PG&E stock was falling hard Wednesday on news of a possible link between it and the California wildfires.
A recent filing from PG&E (NYSE:PCG) notes that there was an electrical equipment malfunction shortly before the start of the California wildfires. It is possible that this malfunction is what resulted in the wildfires.
The idea that the company may be responsible for the California wildfires is devastating news for PG&E stock. This is especially true as the company notes that the damage done by the fires has far exceeded what its insurance will cover. This would result in harm to the company’s financials.
The California wildfires that are ravaging the state are some of the worst that it has ever seen. The current death total is up to 42 and over 6,5000 houses have been destroyed. This has seen the fire spread through 117,000 acres in the state, reports MarketWatch.
PG&E notes that the California wildfires have also been bad news for its customers. The power company says that there are currently some 25,000 customers without electric power due to the fires. It points out that it had to shut off gas for 12,200 customers and that it remains off due to the dangers the wildfires present.
“In many cases, immediate restoration may not be possible,” PG&E said in a statement. “In those instances, PG&E will develop a plan to rebuild the system in damaged areas.”
PCG stock was down 23% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.