott Group Press Newsom to Reject PG&E’s Restructuring Plan

    (Bloomberg) -- Elliott Management Corp. criticized PG&E Corp.’s restructuring plan, saying it doesn’t meet California’s guidelines and jeopardizes the long-term health of the company.The New York hedge fund, which is one of PG&E’s largest creditors, on Thursday came out publicly for the first time against the company’s plan, saying in a statement that its own proposal would leave California’s largest utility in better financial shape when it emerges from bankruptcy.“The PG&E plan is not in the best interests of California residents, small businesses and commercial and industrial customers within PG&E’s service territory,” Elliott said in the statement. “It was crafted with the exclusive objective of maximizing value for existing shareholders at the expense of the company’s critical stakeholders, including most importantly its customers and employees.”Elliott said it believed the $10 billion in added debt included in the company plan would likely lead it to be “a sub-investment grade, junk-bond issuer.” It also argued that the roughly $1 billion in cash diverted under PG&E’s plan for interest and shareholder payments would limit the utility’s ability to invest in critical safety upgrades and infrastructure, among other issues.Elliott’s comments Thursday come as California Governor Gavin Newsom is set to decide whether to support PG&E’s proposed $13.5 billion payout to wildfire victims. The deal struck by PG&E with the victims could be a death knell for the plan put forth by Elliott and its partners, which also contains a $13.5 billion payout to victims. If it is approved, it would likely let PG&E’s rival plan proceed.“It is clear that only a reorganization plan that puts PG&E in a meaningfully stronger financial position than when it entered bankruptcy, while compensating wildfire victims fairly and maintaining true rate-neutrality, should be allowed to move forward,” said Jeff Rosenbaum, portfolio manager at Elliott.He argued the creditor’s plan meets many of the state’s goals.Elliott called on California to ensure that any restructuring plan for PG&E contain an overhaul of governance and management, limit the utility’s total debt to a moderate level and eliminate any financial engineering that would pass costs off to ratepayers.Read More: PG&E’s Settlement Likely a ‘Fatal Blow’ to Bondholder Plan: CitiNathan Click, a spokesman for the governor, said earlier this week that any agreement would need to “treat victims fairly.” The company’s final reorganization plan needs to also prove fair for workers and customers, he said.PG&E shares fell 1% to $12.01 at 9:30 a.m. in New York trading.Wildfire LiabilitiesPG&E declared bankruptcy in January after its equipment was blamed for starting catastrophic blazes in 2017 and 2018. The fires saddled the company with an estimated $30 billion worth of liabilities.The creditor group, led by Elliott and Pacific Investment Management Co., was first to reach a deal with wildfire victims, agreeing to pay them $13.5 billion while PG&E initially proposed just $8.4 billion. But the utility later raised its offer and won over fire victims, announcing a settlement last week.A representative for PG&E was not immediately available for comment on Thursday. PG&E said in a statement earlier this week that it believes its reorganization plan meets all state requirements for an exit from bankruptcy. The utility described its proposal as “fully financeable” and said payments to victims “will not take away from our safety investments.”The bondholders have offered to inject as much as $20 billion in cash into PG&E in exchange for almost all of the company’s equity. The proposal would effectively wipe out the utility’s current shareholders, including hedge funds that had wrested control of its board earlier this year.To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.netTo contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, ;Liana Baker at lbaker75@bloomberg.net, Tina DavisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Elliott Bashes PG&E Bankruptcy Plan as Failing State Guidelines
    Bloomberg

