By Tracy Colman  |  March 4, 2019

Category: Insurance

PG&E files bankruptcy over firesFederal Judge William Alsup presided over a San Francisco-based hearing on Jan. 30, in which he claimed that PG&E fire history in the state of California was riddled with substandard performance of its corporate duties. The judge accused the utility agency–owned by private investors–of participating in the killing of private citizens by wildfire and violating its probation.

PG&E has been in probation related to a 2010 gas pipeline explosion leading to criminal charges. The event led to a conviction in 2016.

Meanwhile, PG&E fire history has been overwhelming in the intervening years, according to a Law360 report. Judge Alsup noted that approximately three percent of the state of California burned in wildfires last year alone.

In October 2017, the private utility was allegedly linked to 17 wildfires in which 22 Americans lost their lives. Reportedly, the numbers keep growing. The judge made it clear that he found it unacceptable to learn that $4.5 billion in dividend revenues were passed on to investors while certain trees interfering with power lines remained standing and untrimmed.

While multiple connections have been made to PG&E, it is believed that the reference was to the Nuns Fire. PG&E fire history includes the Nuns Fire in the heart of Sonoma County wine country.

According to the Wall Street Journal, high winds took down the top half of an alder tree, which hit aged power lines. The power lines landed in a field of grass that was excessively dry due to extended drought. Together with the other 16 blazes that were part of October 2017 PG&E fire history, a total of  193,743 acres burned across eight counties.

PG&E and Fire Costs

As indicated in an early January NBC News article, PG&E fire history has included so many wildfires in 2017 and 2018 that it was considering filing for bankruptcy protection against legal claims that had been registered.

At that time, this action was not certain in that the company was still hopeful that legislation would allow them to pass on wildfire costs to their customers. Other options on the table included selling its gas unit at auction.

On Jan. 29, PG&E filed for Chapter 11 bankruptcy protection. The recent wildfire season alone had resulted in a whopping $30 million in damage liabilities. Appearing before Judge Alsup, counsel for the company claimed there was a shortage of skilled workers to trim vegetation around power lines and that clear cutting was an environmental blight citizens would not entertain.

Judge Alsup responded by indicating disbelief in worker shortage and also by claiming that lobbying the California legislature was something the company was good at doing. The private utility allegedly spends lots of money for their voice in Sacramento, and the judge vocalized they could surely win a case for necessary clear cutting to protect the lives of citizens if the will was there.

The court will reconvene at a later date for sentencing with regard to probation violation. The specific instance of violation in question was the failure to report that the Butte County Sheriff’s Office was investigating PG&E’s involvement in the October 2017 Honey Fire. They also failed to report that this investigation concluded with a settlement on their part.

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