S&P Dow Jones Indices will remove PG&E Corp. from both S&P 500 index and Dow Jones Utility Average as the holding company of Pacific Gas and Electric Co. prepares to file for Chapter 11 bankruptcy protection later in January and is no longer eligible for the indexes.
California-headquartered Sempra Energy will replace PG&E Corp. on Dow Jones Utility Average, while Wayne, Pa.-based medical device maker Teleflex Inc. will replace the beleaguered company on S&P 500. The changes to the indexes will be effective prior to the opening of trading on Jan. 18, S&P Dow Jones Indices said in two separate Jan. 15 news releases.
PG&E Corp. and its utility subsidiary, Pacific Gas and Electric, on Jan. 14 filed a 15-day notice that the companies plan to seek reorganization under Chapter 11 on or about Jan. 29. The reorganization is expected to help the parent company and its utility resolve billions of dollars in potential liabilities as a result of the 2017 and 2018 Northern California wildfires, while continuing to provide service to customers.
PG&E Corp.'s market capitalization tanked in the weeks and months leading up to the bankruptcy plan announcement as liabilities related to deadly California wildfires loomed larger and larger. The shares fell 47% in 2018 and then dropped by nearly half again on the morning of Jan. 14, falling below $10 after trading near $50 as recently as November 2018. Its market capitalization has shrunk to approximately $3.58 billion.