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PG&E Says Gas Penalty Would Push to Brink of Bankruptcy

PG&E Corp., owner of California’s largest electric utility, said it may be pushed to the edge of bankruptcy if state regulators impose a proposed $2.25 billion penalty for a deadly 2010 pipeline explosion.

If approved, the company would pay a total of $4 billion, including money already spent on pipeline upgrades and safety work, Chairman and Chief Executive Officer Tony Earley said in an interview at Bloomberg headquarters in New York today. The San Francisco-based company would need to sell about $2 billion in additional stock, he said.