PG&E President and COO to Retire During Wildfire Lawsuit

By Waverly Colville 

Pacific Gas and Electric Co. President and Chief Operating Officer Nick Stavropoulos will retire in September, the company said Friday.

In the coming months, the utility's board will reorganize the company structure and search for a replacement for Stavropoulous.

PG&E Corp., the utility's parent, is currently facing a class-action lawsuit from shareholders for the company's alleged role in several wildfires in California. The California Department of Forestry and Fire Protection last month released the results of an investigation that found 12 of California's wildfires in October 2017 were caused by PG&E's electric power and distribution lines, conductors and power poles. Of these, eight of the fires were caused by violations of state law, the investigation found.

The company also faces more than 300 civil suits from several groups, individuals and insurance companies for fire-related damages and deaths. And last month, PG&E said that it would take a $2.5 billion charge in its second quarter related to the wildfires.

PG&E said in response to the suits that it shouldn't have to face liability under inverse condemnation because it cannot absorb the costs through tax increases, as a government entity can.

The retirement announcement comes three days after the company announced that Barry Anderson, vice president for electric distribution, will take on a role leading the newly formed Wildfire Resiliency and Emergency Management group, which will oversee the company's wildfire prevention and response efforts and emergency preparedness.

PG&E shares are down 34% in the last 12 months and were down 0.41% to $43.47 in recent trading.

Write to Waverly Colville at [e-mail]

(END) Dow Jones Newswires

July 13, 2018 10:58 ET (14:58 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.