0001140361-16-062673.txt : 20160502 0001140361-16-062673.hdr.sgml : 20160502 20160502090025 ACCESSION NUMBER: 0001140361-16-062673 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20160428 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160502 DATE AS OF CHANGE: 20160502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PG&E Corp CENTRAL INDEX KEY: 0001004980 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 943234914 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12609 FILM NUMBER: 161610009 BUSINESS ADDRESS: STREET 1: 77 BEALE STREET STREET 2: P.O. BOX 770000 CITY: SAN FRANCISCO STATE: CA ZIP: 94177 BUSINESS PHONE: 4159731000 MAIL ADDRESS: STREET 1: 77 BEALE STREET STREET 2: P.O. BOX 770000 CITY: SAN FRANCISCO STATE: CA ZIP: 94177 FORMER COMPANY: FORMER CONFORMED NAME: PG&E CORP DATE OF NAME CHANGE: 19961219 FORMER COMPANY: FORMER CONFORMED NAME: PG&E PARENT CO INC DATE OF NAME CHANGE: 19951214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFIC GAS & ELECTRIC Co CENTRAL INDEX KEY: 0000075488 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 940742640 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02348 FILM NUMBER: 161610010 BUSINESS ADDRESS: STREET 1: 77 BEALE ST STREET 2: P O BOX 770000 CITY: SAN FRANCISCO STATE: CA ZIP: 94177 BUSINESS PHONE: 4159737000 MAIL ADDRESS: STREET 1: 77 BEALE STREET STREET 2: P O BOX 770000 CITY: SAN FRANCISCO STATE: CA ZIP: 94177 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC GAS & ELECTRIC CO DATE OF NAME CHANGE: 19920703 8-K 1 form8k.htm PG&E CORPORATION 8-K 4-28-2016


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: April 28, 2016
(Date of earliest event reported)
 
Commission File Number
 
Exact Name of Registrant as specified in its charter
 
State or Other Jurisdiction of Incorporation or Organization
 
IRS Employer Identification Number
1-12609
 
PG&E CORPORATION
 
California
 
94-3234914
1-2348
 
PACIFIC GAS AND ELECTRIC COMPANY
 
California
 
94-0742640
 
 
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
 (Address of principal executive offices) (Zip Code)
(415) 973-1000
(Registrant's telephone number, including area code)
 
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
(Address of principal executive offices) (Zip Code)
(415) 973-7000
(Registrant's telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 



Item 8.01 Other Events.

Investigation of the Butte Fire

On April 28, 2016, the California Department of Forestry and Fire Protection (“Cal Fire”) released its report of the investigation of the origin and cause of the “Butte fire,” the wildfire that ignited and spread in Amador and Calaveras Counties in Northern California in September 2015.  Cal Fire’s  report concluded that the  wildfire  was caused when a Gray Pine tree contacted a Pacific Gas and Electric Company (the “Utility”)  electric line which ignited portions of the tree, and determined that the failure by the Utility to identify certain potential hazards during its vegetation management program ultimately led to the failure of the tree.  In a press release also issued on April 28, 2016, Cal Fire indicated that it will seek to recover firefighting costs in excess of $90 million from the Utility.

In connection with the Butte fire, approximately 31 complaints have been filed against the Utility and its vegetation management contractors in the Superior Court of California in both the County of Calaveras and the County of San Francisco, involving more than 700 individual plaintiffs and their insurance companies.  In response to plaintiffs’ and the Utility’s requests, the California Judicial Council has authorized the coordination of all cases in the Superior Court of California, Sacramento County. Plaintiffs have begun to present to the Utility claims seeking early resolution of preference cases (individuals who due to their age and/or physical condition are not likely to meaningfully participate in a trial under normal scheduling).  The number of complaints may increase in the future.  An initial case management conference was held on April 22, 2016 and the next case management conference is currently scheduled for May 24, 2016.

In connection with this matter, the Utility may be liable for property damages without having been found negligent, through the theory of inverse condemnation.  In addition, the Utility may be liable for fire suppression costs, personal injury damages, and other damages, if the Utility were found to have been negligent.

