Moody's Investors Service (NYSE:MCO) said the natural gas pipeline explosion in San Bruno won't have an affect on the credit rating of Pacific Gas & Electric Co. (NYSE:PCG).
It is thought the $992 million in insurance PG&E has will be adequate to cover the expenses, even with the relatively small $10 million deductible.
Last week, Standard & Poor's said they have PG&E rating on review for a potential downgrade, although it's unsure what they're seeing which would justify that, at least in the short term.
Moody's said they are maintaining a "Baa1" senior unsecured debt rating on PG&E and an "A3" senior unsecured debt rating on the subsidiary of the energy company.
The outlook by Moody's for PG&E and its subsidiary remains "Stable."
Showing posts with label Pacific Gas and Electric Company. Show all posts
Showing posts with label Pacific Gas and Electric Company. Show all posts
Tuesday, September 14, 2010
PG&E (NYSE:PCG) Offers $50,000 to San Bruno Victims, Some Return to Homes
Homeowners who still had homes and were able to return to them, can receive up to an initial $50,000 from Pacific Gas & Electric Co. (NYSE:PCG), who owned the pipeline which exploded, killing seven people, with six still unaccounted for.
It wasn't clear whether those with demolished homes were given the same amount of money at this time.
The $50,000 comes with no strings attached, and won't have to be paid by those receiving it.
Those receiving the money are not being asked to sign off on not suing PG&E in the future either.
PG&E has also paid $3 million to the city of San Bruno to help cover the costs related to the damage from the explosion.
It wasn't clear whether those with demolished homes were given the same amount of money at this time.
The $50,000 comes with no strings attached, and won't have to be paid by those receiving it.
Those receiving the money are not being asked to sign off on not suing PG&E in the future either.
PG&E has also paid $3 million to the city of San Bruno to help cover the costs related to the damage from the explosion.
Monday, September 13, 2010
PG&E (NYSE:PCG) Must Perform Systemwide Inspection Says Regulators
Pacific Gas & Electric Co. has been ordered by the California Public Utilities Commission to perform a system wide inspection of its sprawling pipelines, in response to the natural gas explosion which has claimed 7 lives so far, and destroyed 37 homes.
It wasn't clear which particular portions of the pipeline were targeted for inspection, as PG&# has over 42,000 miles of natural gas distribution pipelines and over 5,700 miles of transmission pipelines.
For sure the inspections will include what is called "high priority" areas, which are pipelines going through high-population areas.
The energy company was also told to retain any record in connection with the explosion and work related to the failed pipeline. Specifically identified was work connected to the Milpitas terminal, which was undertaken in September 2010.
Also under scrutiny will be the process PG&E has in place for inspections, along with how much of the designated budget used for inspections is actually spent.
It wasn't clear which particular portions of the pipeline were targeted for inspection, as PG&# has over 42,000 miles of natural gas distribution pipelines and over 5,700 miles of transmission pipelines.
For sure the inspections will include what is called "high priority" areas, which are pipelines going through high-population areas.
The energy company was also told to retain any record in connection with the explosion and work related to the failed pipeline. Specifically identified was work connected to the Milpitas terminal, which was undertaken in September 2010.
Also under scrutiny will be the process PG&E has in place for inspections, along with how much of the designated budget used for inspections is actually spent.
Morgan Stanley (NYSE:MS) Downgrades PG&E Corp (NYSE:PCG)
Pacific Gas & Electric Co. (NYSE:PCG) unsurprisingly was downgraded by Morgan Stanley (NYSE:MS), which will be the first of many financial institutions to make that move.
Morgan analyst Greg Gordon said, "If Pacific Gas & Electric is exonerated, the financial impact would likely be small. If it is found to be at fault, the impact could be large."
Shares of PG&E Corp. were lowered from "Equal Weight" to "Overweight" by Gordon.
The energy company plummeted 8.35 percent on Friday, ending the session at $44.21, losing $4.03.
Trading volume on Friday exploded from the 3-month average of 2,653,110, to 30,811,787, according to Yahoo Finance.
Morgan analyst Greg Gordon said, "If Pacific Gas & Electric is exonerated, the financial impact would likely be small. If it is found to be at fault, the impact could be large."
