SAN FRANCISCO--(BUSINESS WIRE)--
PG&E Corporation (NYSE: PCG) today announced that its Board of Directors
has determined to suspend the quarterly cash dividend on the
Corporation’s common stock, beginning with the fourth quarter of 2017,
citing uncertainty related to causes and potential liabilities
associated with the extraordinary October 2017 Northern California
wildfires.
In addition, the Board of Directors of the Corporation’s utility
subsidiary, Pacific Gas and Electric Company, determined to suspend the
dividend on the utility’s preferred stock, beginning with the
three-month period ending Jan. 31, 2018, citing the same uncertainty.
No causes have yet been identified for any of the unprecedented
wildfires, which continue to be the subject of ongoing investigations.
However, California is one of the only states in the country in which
courts have applied inverse condemnation to events caused by utility
equipment. This means that if a utility’s equipment is found to have
been a substantial cause of the damage in an event such as a wildfire –
even if the utility has followed established inspection and safety rules
– the utility may still be liable for property damages and attorneys’
fees associated with that event.
“After extensive consideration and in light of the uncertainty
associated with the causes and potential liabilities associated with
these wildfires as well as state policy uncertainties, the PG&E boards
determined that suspending the common and preferred stock dividends is
prudent with respect to cash conservation and is in the best long-term
interests of the companies, our customers and our shareholders,” said
PG&E Corporation Chair of the Board Richard C. Kelly.
“We fully recognize the importance of dividends and intend to revisit
the issue as we get more clarity. In the meantime, PG&E is committed to
working with state policymakers to address the negative investment
environment that strict liability under inverse condemnation is creating
for California’s utilities. This ultimately hurts our customers and the
state. The company also remains committed to supporting recovery and
rebuilding efforts by those communities that were impacted by these
devastating fires,” he said.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a Fortune 200 energy-based holding
company headquartered in San Francisco. It is the parent company of
Pacific Gas and Electric Company, California’s largest investor-owned
utility. PG&E serves nearly 16 million Californians across a
70,000-square-mile service area in Northern and Central California. For
more information, visit www.pgecorp.com and www.pge.com.
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Source: PG&E Corporation