Nearly all the wildfire recovery and prevention work included in the agreement should be deductible from both its state and federal taxes, PG&E said in a regulatory filing late Friday.
“Because we will not bill customers for the work, PG&E will incur losses,” PG&E spokeswoman Jennifer Robison said in an emailed statement. “The tax treatment of such losses will be determined in accordance with the federal and state tax code.”
The settlement also directs PG&E to spend an additional $50 million on system enhancements and community outreach. It’s unclear whether federal officials will allow the company to deduct that expense from its taxes, PG&E said.
The filing also details how much responding to those wildfires has cost San Francisco-based PG&E, which filed for Chapter 11 in January 2019 facing an estimated $30 billion in liabilities. The company, for example, lists $719.4 million in expenses related to the November 2018 Camp Fire, which killed 85 people and leveled the town of Paradise.
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