California regulatory agency proposes $45 million in penalties against PG&E for Dixie Fire
Pacific Gas and Electric Co. could be forced to pay a $45 million in state fines and penalties for the Dixie Fire, which burned nearly a million acres and destroyed more than 1,300 homes and buildings two years ago in five Northern California counties.
The California Public Utilities Commission on Monday issued a staff proposal that seeks approval from the regulatory agency’s commissioner for a $45 million penalty against PG&E in connection with the 2021 Dixie Fire, the agency announced in a news release.
The proposal would ask for PG&E to pay a $45 million shareholder-funded penalty that includes a $2.5 million fine to the California General Fund, a $2.5 million payment to tribes affected by the Dixie Fire for remediations and $40 million for capital expenditures to transition records to electronic format.
PG&E officials have said they accept Cal Fire’s finding that a tree falling into a PG&E power line caused the fire, but the utility company believes it acted as a prudent operator. PG&E officials said there is no evidence that PG&E consciously and willfully disregarded a known risk with regard to the ignition of the Dixie Fire, and it followed CPUC requirements when inspecting, maintain and operating its system.
“PG&E is committed to making it right and making it safe for our customers and hometowns,” according to a PG&E statement sent to The Sacramento Bee on Tuesday. “We resolved civil claims with Butte, Lassen, Plumas, Shasta and Tehama Counties regarding the 2021 Dixie Fire and entered into long-term agreements with the counties to strengthen wildfire safety and response programs, and to work with local organizations affected by the fire to help rebuild their communities. We have reached settlements with numerous individuals and families. In addition, we are working hard to make our system safer every day.”
The Dixie Fire, which started July 13, 2021, burned 963,309 acres in Butte, Plumas, Lassen, Shasta, and Tehama counties. The wildfire — the largest of 2021 and the second largest in California’s history — destroyed 1,329 structures during a three-month rampage. It devoured much of the tiny Plumas County town of Greenville.
In January 2022, Cal Fire officials said investigators determined that a decaying tree fell and contacted PG&E power lines caused the Dixie Fire. The Cal Fire investigation found that the tree contacted electrical distribution lines owned and operated by PG&E west of Cresta Dam along the Feather River in Plumas County.
The state commission’s proposed penalties will be on its Nov. 16 voting meeting agenda. The commission may adopt, reject or modify the proposal.
The commission has already penalized PG&E for $150 million in connection with the 2020 Zogg Fire, $1 million for the 2019 Easy Fire and $125 million for the 2019 Kincade Fire.
