(Reuters) – Shares of embattled utility PG&E Corp (N:) jumped 40 percent on Friday as fears it could be bankrupted by the fallout of California’s deadly wildfires were eased by signs of support from one regulator for the company.
Bloomberg on Thursday reported the head of the California Public Utilities Commission (CPUC) as saying he could not imagine allowing the state’s largest utility to go into bankruptcy.
CPUC also issued a statement emphasizing that state law requires it to consider a utility’s financial health when weighing a request to cover costs associated with wildfires.
Citigroup (NYSE:) upgraded the stock to “buy” on Friday and said it was easier for the CPUC to step up now because it is easier for the regulator to support the utility as opposed to “something from the political spectrum.”
PG&E shares – rocked all week by signs its financial exposure to the fires may prove overwhelming – shot higher on optimism the company might escape intact.
The shares were up about 41 percent at $25.02 in early trading. They have fallen more than 60 percent since the wildfires started a week ago.
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Source: Investing.com
