Utility Company That May Be On The Hook For Camp Fire: Cost of Damages Exceeds Our Insurance Coverage

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Posted: Nov 15, 2018 6:25 PM
Utility Company That May Be On The Hook For Camp Fire: Cost of Damages Exceeds Our Insurance Coverage

Pacific Gas & Electric, commonly referred to as PG&E, the utility company in Northern California, may be responsible for the Camp Fire that's currently burning Northern California. But now, the utility company is saying that if they're found to be the culprit, the cost of damages that have occurred as a result of the fire may exceed their insurance coverage, ABC7 reported.

"While the cause of the Camp Fire is still under investigation, if the Utility's equipment is determined to be the cause, the Utility could be subject to significant liability in excess of insurance coverage that would be expected to have a material impact on PG&E Corporation's and the Utility's financial condition, results of operations, liquidity, and cash flows," the utility company told the Securities and Exchange Commission on Tuesday. 

According to the letter, PG&E has coverage for $1.4 billion in insurance coverage between August 1, 2018 through July 31, 2019.

The Camp Fire that's burning in Butte County is the deadliest wildfire in California state history. As of now, 56 are dead and 297 people are missing.