PG&E Shares Plummet on Bankruptcy Talk

PG&E, California's largest electric utility, is facing $30 billion in liabilities due to wildfires in 2017 and 2018. With a shrinking market cap, there are concerns about its ability to pay claims, potentially leading to bankruptcy. The state legislature and regulators may need to intervene to provide financial support. Newly sworn-in Governor Gavin Newsom is expected to play a significant role in addressing the issue, following the stance of former Governor Jerry Brown, who opposed utility bankruptcy. Newsom has expressed urgency in resolving the utility's concerns.

What is the primary reason for PG&E's financial crisis?

• A decrease in electricity demand

• Increased competition

• Poor management decisions

• Liabilities from wildfires

How much in liabilities is PG&E facing due to the wildfires?

• $40 billion

• $10 billion

• $20 billion

• $30 billion

What role might the state legislature and regulators play in PG&E's situation?

• They might increase electricity rates

• They might sell PG&E to a private company

• They might provide financial support

• They might shut down PG&E

Who was the governor before Gavin Newsom, and what was his stance on the utility's bankruptcy?

• Gray Davis, who was neutral

• Pete Wilson, who had no comment

• Arnold Schwarzenegger, who supported bankruptcy

• Jerry Brown, who opposed bankruptcy

What has Governor Gavin Newsom expressed about the PG&E crisis?

• He wants to address the issue urgently

• He wants to delay addressing the issue

• He supports PG&E's bankruptcy

• He has no interest in the matter