PG&E Bankruptcy Hits LGBT Nonprofits

Even before Pacific Gas & Electric Co. filed for bankruptcy protection Tuesday, the utility had announced that its charitable giving program is currently on hold, leaving some LGBT nonprofits scrambling to cover the loss.

PG&E made the filing under Chapter 11 of the U.S. bankruptcy code because of the billions of dollars in damages the utility is facing due to the northern California wildfires.

"Our most important responsibility is, and must be, safety, and that remains our focus," John R. Simon, PG&E Corporation interim CEO, said in a January 29 news release. "Throughout this process, we are fully committed to enhancing our wildfire safety efforts, as well as helping restoration and rebuilding efforts across the communities impacted by the devastating northern California wildfires."

Reaction from state officials was swift.

"Today's bankruptcy filing by Pacific Gas and Electric is disappointing," lesbian state Senate President pro Tem Toni Atkins (D-San Diego) said in a statement. "Bankruptcy is not the optimum solution for Californians, the company itself, and the workers who rely on their salaries to provide for their families.

"I am committed to working with my colleagues in the Senate and all stakeholders to ensure the continued and uninterrupted provision of safe, reliable electricity for our residents and businesses," Atkins added.

Governor Gavin Newsom issued a statement saying his administration would continue working to protect the "best interests of the people of California."

The company is facing at least $30 billion in liabilities related to northern California wildfires in 2017 and 2018. After Cal Fire issued a report last week concluding that PG&E equipment did not cause the 2017 Tubbs Fire in Santa Rosa, the state's second deadliest blaze, PG&E's liability could now be $8 billion lower, according to a financial research firm CredSights, reported the New York Times.

The company is also being investigated for last year's deadly Camp Fire in Butte County, and other blazes.

As the company explored bankruptcy protection, which it announced earlier this month, it became clear that its long history of charitable giving would be affected.

Over the years, PG&E has been a significant contributor to local and national LGBT nonprofits. No timeline has been given for the status of the 2019 grants from California's largest energy provider.

"Given the current financial circumstances, the utility's community giving programs must be re-evaluated and are currently on hold. In the event of a Chapter 11 filing, PG&E's charitable program will become subject to review in conjunction with that proceeding," PG&E spokesman Matt Nauman wrote in an email response to the Bay Area Reporter before the company's announcement. He declined to schedule an interview.

Since 2000, PG&E and the PG&E Corporation Foundation, a separate business entity, have together donated more than $100 million to various nonprofits, according to the company. On the foundation's website, it says $28 million was given in charitable investments to local communities last year.