California PUC Slaps PG&E with Record High Penalty over Wildfires

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(Photo: A US Army helicopter drops water on the Camp Fire in Butte County, California on November 16, 2018. Credit: Crystal Housman / US Air National Guard, Flickr Creative Commons)

The California Public Utilities Commission assessed its largest ever penalty, telling PG&E to pay $1.937 billion over the utility’s role in 2017 and 2018 wildfires.

Last summer CPUC opened a formal investigation into PG&E’s maintenance, operations, and practices of the electric facilities involved in igniting Northern California wildfires in October 2017 and November 2018, including the Camp Fire.

In March, PG&E agreed to plead guilty to 84 counts of involuntary manslaughter for its role in causing the Camp Fire and pay approximately $4 million in fines.

CPUC explained that the penalty imposed on Thursday consists of $1.823 billion in disallowances for wildfire-related expenditures — $198 million more than the original settlement agreement — as well as $114 million in system enhancement initiatives and corrective actions. The vote was unanimous, according to the Bay Area News Group.

Regulators said that corrective actions include:

  • Root cause analysis for wildfires where ignition involved PG&E facilities, and the implementation of recommended actions to prevent similar events.
  • Funding local Fire Safe Councils that focus on community-based wildfire prevention and mitigation efforts.
  • Funding to the California Foundation for Independent Living Centers to support the safety and welfare of vulnerable customers before, during, and after disasters and public safety power shutoff events.

Hardening the System

“As we work to harden the system and mitigate public safety power shutoffs, I was pleased to see the inclusion of a request for information in the settlement intended to identify non-diesel generators capable of meeting a range of use cases, including planned outages and temporary microgrids,” said CPUC Commissioner Genevieve Shiroma.

For that shareholder-funded system enhancement initiative, PG&E said it will work to identify non-diesel generators that could meet use cases including planned outages, unplanned outages, and temporary microgrids for public safety power shutoff events. If the request for information identifies a solution that’s ready for deployment, the utility said it will commit commercialization funds of up to $10 million to acquire the product or products.

But the utility still has a way to go in hardening its system. Greentech Media reported that, as of March 31, the PG&E had only completed 32% of its planned tree trimming and removal, and had installed just 16% of the grid-sectionalizing devices needed to localize and minimize power outages.

Michael Wara, head of Stanford University’s Climate and Energy Policy Program and a member of the governor’s Wildfires Blue Ribbon Commission, told the news outlet that an extraordinarily mild winter is increasing fire risks.

“Last fire season was a pretty light fire season, and it had a very late start,” he said. “We’re now headed into a fire season that’s likely to be much more severe, and with an earlier start.”

On Thursday, PG&E urged customers in high fire threat areas to make sure the utility has their contact information so that they can reach out ahead of a public safety power shutoff.

Environment + Energy Leader