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News

Administrative/Regulatory,
Criminal

Jun. 3, 2019

PG&E ordered to shut off power lines during dangerous conditions

State regulators approved the Pacific Gas and Electric Co.’s controversial proposal to shut off power lines during dangerous weather conditions after the federal judge handling its probation condemned the utility for not adopting the practice earlier.

State regulators approved the Pacific Gas and Electric Co.'s controversial proposal to shut off power lines during dangerous weather conditions after the federal judge handling its probation condemned the utility for not adopting the practice earlier.

The California Public Utilities Commission unanimously voted in favor of PG&E's state-mandated plan for allowing power shutoffs over concerns from those with disabilities about how the practice, which could mean multi-day blackouts in major Northern California cities, would affect them.

"Given the changes we're seeing in weather and changes that we're seeing in fire fuels, nobody who lives in a wildfire hazard zones should count on a warning or should count on having reliable electricity," said commission president Michael Picker on Thursday.

Picker announced his plan to step down later this year, saying he could depart as early as July, but it will most likely be later to give Gov. Gavin Newsom time to fill his seat.

The commission also approved the utility's first state-mandated wildfire mitigation plan.

U.S. District Judge William Alsup of San Francisco made compliance with the proposal mandatory as part of the utility's probation from the 2010 San Bruno pipeline explosion. USA v. PG&E, 14-CR00175 (N.D. Cal., filed April 1, 2014).

The plan primarily addresses PG&E's crumbling infrastructure by vastly boosting the utility's vegetation trimming efforts. The California Department of Forestry and Fire Protection has found vegetation contact with downed power lines sparked several wildfires during the last two years.

"The approval of our 2019 Wildfire Safety Plan marks the progression of enhanced and additional safety precautions PG&E has implemented to address the growing threat of extreme weather and wildfires across its service area," PG&E spokesperson Ari Vanrenen said in an emailed statement.

In an expected decision last Tuesday, U.S. Bankruptcy Judge Dennis Montali rejected the appointment of a ratepayers' committee for PG&E's chapter 11 proceedings. In re: PG&E Corp., 19-30088 (N.D. Cal., filed Jan. 31, 2019). The Utility Reform Network asked the judge for a separate committee to represent millions of PG&E consumers who could see their rates rise to spread the cost of wildfires over the past two years.

But Montali said he does not have the authority to do so because "ratepayers are not creditors."

The consumer group argued ratepayers could be considered creditors because they receive credit deducted from their bills from the fees utilities pay for greenhouse gas emissions under the state's cap-and-trade program.

Montali did not agree as the credits are automatically deducted, adding the committee was unnecessary because the commission has to approve rate increases.

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Winston Cho

Daily Journal Staff Writer
winston_cho@dailyjournal.com

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