SAN FRANCISCO (CN) — In a settlement agreement with the California Public Utilities Commission, utility giant Pacific Gas & Electric will pay a $45 million penalty for its role in the 2021 Dixie Fire.
The fire burned through almost 1 million acres across five counties — Butte, Lassen, Plumas, Shasta and Tehama — destroying over 1,300 structures and injuring four people. Started in July 2021, it was finally 100% contained that October.
Cal Fire determined the fire’s cause was a 65-foot damaged and decayed tree falling onto electrical lines owned and operated by PG&E. The contact with an energized line led to the ignition of a dry fuel bed.
The weather that day didn’t meet PG&E’s requirements for a public safety power shutoff, which would have de-energized lines in certain areas.
The $45 million settlement agreement came after the commission’s Safety and Enforcement Division performed an investigation into possible violations of the public utilities code or any other regulations.
“As we have stated previously, we accept Cal Fire’s finding that a tree falling into our power line caused the fire,” PG&E said in a statement. “However, PG&E believes we acted as a prudent operator. There is no evidence that PG&E consciously and willfully disregarded a known risk with regard to the ignition of the Dixie Fire.”
The commission declined further comment, pointing to a formal press release as its statement.
"It shouldn’t take another ruling from the CPUC to make PG&E do the right thing," said state Senator Brian Dahle, whose district was impacted by the Dixie Fire. "Unfortunately, today’s ruling isn’t going to fix the problem. They need to upgrade and maintain their lines. Many of their customers reside in my district and are paying some of the highest utility rates in the nation for unreliable and unsafe service. I'm hopeful the Legislature will also approve my bill exempting settlements from taxable income for individuals. This is a real travesty for victims."
The $45 million penalty will go into three different pots.
The first will hold $40 million in shareholder funding for capital expenses linked to changing from hard copy records to electronic records for patrols and inspections.
The second will send $2.5 million to the state’s general fund.
The third, the remaining $2.5 million, will be paid to tribes affected by the Dixie Fire. They include the Greenville Rancheria and Maidu Summitt Consortium, the latter of which represents certain Maidu groups, nonprofits and organizations.
Additionally, the settlement calls for PG&E to provide an implementation plan to the Safety and Enforcement Division. That plan — which can be altered by the commission — will contain PG&E’s new record-keeping initiative. PG&E also will give yearly reports about that initiative’s progress.
The commission said this will lead to better recording of information and knowledge of the condition of PGE’s assets, heightening inspection and maintenance.
The investigation into the Dixie Fire revealed a number of violations on PG&E’s part. Two involved vegetation management practices and vegetation patrols that could have identified and led to the removal of the tree.
Safety and enforcement officials found PG&E in violation for failing to identify the tree as hazardous. While PG&E records extending back to 2016 don’t mention the tree, the utility notes that a Cal Fire arborist had found the tree had a green canopy, was alive and growing vertically when it fell. However, the utilities commission found at least one of its eight roots had internal rot.
“PG&E is committed to making it right and making it safe for our customers and hometowns,” the utility said. “We resolved civil claims with Butte, Lassen, Plumas, Shasta and Tehama counties regarding the 2021 Dixie Fire and entered into long-term agreements with the counties to strengthen wildfire safety and response programs, and to work with local organizations affected by the fire to help rebuild their communities.”
The commission notes that it’s issued several fines and orders at PG&E over the past several years.
PG&E received a $150 million fine for the 2020 Zogg Fire, $125 million fine for the 2019 Kincade Fire, $1 million fine for the 2019 Easy Fire and a $132,500 staff citation related to the 2021 Brewer Fire.
It’s also ordered PG&E to enhance the public safety power shutoff process and make an app for people to report electric infrastructure concerns.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
Additional Reads
-
-
Newsom’s ‘May revise’ trims budget to $288 billion May 10, 2024
