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PG&E Sheds 30%, Brings Utilities Down Midday

Published 11/14/2018, 11:56 AM
Updated 11/14/2018, 12:13 PM
© Reuters.

© Reuters.

Investing.com - Pacific Gas & Electric plunged in midday trading, pulling down the utility sector as a whole.

PG&E, familiar in the role of corporate villain to those who have seen “Erin Brockovich,” sold off sharply after it said its potential liability for the California wildfires could exceed its current insurance coverage.

PG&E (NYSE:PCG) stock tumbled about 30% at 12:13 PM ET (17:13 GMT).

The S&P 500 Utilities index fell about 1%.

Also struggling in the index were NextEra Energy (NYSE:NEE), which lost 1.8%, and Sempra Energy (NYSE:SRE), which fell 1.3%.

The Camp wildfire, which has killed more than 40 people, is being investigated, and PG&E told regulators it experienced problems with transmission lines or substations in areas around the time the blazes were reported to have started.

In an SEC filing company said it withdrew $3 billion from a credit facility in anticipation of liabilities.

Meanwhile, a group of three law firms representing multiple victims of the Camp wildfire has filed a lawsuit against PG&E alleging negligence and health and safety code violations.

-- Reuters contributed to this report

Latest comments

pg&e out 3 billion to cover losses, stock value off 50% in 1 week and at least 50 dead in California. When the stuff goes south, it really goes south!
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