SoCal Edison to pay $550M, PG&E $125M for files in deal with regulators

Two utilities that provide power to most of the state have agreed to incur a total of $675 million in fines and absorbed costs to end disputes with regulators over some of California’s largest wildfires in history over the last four years.

On Tuesday, the California Public Utilities Commission announced that Southern California Edison Co. agreed to pay $550 million in penalties to the commission in connection with wildfires in 2017 and 2018, the Thomas Fire, the subsequent Montecito mudslide and the Woolsey Fire, and three smaller fires. Under the deal, Edison will agree not to seek recovery from customers for $375 million of third-party uninsured claims payments.

“SCE did not admit imprudence, negligence or liability in reaching the agreement. We believe the agreement is fair and reasonable and look forward to the CPUC’s review and approval,” an Edison statement said.

Altogether, the five fires burned nearly 400,000 acres, destroyed almost 3,000 structures and caused five deaths. The utility commission’s safety enforcement officers said they found multiple violations of a rule that establishes safety factors and strength requirements in design, construction and maintenance of equipment.

The commission also announced that Pacific Gas & Electric Co. agreed to pay $40 million in fines and absorb $85 million in cleanup costs for the Kincade Fire that burned about 77,000 acres in Sonoma County in 2019. The California Department of Forestry and Fire Protection announced it traced the ignition to transmission lines northeast of Geyserville within PG&E territory.

PG&E spokesman James Noonan said Wednesday that while the company disagrees with the state’s claims of violations, the settlement will help allow parties to move forward, and allow PG&E to focus on compensating victims.

The Sonoma County District Attorney recently filed five felony and 28 misdemeanor charges against PG&E for the Kincade Fire.

Under the proposed deal, PG&E’s shareholders will pay $40 million in penalties to the state’s general fund. PG&E agreed to forgo recovery of $85 million from ratepayers for costs relating to removal of abandoned transmission facilities within its service area.

“We will continue to work to make it safe and make it right, both by resolving claims stemming from past fires and through our work to make our system safer tomorrow than it is today. As we’ve said previously, we accept Cal Fire’s finding that a PG&E’s transmission line caused the Kincade Fire,” said Noonan.