PG&E's stock surges after $11 billion settlement of wildfire claims
Shares of PG&E Corp. shot up 11% in premarket trading Friday, after the San Francisco-based utility said it has reached an agreement "in principle" with 85% of insurance claims to an $11 billion settlement relating to the 2017 and 2018 wildfires. The settlement will be implemented pursuant to PG&E's Chapter 11 plan of reorganization. The company affirmed the total $14 billion equity financing commitment target for the reorganization plan. "Today's settlement is another step in doing what's right for the communities, businesses, and individuals affected by the devastating wildfires," said Chief Executive Bill Johnson. The settlement follows the $1 billion settlement reached in June with a number of local public entities. The stock has tumbled 57.5% year to date through Thursday, while the Dow Jones Utility Average has climbed 19.7% and the Dow Jones Industrial Average has gained 16.5%.
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