Pacific Gas and Electric says it expects to become more profitable than ever after it emerges from bankruptcy and pays off more than $25 billion in losses sustained in catastrophic wildfires ignited by its outdated equipment.
The nation’s largest utility shared its rosy outlook this week, along with its sobering results for 2019.
PG&E wound up losing $7.6 billion last year, widening from its previous record loss of $6.8 billion in 2018. Last year’s loss included a $3.6 billion setback during the final three months of the year.
The dismal numbers marked a low point the San Francisco company’s 114-year history as it cleaned up a financial mess caused by its liability for a series of deadly fires in 2017 and 2018. The crippling burden prompted PG&E to file for bankruptcy protection 13 months ago, marking its second stint in bankruptcy in two decades.
The losses reported Tuesday primarily stemmed from the cost of covering various settlements reached with PG&E’s wildfire victims as part of the company’s effort to meet a June 30 deadline for getting out of bankruptcy.