PGE Corp., the California utility giant facing billions of dollars in wildfire liabilities, may notify employees as soon as Monday that it’s preparing a potential bankruptcy filing, according to people familiar with the situation
The San Francisco-based utility owner is planning to send the notice to fulfill a state law that requires the company to alert workers at least 15 days before a change of control, said the people, asking not to be identified because the information isn’t public. The notice wouldn’t necessarily make a bankruptcy filing certain and the company could still decide not to if its situation changes, one of the people said.
PG&E’s deepening financial crisis has already spread to the companies that supply its natural gas and generate electricity for its customers. At least two small gas suppliers have restricted sales to PG&E out of concern that the company won’t be able to pay, people with direct knowledge of the situation said earlier this week. Some banks are taking a long look at a potential $2 billion debt financing for the Geysers, the world’s largest geothermal complex, because it supplies the utility, people familiar with the matter also said this week.
On Thursday, S&P Global Ratings cut the credit rating of Berkshire Hathaway Energy’s 550-megawatt Topaz Solar Farms to junk, noting that the plant counts on PG&E for all of its revenue.
If you work there, you really don’t have much choice. Up until the recent fires, PG&E was fairly rock solid. Yeah, people hate them but they usually were able to weather the storm. This one is bigger, but we all know who is paying, us!!!
Most companies don’t allow 401k investment in company stock now. It’s considered bad practice after Enron. The pension fund won’t invest in it either. They pay hedge funds huge fees for lagging the S&P500
As you can imagine, PG&E has a lot of old timers/lifers. So, what do they do with their company stock? Aren’t they still just holding it as part of their retirement packages?
In downtown they were considered good company to work for. Pensions, generous benefits and very easy job. Flush with money to spend. At one point they had 200 people in their IT PMO. They had to restructure after the San Bruno disaster. A private company working like a government department. This was bound to happen.
Yeah, I guess not outright stock compensation like what you are thinking (tech firms) but according to my friend who worked there eons ago he was able to buy shares and pg&e matched up to a certain point.
I worked for PGE over 40 years ago. A company run by clerks. Union employees act like government employees. PGEgets paid 6% on costs. No incentive to innovate or to make money.
