Climate Changed

A PG&E Bankruptcy Would Leave Utility in Turmoil for Years

  • History shows filings aren’t fatal to utility companies
  • S&P Global Ratings on Monday downgraded PG&E’s debt to junk

Photographer: David Paul Morris/Bloomberg

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The lights would stay on if California utility giant PG&E Corp. files for bankruptcy. But the company, its customers and investors would be set for years of uncertainty.

While utility bankruptcies are rare, they can result in anything from a healthy company to a breakup, with business units sold off like spare parts. For consumers, the fallout likely means higher rates.