PG&E attorneys say utility can’t hire enough tree trimmers

SAN FRANCISCO -- Pacific Gas & Electric Co. will never fully be able to comply with state wildfire safety laws, the utility's lawyers told the federal judge handling its criminal probation on Wednesday.

PG&E attorney Kevin Orsini argued the company should not be subject to additional probation conditions because satisfying existing vegetation management standards is impossible, given a shortage of tree trimmers, the vastness of its service area and worsening conditions caused by climate change. "The old rules don't work in the new world," he said.

U.S. District Judge William Alsup considered whether to require PG&E to directly employ tree workers and tie executive bonuses to safety. He emphasized PG&E's status as a convicted felon that neglected maintenance "in order to pump more dividends and pay more bonuses."

Alsup did not issue a ruling Wednesday.

The judge told PG&E to explain in a court filing why inspectors failed to fix a worn power line hook that is similar to the issue that caused the 2018 Camp Fire, which killed 85 people and destroyed more than 18,000 buildings. The hook was identified by an expert hired by attorneys representing wildfire victims.

As the judge handling PG&E's five-year criminal probation, after it was discovered the company falsified documentation in connection to the 2010 San Bruno pipeline explosion, Alsup has taken a keen interest in preventing the utility from causing more wildfires. He imposed two new conditions in 2018, requiring PG&E to comply with state vegetation management laws and its own wildfire safety plan.

PG&E acknowledged in a court filing last week it might have violated its probation by failing to meet the two terms.

"We've been clear we can't be" in full compliance with vegetation management requirements because of a shortage of tree trimmers, whose jobs are to prevent vegetation from falling on power lines and starting fires, Orsini maintained.

PG&E increased the number of tree workers from 1,400 to more than 5,400 last year. Alsup proposed the company directly employ trimmers in addition to outsourcing contractors to satisfy its vegetation management backlog, which it has said would take eight years to complete.

"The U.S. attorney's office should be prosecuting you," the judge said. "Your company poses a threat to the safety of Californians."

Having PG&E hire the workers would only complicate the existing process because it would have to "build the infrastructure and administrative backbone" of an entirely new system, according to Orsini. "It's not a resource issue but a timing issue," attributing the backlog of work to "a fundamental lack of resources," he said.

Thomas Hylton, a retired lineman serving as an expert for plaintiffs' attorneys, also testified a worn hook he warned PG&E to replace in 2018 still had not been addressed. There was "significant wear" on the piece of equipment that broke on another tower and sparked the 2018 Camp Fire, he said.

Orsini offered two explanations. Inspectors could have seen the hook and concluded it was a low-priority fix, or they could have "missed the wear entirely," he said.

Alsup said: "I have a feeling you missed it entirely."

Responding to arguments PG&E might have again falsified records to explain why the hook was not replaced, the federal judge told PG&E to explain in writing whether inspectors actually saw the hook and how they concluded it did not immediately need to be replaced.

On the issue of executive bonuses, PG&E attorney Reid Schar argued they are necessary to attract and retain the leadership to address ongoing wildfire safety issues.

The structural incentives for PG&E to return to neglecting maintenance issues in favor of paying bloated executive bonuses and dividends to shareholders is of major concern to Californians, Alsup responded.

"When the danger passes, [Wall Street] will be at the door with their hands out and influencing management to pay more dividends," he said.

On Tuesday, state legislators introduced a bill expanding the powers of state Attorney General Xavier Becerra and local district attorneys to bring legal action against electrical corporations for failing to comply with existing safety standards. Only the California Public Utilities Commission currently has this authority. Under the bill, Becerra and local district attorneys will be able to pursue damages of up to $100,000 per day for each violation against utilities. They will also be able to pursue criminal violations.