Please ensure Javascript is enabled for purposes of website accessibility
Regulators Boost PG&E's Wildfire Fine to $2.1 Billion
gvw_ap_news
By Associated Press
Published 4 years ago on
February 28, 2020

Share

SAN FRANCISCO — California power regulators on Thursday slapped Pacific Gas & Electric with a $2.1 billion fine for igniting a series of deadly wildfires that landed the beleaguered utility in bankruptcy.

“We recognize our fundamental obligation is to operate our system safely and we share the same objectives as the Commission and other state leaders — namely in reducing the risk of future wildfires in our communities.” — PG&E spokesman James Noonan 
The record penalty imposed in an administrative law judge’s decision boosts a previously agreed upon $1.7 billion settlement announced in December. Several consumer groups had protested the settlement as too lenient in light of PG&E’s destruction, and the California Public Utilities Commission agreed after further review.
PG&E officials said they were disappointed by the increased fine after “working diligently over many months with multiple parties” to reach the previous deal.
“We recognize our fundamental obligation is to operate our system safely and we share the same objectives as the Commission and other state leaders — namely in reducing the risk of future wildfires in our communities,” PG&E spokesman James Noonan said in a statement.
The harsher punishment includes a $200 million payment to California’s general fund.
The San Francisco company has already set up a $13.5 billion fund to help those who lost family members, homes and businesses in catastrophic wildfires caused by PG&E’s outdated electrical grid and negligence during 2017 and 2018. The fires killed nearly 130 people and destroyed almost 28,000 homes and other buildings.
Photo of PG&E crew work on restoring power lines in Santa Rosa, Calif.
FILE – In this Oct. 14, 2017, file photo, Pacific Gas & Electric crews work on restoring power lines in a fire ravaged neighborhood in an aerial view in the aftermath of a wildfire in Santa Rosa, Calif. California power regulators slapped Pacific Gas and Electric with a $2.1 billion fine for igniting a series of deadly wildfires that landed the beleaguered utility in bankruptcy. The record penalty imposed Thursday, Feb. 27, 2020, in a an administrative law judge’s decision boosts the punishment that had been agreed upon in a $1.7 billion settlement announced in December. The increased punishment includes a $200 million payment earmarked for the people who lost family and property in catastrophic wildfires caused by PG&E’s outdated electrical grid and negligence during 2017 and 2018. (AP Photo/Marcio Jose Sanchez, File)

The Company Still Faces Some Potentially Imposing Hurdles

More than 81,000 claims have been filed in the bankruptcy case.
The decision will also prevent PG&E from attempting to recover $1.82 billion from its customers, forcing its shareholders to bear the cost instead. The settlement previously had prevented PG&E from recovering $1.63 billion.
As part of the previous settlement, PG&E had projected it would realize $469 million in tax savings. Thursday’s ruling could require the San Francisco company to funnel any tax savings to hold down the prices charged to the 16 million people who rely on the nation’s largest utility for electricity.
Thursday’s rebuke is the latest blow to PG&E, which has been trying to climb out of a huge financial hole left by its liabilities from the fires. The company filed for bankruptcy 13 months ago to seek shelter from more than $50 billion in claimed losses. It is seeking to emerge from bankruptcy by June 30 to qualify for a state wildfire insurance fund.
PG&E has settled those claims by reaching settlements totaling $25.5 billion with the wildfire victims, insurers and some government agencies.
But the company still faces some potentially imposing hurdles, with California Gov. Gavin Newsom threatening a government-led takeover bid if the utility doesn’t make significant reforms. PG&E needs state approval of the plan to qualify for the wildfire insurance fund.

DON'T MISS

Caitlin Clark and Iowa Draw Nearly 5 Million Viewers for Second-Round NCAA Win

DON'T MISS

Canadian School Boards Sue Snapchat, TikTok and Meta for Disrupting Students’ Education

DON'T MISS

California Law Enforcement Agencies Obstruct Transparency Efforts in Use-of-Force Cases

DON'T MISS

No Police Charges for Taylor Swift’s Dad Over Paparazzi Incident in Sydney

DON'T MISS

Biden Administration to Lend $1.5B to Restart Michigan Nuclear Power Plant, a First in the US

DON'T MISS

Tonight’s Biden Fundraiser With Obama and Clinton Already Nets a Record $25 Million

DON'T MISS

Former Sen. Joe Lieberman, Democrats’ VP Pick in 2000, Dead at 82

DON'T MISS

Trump Criticizes Judge and His Daughter After Gag Order in Hush-Money Case

DON'T MISS

CA Insurance Market ‘in Chaos,’ Says Former Insurance Commissioner. Can Lara Fix It?

DON'T MISS

Police Had About 90 Seconds to Stop Traffic Before Baltimore Bridge Fell. 6 Workers Are Feared Dead

No data was found

Stock Market Today: Wall Street Rises to More Records to Close Out Its Latest Winning Month

2 hours ago

A Fresno County First: Kerman Council Passes Amended Gaza Cease-Fire Resolution

2 hours ago

UN Top Court Orders Israel to Open More Land Crossings for Aid into Gaza

2 hours ago

How Involved Is Southern California Consulting Firm in FUSD Executive Dealings?

2 hours ago

Biden’s Fundraiser with Obama and Clinton Nets a Record $25 Million, His Campaign Says

3 hours ago

Fresno Unified’s Self-Protection Racket Is Hurting Our Kids

3 hours ago

Rockin’ Out or Laughing, the Valley Has Its Pick of Weekend Events

4 hours ago

Ex-Correctional Officer at Women’s Prison in California Sentenced for Sexually Abusing Inmates

6 hours ago

Caitlin Clark and Iowa Draw Nearly 5 Million Viewers for Second-Round NCAA Win

6 hours ago

Canadian School Boards Sue Snapchat, TikTok and Meta for Disrupting Students’ Education

7 hours ago

Cronenworth’s Big Hit Helps Lift the Padres to a 6-4 Win Over Melvin’s Giants

SAN DIEGO — Jake Cronenworth’s two-run double highlighted a four-run seventh inning for the San Diego Padres, who beat the San Francis...

1 hour ago

1 hour ago

Cronenworth’s Big Hit Helps Lift the Padres to a 6-4 Win Over Melvin’s Giants

1 hour ago

Shohei Ohtani Reaches 3 Times in Home Debut as the Dodgers Rout the Cardinals 7-1

1 hour ago

Facebook News Tab Will Soon Be Unavailable as Meta Scales Back News and Political Content

2 hours ago

Stock Market Today: Wall Street Rises to More Records to Close Out Its Latest Winning Month

2 hours ago

A Fresno County First: Kerman Council Passes Amended Gaza Cease-Fire Resolution

2 hours ago

UN Top Court Orders Israel to Open More Land Crossings for Aid into Gaza

2 hours ago

How Involved Is Southern California Consulting Firm in FUSD Executive Dealings?

3 hours ago

Biden’s Fundraiser with Obama and Clinton Nets a Record $25 Million, His Campaign Says

MENU

CONNECT WITH US

Search

Send this to a friend