    Elliott Bashes PG&E Bankruptcy Plan as Failing State Guidelines

    (Bloomberg) -- Elliott Management Corp. criticized PG&E Corp.’s restructuring plan, saying it doesn’t meet California’s guidelines and jeopardizes the long-term health of the company.The New York hedge fund, which is one of PG&E’s largest creditors, on Thursday came out publicly for the first time against the company’s plan, saying in a statement that its own proposal would leave California’s largest utility in better financial shape when it emerges from bankruptcy.“The PG&E plan is not in the best interests of California residents, small businesses and commercial and industrial customers within PG&E’s service territory,” Elliott said in the statement. “It was crafted with the exclusive objective of maximizing value for existing shareholders at the expense of the company’s critical stakeholders, including most importantly its customers and employees.”Elliott said it believed the $10 billion in added debt included in the company plan would likely lead it to be “a sub-investment grade, junk-bond issuer.” It also argued that the roughly $1 billion in cash diverted under PG&E’s plan for interest and shareholder payments would limit the utility’s ability to invest in critical safety upgrades and infrastructure, among other issues.Elliott’s comments Thursday come as California Governor Gavin Newsom is set to decide whether to support PG&E’s proposed $13.5 billion payout to wildfire victims. The deal struck by PG&E with the victims could be a death knell for the plan put forth by Elliott and its partners, which also contains a $13.5 billion payout to victims. If it is approved, it would likely let PG&E’s rival plan proceed.“It is clear that only a reorganization plan that puts PG&E in a meaningfully stronger financial position than when it entered bankruptcy, while compensating wildfire victims fairly and maintaining true rate-neutrality, should be allowed to move forward,” said Jeff Rosenbaum, portfolio manager at Elliott.He argued the creditor’s plan meets many of the state’s goals.Elliott called on California to ensure that any restructuring plan for PG&E contain an overhaul of governance and management, limit the utility’s total debt to a moderate level and eliminate any financial engineering that would pass costs off to ratepayers.Read More: PG&E’s Settlement Likely a ‘Fatal Blow’ to Bondholder Plan: CitiNathan Click, a spokesman for the governor, said earlier this week that any agreement would need to “treat victims fairly.” The company’s final reorganization plan needs to also prove fair for workers and customers, he said.PG&E shares fell 1% to $12.01 at 9:30 a.m. in New York trading.Wildfire LiabilitiesPG&E declared bankruptcy in January after its equipment was blamed for starting catastrophic blazes in 2017 and 2018. The fires saddled the company with an estimated $30 billion worth of liabilities.The creditor group, led by Elliott and Pacific Investment Management Co., was first to reach a deal with wildfire victims, agreeing to pay them $13.5 billion while PG&E initially proposed just $8.4 billion. But the utility later raised its offer and won over fire victims, announcing a settlement last week.A representative for PG&E was not immediately available for comment on Thursday. PG&E said in a statement earlier this week that it believes its reorganization plan meets all state requirements for an exit from bankruptcy. The utility described its proposal as “fully financeable” and said payments to victims “will not take away from our safety investments.”The bondholders have offered to inject as much as $20 billion in cash into PG&E in exchange for almost all of the company’s equity. The proposal would effectively wipe out the utility’s current shareholders, including hedge funds that had wrested control of its board earlier this year.To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.netTo contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, ;Liana Baker at lbaker75@bloomberg.net, Tina DavisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • GlobeNewswire

    SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in PG&E Corporation of Class Action Lawsuit and Upcoming Deadline – PCG

    Pomerantz LLP announces that a class action lawsuit has been filed on behalf of shareholders of PG&E Corporation (“PG&E” or the “Company”) (NYSE: PCG) against certain of the Company’s officers. The class action, filed in United States District Court, for the Northern District of California, and indexed under 19-cv-06996, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired PG&E securities between December 11, 2018, and October 11, 2019, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

  • Business Wire

    PG&E Adds More Weather Stations and High-Definition Cameras to Monitor Wildfire Conditions

    As part of its Community Wildfire Safety Program (CWSP), Pacific Gas and Electric Company (PG&E) has now installed more than 600 weather stations and 130 high-definition (HD) cameras across its service area. PG&E will continue to expand these networks in high fire-threat areas to enhance weather forecasting and modeling and improve the company’s ability to predict and respond to extreme wildfire danger.

  • GlobeNewswire

    Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against PG&E Corporation, Twitter, Sealed Air, and Abeona Therapeutics and Encourages Investors to Contact the Firm

    Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of PG&E Corporation (PCG), Twitter, Inc. (TWTR), Sealed Air Corporation (SEE), and Abeona Therapeutics, Inc. (ABEO). On October 12, 2019, the New York Times published an article reporting on PG&E’s efforts to deal with the rolling power cuts it had implemented in California aimed at minimizing wildfire risk.

  • GlobeNewswire

    PCG DEADLINE: Zhang Investor Law Reminds Investors of December 24 Deadline in Securities Class Action Lawsuit Against PG&E Corporation– PCG 

    Zhang Investor Law announces a securities class action lawsuit on behalf of shareholders who bought shares of PG&E Corporation (PCG) between December 11, 2018 and October 11, 2019, inclusive (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than December 24, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

  • San Jose City Council backs mayor's plan to make PG&E customer-owned
    American City Business Journals

    San Jose City Council backs mayor's plan to make PG&E customer-owned

    Mayor Sam Liccardo's effort, which has the support of more than 100 other California mayors, comes as PG&E; reaches a major settlement with customers affected by wildfires.