PG&E President and COO to Retire During Wildfire Lawsuit
14 July 2018 - 1:13AM
Dow Jones News
By Waverly Colville
Pacific Gas and Electric Co. President and Chief Operating
Officer Nick Stavropoulos will retire in September, the company
said Friday.
In the coming months, the utility's board will reorganize the
company structure and search for a replacement for
Stavropoulous.
PG&E Corp., the utility's parent, is currently facing a
class-action lawsuit from shareholders for the company's alleged
role in several wildfires in California. The California Department
of Forestry and Fire Protection last month released the results of
an investigation that found 12 of California's wildfires in October
2017 were caused by PG&E's electric power and distribution
lines, conductors and power poles. Of these, eight of the fires
were caused by violations of state law, the investigation
found.
The company also faces more than 300 civil suits from several
groups, individuals and insurance companies for fire-related
damages and deaths. And last month, PG&E said that it would
take a $2.5 billion charge in its second quarter related to the
wildfires.
PG&E said in response to the suits that it shouldn't have to
face liability under inverse condemnation because it cannot absorb
the costs through tax increases, as a government entity can.
The retirement announcement comes three days after the company
announced that Barry Anderson, vice president for electric
distribution, will take on a role leading the newly formed Wildfire
Resiliency and Emergency Management group, which will oversee the
company's wildfire prevention and response efforts and emergency
preparedness.
PG&E shares are down 34% in the last 12 months and were down
0.41% to $43.47 in recent trading.
Write to Waverly Colville at Waverly.Colville@wsj.com
(END) Dow Jones Newswires
July 13, 2018 10:58 ET (14:58 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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