Ratepayers criticize suspension of $200M fees from $2B PG&E fine

The state utility regulator on Thursday approved a $1.937 billion fine on Pacific Gas & Electric Co. for its role in the devastating 2017 and 2018 Northern California wildfires.

The approval came with modifications of a settlement reached between PG&E, the California Public Utilities Commission's safety and enforcement division and the Coalition of California Utility Employees. PG&E's fine was reduced from $2.137 billion to $1.937 billion.

The Commission also elected not to impose an extra $200 million fine imposed by administrative law judge Sophia Park. Park levied the fine in February after a months-long penalty phase, noting the severity, damages, lives lost, homes destroyed and in hopes to deter future bad behavior.

The decision to permanently suspend the $200 million fine was made out of fear it would jeopardize claims to pay off wildfire victims and to help PG&E successfully exit bankruptcy by June.

"The scope of the devastation caused by PG&E's misconduct demands this record penalty," said Commissioner Clifford Rechtschaffen. "It is one of the many aggressive steps being taken by the CPUC to hold PG&E accountable for failing to keep public safety a top priority," Rechtschaffen said.

Michael J. Aguirre, an attorneys for ratepayers, criticize the CPUC's decision as not "a real punishment for the convicted felon who has been blamed for some of the most devastating wildfires in California history through mismanagement of its facilities." Furthermore PG&E won't be able to recover the money from ratepayers which it legally couldn't do anyway, he said.

According to the settlement, which could be amended, PG&E's penalties now amount to $1.937 billion. $1.823 billion will be in disallowances for wildfire-related expenditures, meaning that PG&E shareholders will pay any money that can't be recovered from ratepayers. $114 million will go to system enhancement initiatives, which includes wildfire prevention and mitigation efforts.

PG&E spokesperson Lynsey Paulo said, "Since PG&E entered Chapter 11, the company's primary goal has been to get victims paid fairly and timely. We remain deeply sorry about the role our equipment had in the tragic wildfires in recent years. PG&E accepts the Commission's decision different and will work to implement the shareholder-funded system enhancements and corrective actions called for in the settlement."