Shares of PG&E Corp. were lowered from "Equal Weight" to "Overweight" by Gordon.
The energy company plummeted 8.35 percent on Friday, ending the session at $44.21, losing $4.03.
Trading volume on Friday exploded from the 3-month average of 2,653,110, to 30,811,787, according to Yahoo Finance.
Saturday, September 11, 2010
Uncertainty Now Surrounds PG&E (NYSE:PCG)
Pacific Gas & Electric Co. (NYSE:PCG) finds itself in the unenviable position of waiting for the results of an investigation of the natural gas explosion in San Bruno, which so far as claimed the lives of four people and injured over 50.
The National Transportation Safety Board has began an investigation into the accident.
U.S. Transportation Secretary Ray LaHood said investigators are already on the scene of the devastation.
The California Public Utility Commission has direct jurisdiction over the accident, and will apparently work with the National Transportation Safety Board in the investigation.
Pacific's liability will be determined by the outcome of the investigation, and if negligent in some way, will cost them a lot of money.
The National Transportation Safety Board has began an investigation into the accident.
U.S. Transportation Secretary Ray LaHood said investigators are already on the scene of the devastation.
The California Public Utility Commission has direct jurisdiction over the accident, and will apparently work with the National Transportation Safety Board in the investigation.
Pacific's liability will be determined by the outcome of the investigation, and if negligent in some way, will cost them a lot of money.
San Bruno Gas Explosion Damage Estimated at "Tens of Millions"
Based on estimates made from descriptions in the aftermath of the San Bruno Pacific Gas & Electric Co. (NYSE:PCG) natural gas explosion, it is estimated caused could rise into the "tens of millions," according to Robert Hartwig, the president of the Insurance Information Institute
So far about 38 homes were destroyed, and up to 132 more damaged; seven of them very badly.
The analysis from Hartwig came from descriptions offered by emergency responders.
Insurance adjusters have reportedly been sent to the scene of the explosion to investigate and confirm the extent of the damage.
So far about 38 homes were destroyed, and up to 132 more damaged; seven of them very badly.
The analysis from Hartwig came from descriptions offered by emergency responders.
Insurance adjusters have reportedly been sent to the scene of the explosion to investigate and confirm the extent of the damage.
Costs of Pacific Gas (NYSE:PCG) Explosion Adding Up
The damage and loss of life from the explosion of a Pacific Gas & Electric Co. (NYSE:PCG) natural gas line in San Bruno, California, is growing, with the latest death count at four, and people suffering burns now numbering 52. Those numbers are expected to rise as the area is able to be investigated.
The four deaths were confirmed by the San Mateo County coroner's office. Confirmation of the identities of the victims won't be made until they can be compared with dental records.
So far 38 homes have been completely destroyed, with another seven suffering heavy damage. Several other homes have reportedly suffer minor damage.
Among the 52 injured, they suffered from smoke inhalation, burns, among other injuries. Three of the injured were in critical condition as a result of third-degree burns.
The four deaths were confirmed by the San Mateo County coroner's office. Confirmation of the identities of the victims won't be made until they can be compared with dental records.
So far 38 homes have been completely destroyed, with another seven suffering heavy damage. Several other homes have reportedly suffer minor damage.
Among the 52 injured, they suffered from smoke inhalation, burns, among other injuries. Three of the injured were in critical condition as a result of third-degree burns.
Friday, September 10, 2010
Pacific Gas (NYSE:PCG) Gas Line Explodes in San Bruno
(Getty Images:Justin Sullivan)Pacific Gas and Electric Company (NYSE:PCG) had one of their gas lines explode in a neighborhood of San Bruno, sending one victim to a San Francisco hospital in critical condition, and a number with minor and serious injuries to hospitals around the area.
Preliminary estimates are the explosion destroyed or damaged up to 35 structures, although a final count won't be official until the fire is brought under control and damage assessed.
Some of the homes were destroyed directly from the blast, while others were burned to the ground by flames reportedly as high as 100 feet. As the fire spread it burned everything it came in touch with.
Originally it was thought a plane may have crashed in the area, but that was ruled out by officials. That may have been thought because gas explosions can sound similar to a plane explosion.
San Bruno is located about 8 miles south of San Francisco.
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