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Pacific Gas & Electric : Utility shares tank after notice on wildfire evidence

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10/14/2017 | 01:32 am

LOS ANGELESPacific Gas and Electric Co. shares plummeted 10.5 per cent Friday, after state regulators directed the company to preserve any evidence of failed poles, conductors or other equipment that might be connected to Northern California wildfires that killed 32 people and reduced entire neighbourhoods to ash and rubble.

The steep, one-day fall means the value of the giant utility, or market capitalization, dropped about $3.5 billion, from $33.1 billion to $29.6 billion.

California fire officials are investigating downed power lines and other utility equipment as possible causes of massive wildfires that have burned in eight counties and destroyed at least 5,700 homes and buildings.

The California Public Utilities Commission also directed the utility to tell employees and contractors to preserve emails and other documents related to potential causes of the fires, maintenance and tree trimming.

California officials say it will be weeks before they determine the causes of the wildfires sweeping the state.

The California Department of Forestry and Fire Protection has said it's unclear if downed power lines and live wires resulted from fires, or started them.

The utility's stock fell $6.78 on Friday, to $57.72.

Earlier this year, state utility regulators fined PG&E $8.3 million for failing to maintain a power line that sparked a massive blaze in Northern California that destroyed 549 homes and killed two people. A state fire investigation found the utility and its contractors failed to maintain a grey pine tree that slumped into a power line igniting the September 2015 fire in Amador County.

The blaze burned for three weeks, killing two people and destroying more than 900 structures, including about 550 homes.

© 2017 The Canadian Press. All rights reserved., source Canadian Press DataFile

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