The largest utility in the U.S. has filed for bankruptcy as it faces billions of dollars in potential damages from wildfires in California.

Pacific Gas & Electric Corp. filed documents in a U.S. court Tuesday seeking Chapter 11 reorganization.

This has left consumers wondering what this means for them and their bills. 

First of all, PG&E does not expect this to impact any electric and natural gas service to their customers.

Will this impact my bill?

It depends on who you ask.

According to PG&E, the filing of bankruptcy will not have an impact on customers rates.

PG&E said the bankruptcy filing will not affect electricity or gas service and will allow for an “orderly, fair and expeditious resolution” of wildfire claims. The company says they will stay committed to their customers, as well as the communities affected by the Northern California wildfires.

On the other hand, legal experts say this will take years to resolve and could increase rates for PG&E customers. 

Wildfire victims?

With the filing of bankruptcy, wildfire lawsuits are immediately put on hold.

Legal experts say this means that the victims will most likely receive less money. Victims will have a smaller chance of receiving punitive damages or taking their claims to a jury.

However, legal experts also noted that state officials will be involved in the bankruptcy, and that could soften the blow to wildfire victims.

Filed for bankruptcy in 2001

In 2001, the company had to file for bankruptcy due to an electricity crisis marked by rolling blackouts and the manipulation of the energy market. They were able to emerge from bankruptcy in three years, however, they received billions in higher payments from ratepayers. 

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