Wildfires Send California Utility Stock Prices Plummeting

The video discusses the financial and legal challenges faced by PG&E and Edison due to California fires. It highlights the liabilities from past and recent fires, the strict liability laws in California, and the impact on stock prices. The video also touches on the potential financial strategies like issuing bonds to manage these liabilities and the broader implications of climate change on utility companies.

What is the estimated financial damage caused by the recent California fires?

• At least 19 billion

• At least 10 billion

• At least 5 billion

• At least 25 billion

What law holds utilities accountable for fires caused by their equipment in California?

• Utility Accountability Law

• Negligence Law

• Strict Liability Law

• Fire Safety Law

What was the legislative response to help PG&E manage its liabilities?

• Increasing electricity prices

• Government bailout

• Reducing utility rates

• Issuing bonds and charging customers

What must PG&E prove to issue bonds for liability management?

• That they have a strong balance sheet

• That they were negligent

• That they have no other financial means

• That they have a high customer base

How have the recent fires affected PG&E and Edison's stock prices?

• Stock prices have doubled

• Stock prices have decreased

• Stock prices have remained stable

• Stock prices have increased