PG&E fire responsibility for last season’s California wildfires prompted a federal judge to set new rules for the utility company.

U.S. District Judge William Alsup said at a court hearing on April 2 that Pacific Gas and Electric (PG&E) cannot reissue dividends that it allegedly gained as a result of taking money from funds the company was supposed to use for tending to vegetation issues.

PG&E originally fought that stipulation because it said dividends in 2017 already were suspended. At this point, Judge Alsup will have to grant permission before any further dividends are paid out.

The Associated Press quoted Judge Alsup in an address to PG&E’s acting chief executive John Simon.

“A lot of money went out in dividends that should have went into tree trimming. PG&E is accused of improper maintenance since they allegedly pumped out $4.5 billion in dividends and let the tree budget whither. So a lot of trees should’ve been taken down that were not,” Judge Alsup said.

The judge also ordered a federal monitor to oversee PG&E’s implementation of a new wildfire mitigation plan that includes tree trimming and other vegetation control.

Allegations of PG&E Fire Responsibility

PG&E, which filed for bankruptcy in January, said in a February statement that it was “probable” the company was responsible for the Camp Fire, a California wildfire that resulted in the deaths of 86 people and the destruction of 19,000 homes, businesses and other buildings across 150,000 acres.

PG&E admitted in a disclosure to the state of California that its own company inspectors discovered a broken hook on a high-voltage electric transmission tower near the remote village of Pulga, which is in the area where the Camp Fire originated. Pulga is just northeast of Paradise, the town that was wiped out by the Camp Fire.

Lawsuits already have been filed by survivors of the Camp Fire who allege if the broken hook would have enabled a live wire to make contact with the tower, the resulting sparks would have ignited the Camp Fire, which quickly grew out of control in the dry, remote area.

PG&E’s filing of Chapter 11 bankruptcy came after it saw it could face lawsuits and liability issues totaling at least $30 billion.

The state of California says utility companies can be held liable for damages from any wildfire that is initiated by the company, even if the company is not found negligent for the actions that led to the fire’s origin.

Still, Yuba County District Attorney Pat McGrath decided not to file charges against PG&E last year even though Cal Fire investigators determined PG&E fire responsibility due to low “sagging power lines” that allegedly caused the Cascade Fire that resulted in four deaths. McGrath allegedly said he felt a criminal conviction would be unlikely.

PG&E has been on probation since a natural gas pipeline exploded in San Bruno in 2010, resulting in eight deaths and dozens injured. In 2017, the company was convicted of six felony charges and sentenced to pay a $3 million fine and serve five years of probation. The company also had to commit to 10,000 hours of community service and pay a $1.6 billion total in fines to state regulators.

This article is not legal advice. It is presented
for informational purposes only.