PG&E Corp.'s board of directors on Dec. 20 suspended a quarterly cash dividend on the company's common stock starting with the fourth quarter of 2017, citing potential liabilities related to the devastating wildfires in Northern California last October.
Likewise, Pacific Gas and Electric Co.'s board also suspended the dividend on the utility's preferred stock, beginning with the three-month period ending Jan. 31, 2018, for the same reason.
"After extensive consideration and in light of the uncertainty associated with the causes and potential liabilities associated with these wildfires as well as state policy uncertainties, the PG&E boards determined that suspending the common and preferred stock dividends is prudent with respect to cash conservation and is in the best long-term interests of the companies, our customers and our shareholders," said PG&E Chair of the Board Richard Kelly.
PG&E stock was down 1.79% to $51.12 in slightly below-average trading on Dec. 20, but dropped steeply in after-hours trading. About the time the fires began, shares were trading around $68-$69. Its most recent dividend was 53 cents/share. Moody's in October estimated the company's liability for damage caused by the wildfires could be more than $2 billion.
