A day after the California Public Utilities Commission cleared the way for Pacific Gas & Electric to secure $6 billion in debt financing for its operations – amid a chorus of boos and opposition – the nation’s largest utility filed for bankruptcy protection Tuesday in a bid to relieve itself of the potential billions in liability it could face from devastating wildfires.
At a hastily called emergency meeting Monday, the commission approved the utility giant’s request for regulatory exemptions that will let it to boost its short-term borrowing from $4 billion to $6 billion.
“The exemption granted is narrow and only grants PG&E exemptions for the purpose of obtaining debtor financing,” commission chair Michael Picker said, adding that PG&E shall not be allowed to pass on its borrowing costs to ratepayers.
Several attendees criticized the commission for calling the meeting with only a few hours notice, accusing the regulator of skirting public meeting laws so it could push through a “bailout” for the company.
