The company, in a public filing, cited at least $7 billion in claims from the Camp Fire.
The San Francisco-based company has begun a search for a new CEO following Williams' departure, according to a statement issued Sunday. "I value the opportunity I've had to lead PG&E and wish all of my colleagues well".
The Camp Fire, the most deadly and destructive fire in state history, has yet to be assigned an official cause, but PG&E reporting having an equipment malfunction near the spot around the same time the fire ignited.
Earlier this month, NPR reported that PG&E has developed a plan, dubbed "Project Falcon", to sell off its natural gas division as a way to fund the billions of dollars in potential claims from the California wildfires. Its debt has been downgraded to junk and state regulators have called for a management shakeup.
"While we are making progress as a company in safety and other areas, the board recognizes the tremendous challenges PG&E continues to face", the company said. A notice does not necessarily mean that PG&E is filing for Chapter 11 protection, but signals that the utility may be considering bankruptcy as a way of coping with an estimated $30 billion in liabilities for fires that took place in 2017 and 2018.
A new state law passed previous year requires the company to give its employees a 15-day notice of such action.
Williams was CEO for less than two years, but she had been with PG&E since 2007. The wildfire caused 86 deaths and destroyed 14,000 homes, along with more than 500 businesses and 4,300 other buildings.
"PG&E faces extensive litigation and significant potential liabilities resulting from these wildfires".
PG&E, which serves 15 million Californians - nearly 40% of the population of the state - warned then it could face "significant liability" beyond its insured amount if its equipment was found to have caused the fire. Shares of PG&E were already down 63% since the start of the Camp Fire.