Market News

Zogg Wildfire Continues to Burn PG&E (NYSE:PCG) as a $155 Million Fine Looms

Story Highlights

PG&E continues to face the fire as the CPUC proposes to impose a hefty fine and other corrective actions on the company.

Pacific Gas & Electric Corporation, better known as PG&E (NYSE:PCG), has recently come under fire for negligence related to the fatal Zogg wildfire of 2020. The natural gas and electricity provider has been asked by California’s Public Utilities Commission (CPIC) to cough up a $155.4 million fine along with other corrective measures for safety violations at the time of the wildfire that torched 200 homes and claimed four lives.

PG&E faces a criminal charge of sparking the fire in northern California when a falling pine tree in Shasta County hit and snagged one of the company’s utility power lines. Incidentally, this incident happened after PG&E failed to clear two pine trees ordered by the CPUC for removal for safety purposes.

The company is said to be reviewing the order proposal and is likely to request a hearing. PG&E said in a statement that its commitment to improving safety for the community is aligned with CPUC’s safety goals and that any penalty should be “directed for the benefit of our customers, and to keeping our hometowns safe.”

Is PG&E a Good Stock to Buy?

Wall Street analysts are bullish on PG&E stock, with a Strong Buy rating based on six Buys and two Holds. The consensus also expects the PCG stock price to increase 10.3% to $16.69 over the next 12 months.

Moreover, PCG stock investors are also positive about the chances of stock appreciation, according to the TipRanks database. Portfolios on TipRanks that hold PG&E stock have increased 1.2% in the past week, despite all the ongoing regulatory issues and criminal charges.

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