US judge may prohibit PG&E bonuses until utility meets wildfire goals

The Pacific Gas and Electric Co. may be prohibited from paying bonuses to executives unless the utility meets its wildfire safety goals, a San Francisco federal judge indicated on Friday.

U.S. District Judge William Alsup ordered PG&E to show why he should not "restrict all bonuses and other incentives for supervisors" to reaching its wildfire mitigation commitments, according to court filings.

The order comes after PG&E admitted it fell short of seven of its 53 safety targets, including its tree-trimming efforts, the quality of its power line inspection and its preparedness in re-energizing power lines after planned shutoffs. Alsup responded he may force the utility to directly employ tree trimmers rather than rely on contractors.

Alsup oversees PG&E's criminal probation stemming from the 2010 San Bruno pipeline explosion that killed eight people. Has has taken a keen interest in exercising his powers to get the utility to fulfill its state-mandated wildfire prevention plan.

U.S. Bankruptcy Judge Dennis Montali allowed PG&E to pay roughly $235 million in bonuses to rank-and-file employees in April but later rejected its request to pay up to $16 million in bonuses to 12 senior executives.

Alsup quoted Montali, saying "there is simply no justification for diverting additional estate funds to incentivize them to do what they should already be doing," in his order.

Alsup will consider the issue at a Feb. 19 hearing.

-- Winston Cho