PG&E’s Attempt to Split Utility to Improve Wildfire Safety

Ever since the Camp Fire broke out across California in November 2018, many people have felt its devastating effects, including those that involve copious amounts of money. Many people have not only experienced the loss of their homes and loved ones, but they have also dealt with the turmoil of personal injury claims and more.

It is likely that Pacific Gas and Electric (PG&E) will be found fully liable for the wildfire that wiped out Paradise, California, and affected many other neighboring towns and cities. PG&E confessed that they experienced an outage on a transmission line in Butte County around 6:15 a.m. on November 8, which was about 15 minutes before the Camp Fire broke out across the entire county. Though the cause of the fire is still being investigated (as it will continue to be for many months), PG&E could be subject to significant liability if their equipment is fully found to be liable. As such, PG&E has taken strides to file for bankruptcy in January and is subtly restructuring its business as a whole while they come to terms with the devastation.

PG&E Trying to Split Utility 

Wildfire claims of large amounts that the company cannot afford on their own have prompted PG&E to start talking about splitting the utility company in two. This is being done in an attempt to increase the overall safety of customers, but it raises the possibility of higher rates. One single entity, they claim, should not have the responsibility of running an entire utility company; instead, two could work to improve the development of safety systems implemented by the companies.

The California Public Utilities Commission (PUC) is widely in charge of many of the decisions that PG&E has been making since the Camp Fire. They claim that they have launched an investigation into the safety culture in December, a month after many lives were claimed in the horrific wildfire. They are also examining whether or not the company should be redirected into two separate entities and what this will do. PG&E has allegedly been exploring the need to do so before they filed for bankruptcy in January. They claim that, in attempting to sell their gas operations, they would be able to pay for many liabilities brought on by the fire.

As of now, it has been determined that liability will exceed $30 billion. PG&E was concerned that it would also be found liable for the October 2017 Tubbs Fire, but they were absolved following an investigation that determined they were not liable. Now, facing the reality that liability for the Camp Fire will likely fall onto them, the company is prepared to take charge, especially when safety is the most important aspect. In fact, they have been under mounting pressure by the courts to increase their overall safety. A judge overseeing the case has threatened to take charge with dramatic restrictions for the company, including a massive equipment-inspection program and major blackouts in windy conditions. Though this proposal has not been met with outstanding support, the reality is that it could happen.

Last week, the company filed with PUC and said that splitting both the gas and electric businesses could be feasible when it comes to technicalities and operations. They say that their gas system and electric system are completely independent and that they could be operated from two different companies if the split were to take place. However, under this restructuring, it is possible that rates could rise for customers who have already been affected by the devastating Camp Fire and cannot afford the raise.

PG&E claims that these rate raises would be one-time and associated with services that are already being shared through the company. Though the company claims that this would help consumers, their filing for bankruptcy has not had this type of impact. It could cause even more pain and sorrow for many people who have been vastly affected by the Camp Fire and will not receive the payout they were hoping for so that they could rebuild after losing homes, loved ones, and suffering serious and, even permanent, injuries.

PG&E claims that, if it restructures as it has planned on, costs could be reduced when two new companies are placed under a single company. Though this is yet to be seen, many people are concerned about where they will turn and whether or not they will be able to afford services and move forward with their claims.

Preventing Wildfires

Safety is the key word when it comes to wildfires in our modern times, as many companies are fully aware that one misstep in safety could lead to extremely devastating results. Here are some tips that individuals can remember to help prevent these deadly fires:

• If a fire is noticed, 911 or a local fire department should be contacted immediately.
• Never leave a fire unattended, and completely extinguish it to prevent it from spreading.
• If a wildfire breaks out, know when to evacuate for your own safety and the safety of your family.
• Know an evacuation route ahead of time and prepare for emergencies with necessary supplies.

Though wildfires have become a part of California life, many of these incidents can be completely prevented. If you have suffered a wide variety of losses at the hands of a utility company or another related entity, it is imperative that you seek help as soon as possible in the midst of your claim. At Brady Law Group, we have helped the victims of California wildfires as they brought personal injury claims and wrongful death suits on behalf of loved ones. Contact us to find out how we can make a difference in your case at (866) 478-6483.