Swordsmyth
09-02-2018, 12:18 AM
California's legislature passed a bill late on Friday that could help the utility Pacific Gas and Electric Corporation (PG&E) avoid potentially crippling liabilities for wildfires that ravaged northern parts of the San Francisco Bay Area last year.The bill, passed 29 to 4 in the Senate and 45 to 10 in the Assembly, requires approval by Democrat Governor Jerry Brown.
Some fires in the north of the Bay area were caused by trees toppling into or making contact with PG&E power lines, a report released by state officials in June said. Analysts estimate PG&E, the state's biggest utility, could face several billions of dollars in liability as a result.
Democrat State Senator Bill Dodd said the bill was needed to spare customers from big increases in energy costs. "Without it, ratepayers will be left holding the bag and communities will needlessly suffer," he said.
The fires killed 46 people in blazes across at least 245,000 acres, including subdivisions in the city of Santa Rosa.
In California, utilities are responsible for fires traced to their equipment whether or not they are complying with regulations. PG&E faces about 200 lawsuits on behalf of 2,700 plaintiffs stemming from last year's fires.
If signed by the governor, this would soften that standard by having regulators determine liability based on whether equipment was reasonably maintained and operated. It would also let utilities issue bonds to help pay damages, with a surcharge on ratepayers' bills helping to cover interest payments.
Critics say the legislation is a bailout. But Dodd, who led the legislation, has said another bankruptcy by PG&E could be worse for ratepayers than a surcharge on their bills.
More at: https://www.yahoo.com/news/california-lawmakers-pass-bill-pg-e-wildfire-liability-080056048.html
Some fires in the north of the Bay area were caused by trees toppling into or making contact with PG&E power lines, a report released by state officials in June said. Analysts estimate PG&E, the state's biggest utility, could face several billions of dollars in liability as a result.
Democrat State Senator Bill Dodd said the bill was needed to spare customers from big increases in energy costs. "Without it, ratepayers will be left holding the bag and communities will needlessly suffer," he said.
The fires killed 46 people in blazes across at least 245,000 acres, including subdivisions in the city of Santa Rosa.
In California, utilities are responsible for fires traced to their equipment whether or not they are complying with regulations. PG&E faces about 200 lawsuits on behalf of 2,700 plaintiffs stemming from last year's fires.
If signed by the governor, this would soften that standard by having regulators determine liability based on whether equipment was reasonably maintained and operated. It would also let utilities issue bonds to help pay damages, with a surcharge on ratepayers' bills helping to cover interest payments.
Critics say the legislation is a bailout. But Dodd, who led the legislation, has said another bankruptcy by PG&E could be worse for ratepayers than a surcharge on their bills.
More at: https://www.yahoo.com/news/california-lawmakers-pass-bill-pg-e-wildfire-liability-080056048.html