PG&E Suspends Dividend Payments To Shareholders After "Wine Country" Fires

PG&E Suspends Dividend Payments To Shareholders After "Wine Country" Fires 

PG&E is bracing today for another possible financial liability lawsuit. Yesterday, the utilities board of directors announced they will suspend dividend payments to shareholders out of concern regarding any financial liability in the recent “wine Country” fires in Northern California. While state fire officials continue to try to determine what ignited the October wildfires that killed 44 people and caused an estimated $9 billion dollars in property damage, investigators are looking into whether power lines or other electrical equipment sparked the blazes. In California, even if a utility is following all safety rules, it can still be held financially responsible for damage if its equipment caused the problem. PG&E Board Chairman Richard Kelly points to that reason for the temporary suspending of dividend payments to shareholders, while calling it a “prudent” move with regard to the utility’s cash holdings.

Back in June, a Judge confirmed that the company must pay Butte Fire victims damages, after state fire investigators determined that the Butte Fire was caused by a Pine Tree contacting A PG&E 12-Kilovolt overhead line.  

 

Written by KVGC Staff

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