PG&E Agrees To Pay $125M In California Fire

PG&E Agrees To Pay $125M In California Fire

Introduction

California's energy regulator and Pacific Gas & Electric have reached a $125 million settlement over the 2019 Kincade Fire that burned more than 77,000 acres destroying hundreds of homes and injuring Sonoma County's four residents. As per the court documents, the fire was ignited by the utility’s equipment in a remote area of Sonoma County in 2019. As per the part of the settlement agreement, the shareholders of PG&E would pay $40 million to the state general fund and $85 million to remove abandoned transmission equipment throughout the utility’s territory. The agreement is yet to be approved by the California Public Utilities Commission, which might get a final nod at the meeting that is scheduled for December 2. The commission’s Safety and Enforcement Division announced the agreement after finding that the maintenance and condition of a high-voltage PG&E transmission tower were faulty. The reports stated that even though the tower was disconnected in 2006, the equipment remained energized. One of the jumper cables that were suspended and unsecured broke on the night of October 23, 2019, during extreme winds resulting in igniting the vegetation. The enforcement division's report claims that PG&E left abandoned equipment energized for thirteen years even though it was of no use.