Case Study

PG&E Liabilities for California Wildfires Led to Bankruptcy

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Electrical Distribution Substation, Power Lines, Aerial View

About this Case Study

The case study discusses PG&E’s legal and financial risks associated with wildfires caused by poorly maintained energy infrastructure. It also examines the broader implications of nature-related risks for utility companies in the western USA.

Key outcomes

  • PG&E incurred over USD 5 billion in settlements and filed for bankruptcy after being found liable for a series of California wildfires from 2015-2018.
  • PG&E’s share price declined by 91% in the 15 months following a fire incident in the Napa Valley in 2017.
  • The electric utilities sector is highly dependent on nature. The sector needs to adapt their risk management strategies to account for increasing nature-related risks.
Download Case Study (PG&E Liabilities for California Wildfires Led to Bankruptcy)

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