The California Public Utilities Commission on Thursday proposed a $2.14 billion penalty against PG&E for its role in the catastrophic wildfires in the North Bay and Butte County in 2017 and 2018.
The proposed decision by Administrative Law Judge Sophia Park adds $462 million to a $1.7 billion penalty settlement agreed to last year by PG&E, the commission’s safety staff, and utility union representatives for violations of regulations.
Like the previous settlement, the proposed decision would require shareholders rather than customers to absorb the cost of the penalty. But in addition to increasing the penalty amount, the revised proposal would require that any tax savings PG&E gains from tax deductions for the penalty would benefit customers and not shareholders.
If PG&E agrees to accept the revised penalty within 20 days and no party in the proceeding objects to it, the proposed penalty will become a decision of the five-member commission.
PG&E spokesman James Noonan said, “We’re disappointed” with the proposed decision, saying that “PG&E worked diligently over many months with multiple parties” to reach the previous settlement. He did not say whether
PG&E will agree to the revised penalty.
The proposal includes a $1.8 billion “disallowance” for wildfire expenses, meaning that PG&E can’t recover those costs through higher rates for customers.
It also includes a $200 million fine payable to the state’s general fund and $114 million for corrective actions and initiatives.
The CPUC said the proposed penalty is the largest ever assessed by the agency.
In 2015, the CPUC imposed a then-record $1.6 billion penalty on PG&E for a fatal natural gas pipeline explosion in San Bruno in 2010. PG&E was able to take a tax write-off for most of that amount.
11 comments
Isn’t this an indirect way of taxing us citizens? Whatever they impose on PG&E will be passed through to the customers. Where else would PG&E get the money? And where is this money going? To various government agencies and the general fund.
No. As stated in paragraph 3 it’s going to benefit us the customers. I knew it would be good for us.
Suggestion: why not direct the “fine” to be used for improvements not dumped in the states general fund.
Jimmy
Seriously?
I hope I’m missing the sarcasm.
If not, Jimmy, I’m really sorry.
There go the rates again.
PG&E is a for-profit company.
Any fines and taxes are passed along to the customer or ratepayers.
The people are getting the shaft once again.
The California Public Utilities Commission needs a reorg.
I got three different flyers with my PG&E Bill yesterday. All three were related to different rate hike request they have sent to the CPUC which you know will all get approved.$$$$$$$$$ out of my pocket 🙁
The CPUC wants to fine PG&E for doing what the CPUC was supposed to make sure they weren’t doing. Herein lies the problem with the California government and its inept bureaucratic agencies- zero ability, zero accountability, zero sense of responsibility & zero morality.
Not zero…they get $114 million for not doing their job again after they were fined by the federal government for not doing their job prior to the San Bruno gas explosion.
Oh please! PG&E pays for government auditors and assesors to go behind workers and check probably 75% of jobs.
It’s all done in compliance to Government requirements.
The poster is correct, this is just another Tax on the people. What a SCAM. Money goes to the General Fund, hilarious.
The stockholders should take a hit but that doesn’t mean it will not cost the rate payers. My bill has already gone up a good amount. Don’t think the state should make a profit from all this.
Back in the days, the forest were controlled with fire to prevent forest fires. Because of the liberals that want to save owls and salamanders, the forest is overgrown and no workers to clear the dead trees, etc. If you live in a wooded area, it is always in your best interest to clear any brush or trees next to your house. These fires were devastating and displaced many Californians. I blame their city council for not having a community action plan to clear debris and make fire breaks. Now, we the consumers are paying for their gross neglect and incompetence. It takes a community to incorporate an action plan to make sure their city and homes are safe from fires and enforce ordinances that ensure the safety of their people.
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