Today, the shares in PG&E plunged by more than a fifth as the concerns over its future affected markets in the United States of America.
In early trading in New York, the firm dropped 20.9 percent to $19.36. It comes as reports revealed that it could be on the verge of bankruptcy.
The stock of the utility dropped by as much as 26 percent while the prices on its 6.05 percent notes that were due in 2034 plunged by 2.8 percent. The bonds are now considered to be the most active in the investment-grade market.
Last Friday, Reuters reported that the utility supplier is reportedly considering some plans to file for bankruptcy protection as soon as February to protect itself over billions of dollars as it suffers massive charges from possible wildfire liabilities.
Some analysts estimate that the possible liabilities from wildfires which ripped through California in 2017 and 2018 could cost the firm between $24 billion (£19bn) and $30 billion.
However, some sources said that the bankruptcy filing, which is known as Chapter 11, is still far from certain as the firm could get help through laws which enable it to pass on the costs to customers.
An analyst at JP Morgan, Christopher Turnure, stated: “Without adequate political and regulatory support, we cannot rule out a Chapter 11 filing.”
However, Shahriar Pourreza, an analyst at Guggenheim Partners, said that PG&E is considered to be too big in California to be allowed to go into bankruptcy.
Pourreza stated: “Legislation is the way forward as it will allow to keep the utility alive and mitigate any negative impact one can get from the bankruptcy.”
Reuters reportedly contacted PG&E to request some comments regarding the matter, however, it did not respond. It said that does not speak about “market rumor or speculation.”
Some other insurance firms have faced massive bills due to the wildfires.