Based on the evidence described in the Cal Fire report that the Gray Pine tree contacted an electric line of the Utility, the Utility believes that it is probable that it will incur a loss of $350 million for property damages in connection with this matter, which corresponds to the lower end of the range of its reasonably estimated losses.  This amount is based on estimates about the number, size, and type of structures damaged or destroyed, and assumptions about the contents of such structures and other property damage.  The Utility currently is unable to reasonably estimate the upper end of the range.  The Utility also recorded a charge of $31 million for the quarterly period ended on March 31, 2016, which includes costs related to the Butte fire response and clean-up, and other costs.

The Utility also believes that it is reasonably possible that it will incur a loss in excess of these amounts, for additional costs related to fire suppression, personal injury damages and other damages.  The Utility believes that $90 million is a reasonable estimate of fire suppression costs.  The Utility currently is unable to reasonably estimate other costs.

The Utility has insurance coverage for third party claims.  If the amount of insurance is insufficient to cover the Utility’s liability resulting from the Butte fire, or if insurance is otherwise unavailable, PG&E Corporation’s and the Utility’s financial condition, results of operations, or cash flows could be materially affected.

As a result of the Cal Fire report, additional investigations and proceedings may be opened, the outcome of which PG&E Corporation and the Utility are unable to predict.
 


For more information about the risks and uncertainties related to the Butte fire, see the sections entitled “Risk Factors” and “Cautionary Language Regarding Forward-Looking Statements” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in PG&E Corporation and the Utility’s Annual Report on Form 10-K for the year ended December 31, 2015 and in their subsequent reports filed with the Securities and Exchange Commission.

A copy of the Utility’s public statement issued on April 28, 2016 is furnished as Exhibit 99 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits
 
Exhibit 99
Public Statement Issued on April 28, 2016
 


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

 
PG&E CORPORATION
     
 
By:
/s/ Linda Y.H. Cheng
Dated:  May 1, 2016
 
LINDA Y.H. CHENG
Vice President, Corporate Governance and Corporate Secretary
   
 
PACIFIC GAS AND ELECTRIC COMPANY
     
 
By:
/s/ Linda Y.H. Cheng
Dated:  May 1, 2016
 
LINDA Y.H. CHENG
Vice President, Corporate Governance and Corporate Secretary
 

Exhibit Index


Public Statement Issued on April 28, 2016
 
 

EX-99 2 ex_99.htm EXHIBIT 99

Exhibit 99
 
 
 
Corporate Relations  |  77 Beale Street  |  San Francisco, CA  94105  |  415.973.5930 | www.pge.com
 
 
April 28, 2016
 
PG&E Statement Regarding CAL FIRE Investigation of Butte Fire Ignition

SAN FRANCISCO - Pacific Gas and Electric Company (PG&E) today issued the following statement in response to a report released by the California Department of Forestry and Fire Protection (CAL FIRE) on the Butte Fire.

“First and foremost, our thoughts and prayers continue to be with the victims and the communities who suffered losses as a result of the Butte fire. We are committed to doing the right thing for them and to promptly resolving their claims. We have already begun to address many claims.

We want to thank CAL FIRE and all first responders for their bravery and commitment in responding to this major fire. We cooperated fully with CAL FIRE’s investigation of the fire and we appreciate the thoroughness of its report.

Based on our preliminary review, we accept the report’s finding that a tree made contact with a power line, but we do not believe it is clear what caused the tree to fail or that vegetation management practices fell short.

Effective vegetation management is critically important to fire safety and we want to reassure all of our customers and their families that we are unequivocally committed to their safety.  We monitor approximately 50 million trees a year and we trim or remove more than one million trees annually.

Our vegetation management program is among the very best in the industry and was expanded in 2014 in response to California’s historic drought to include special air and foot patrols, funding for lookout towers and cameras for early fire detection and funding for fire fuel reduction and emergency access projects and public education.

Despite these efforts, we recognize the hardships that this terrible fire caused and we are committed to helping our friends and neighbors recover.”

About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, with more than 20,000 employees, the company delivers some of the nation’s cleanest energy to nearly 16 million people in Northern and Central California. For more information, visit www.pge.com/ and www.pge.com/en/about/newsroom/index.page.

 

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