- Aug 23, 2019 6:30 pm GMT
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Troubled California utility PG&E Corp. is asking the state Legislature to let it borrow money without paying taxes so it can compensate victims of a devastating wildfire caused by its equipment.
PG&E is facing up to $30 billion in potential damages from lawsuits stemming from recent wildfires, including one last year that killed 86 people and destroyed much of the town of Paradise.
A proposed bill authored by Republican Assemblyman Chad Mayes would let the California Infrastructure and Economic Development Bank issue tax-exempt bonds on behalf of PG&E, borrowing against the company's future profits. Shareholders, not customers, would pay off the bonds. Taxpayers would not have to pay off the bonds if the shareholders default.