NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, January 23, 2019

By David R. Baker and Eric Roston

The plan by PG&E Corp., owner of California’s largest electric utility, to file for bankruptcy protection won’t be felt just by its ratepayers, employees and suppliers. It will have an effect on whether residents of areas devastated by wildfires will receive the compensation they’re expecting, and whether California can live up to its ambitious goals on climate change. But the decision also represents a shock to investors who just two months ago were paying above par for PG&E’s bonds. Most broadly, it points to the danger that global warming could pose for many companies. Those risks aren’t always obvious, and assessments of them are often buried deep within securities disclosure. Is it time for them to move from the fine print to become an active market concern?

Photo courtesy of Señor Codo.