PG&E to record $2.5B charge for California wildfires — and warns it could get worse

PG&E Corp. and its subsidiary, Pacific Gas and Electric, announced today in an 8-K filed with the U.S. Securities and Exchange Commission that it will record a $2.5 billion pre-tax charge related to deadly wildfires in Northern California last year. The charge relates to the liability for the damage from 10 wildfires, but does not include potential government penalties or fines, or the impacts of seven other fires where PG&E does not believe it will take a loss. Earlier this month, Cal Fire, the state's fire management agency, said electric equipment owned by PG&E caused 12 wildfires that killed 18 people and burned hundreds of square miles. Some industry observers believe this could lead to bankruptcy for the utility.