Pg&E's Legal Troubles: Breaking The Law?

The Pacific Gas and Electric Company (PG&E) has been involved in several controversies and legal proceedings throughout its history. One of the most notable incidents was the 2018 Camp Fire, the deadliest wildfire in California's history, which was caused by PG&E's power lines and resulted in the company pleading guilty to 84 counts of involuntary manslaughter. PG&E has also been implicated in other wildfires, gas explosions, and instances of groundwater contamination, leading to numerous lawsuits and settlements. The company has faced accusations of criminal negligence, obstruction of justice, and prioritizing profits over safety. PG&E's response to these incidents has been criticized, and the company has been accused of failing to take responsibility and make necessary changes to prevent future disasters.

PG&E's criminal negligence

Pacific Gas and Electric Company (PG&E) has been convicted of criminal negligence on multiple occasions. The company has a long history of problems with contamination, fires, and explosions.

In, PG&E was found guilty of 739 counts of criminal negligence for failing to trim trees near its power lines, which caused the Trauner Fire in Nevada County, California. The fire destroyed a schoolhouse and twelve homes near the town of Rough and Ready. PG&E was convicted of a further hundreds of counts of negligence for the same reason, though the exact number is unclear.

PG&E was also found to be criminally negligent in a 1996 fire at one of its substations in the Mission District of San Francisco.

In 2010, PG&E was convicted of five felony counts of pipeline safety violations and one felony count of obstruction of justice for lying to officials, in relation to the 2010 San Bruno Gas Explosion, which resulted in eight deaths and left twelve others injured.

In 2018, PG&E pleaded guilty to eighty-four counts of involuntary manslaughter for the deaths caused by the 2018 Camp Fire, the deadliest wildfire in California's history. The company was also found to have violated probation from the 2010 San Bruno Gas Explosion case.

In addition to these incidents, PG&E has been implicated in numerous other fires and explosions, and has faced problems with contamination.

PG&E's bankruptcy

PG&E, the Pacific Gas and Electric Company, is an American investor-owned utility company that provides natural gas and electricity to 5.2 million households in the northern two-thirds of California.

PG&E has a long history of problems with contamination, fires and explosions. In 2018 and 2019, the company was deemed responsible for causing two separate devastating wildfires in California, including the 2018 Camp Fire, the deadliest wildfire in California's history. The company was also found criminally liable for the 2010 San Bruno gas explosion, which killed eight people and injured nearly five dozen more.

In January 2019, PG&E filed for Chapter 11 bankruptcy in response to its liability for the 2017 and 2018 wildfires in Northern California. The company faced at least $30 billion in potential damages from lawsuits over the wildfires, which killed hundreds of people and destroyed thousands of homes.

This was not the first time PG&E had filed for bankruptcy. In 2001, the company filed for Chapter 11 bankruptcy, citing rising energy costs and $9 billion in debt.

PG&E emerged from bankruptcy in June 2020, after reaching a settlement with wildfire victims and receiving final approval from a U.S. Bankruptcy Judge. As part of its bankruptcy reorganization plan, PG&E agreed to pay $13.5 billion to wildfire victims, with half of that amount paid in company stock. The company also pleaded guilty to 84 counts of involuntary manslaughter for the Camp Fire deaths and paid a $3.5 million fine.

PG&E has since faced additional lawsuits and scrutiny over its role in other wildfires, including the Kincade Fire in 2019 and the Zogg Fire in 2020. The company has also been criticized for its handling of power shutoffs during high fire risk periods and its failure to adequately maintain its infrastructure.

Despite these challenges, PG&E remains one of the largest utility companies in California, serving millions of customers across the state.

PG&E's political influence

PG&E engages at the federal, state, and local levels of government to ensure the interests of its customers, shareholders, and employees are adequately represented before lawmakers and regulators. The company believes it is important to participate in the political process, including contributing to political campaigns and engaging in substantive discussions with officials whose decisions impact its business. These political engagement activities support PG&E's core business of providing safe, reliable, and affordable gas and electric services to millions.

The Boards of Directors of PG&E Corporation and Pacific Gas and Electric Company oversee PG&E's political engagement policies, programs, and practices. The Sustainability and Governance Committee of the PG&E Corporation Board of Directors advises and assists the Boards with respect to public policy and corporate responsibility issues that significantly affect the interests of the company's customers, shareholders, or employees.

PG&E's political contributions policy and procedures are publicly available, and the company is committed to full compliance with federal, state, local, and foreign political laws and to maintaining the highest ethical standards in the conduct of its business. Outside legal experts periodically review PG&E's political activity, and the company's political policies, practices, and contributions program are regularly reviewed internally.

PG&E engages in the political process by providing financial support to selected state ballot initiatives and issue advocacy campaigns that directly impact its ability to serve consumers. The company's involvement in these campaigns is overseen by its Public Policy Team, a multi-functional team composed of representatives from Global Government Relations and Public Policy, Legal, Human Resources, Corporate Communications, and other functions related to the specific issue under consideration. As with all other aspects of its political involvement, PG&E's participation in such efforts is guided by its Purpose, Values, and Principles, and business strategies, and is fully reported in accordance with governing laws.

PG&E complies with all U.S. federal and state laws, including the Lobbying Disclosure Act and the Honest Leadership and Open Government Act, which require reporting on lobbying activities and certification of compliance with Congressional gift rules. For the 2023 calendar year, PG&E reported U.S. lobbying expenditures of $2.9 million in the lobbying disclosure reports filed with the Clerk of the U.S. House of Representatives and the Secretary of the U.S. Senate, and a total of $1.25 million in lobbying expenditures in U.S. states. In fiscal year 2022-2023, PG&E reported lobbying activity in the range of 900,000 - 999,999 € at the European Union level under voluntary guidelines issued by the EU Commission and the European Parliament.

PG&E's safety certificates

Under AB 1054, a 2019 law that bailed PG&E out of bankruptcy, utilities with a safety certification can access a $21 billion wildfire fund, paid for by utility customers, to compensate fire victims. This certification also limits the amount that can be taken from shareholders' profits to cover wildfire damage.

To obtain a safety certificate, utilities must meet several requirements, including having a wildfire mitigation plan approved by the Office of Energy Infrastructure Safety, being in "good standing", and demonstrating the implementation of their wildfire mitigation plan.

PG&E has been granted a safety certificate every year since 2019. However, critics argue that the company's track record of safety violations and involvement in deadly incidents makes it unfit to receive such certification. They contend that the safety certificates provide PG&E with a license to continue operating without sufficiently addressing the issues that have led to devastating consequences in the past.

PG&E's history includes numerous incidents of criminal negligence, safety violations, and wildfires. The company has been convicted of hundreds of counts of criminal negligence, pipeline safety violations, and obstruction of justice. It has been linked to fatal incidents such as the San Bruno gas explosion in 2010, the Camp Fire in 2018, and the Rancho Cordova gas explosion in 2008, among others. Despite this, PG&E continues to receive safety certification, raising concerns about the effectiveness of these certificates in holding the company accountable and prioritizing public safety.

PG&E's history of wildfires

The Pacific Gas and Electric Company (PG&E) has a long history of involvement in wildfires. In 2018 and 2019, investigations by the California Department of Forestry and Fire Protection (Cal Fire) found PG&E's infrastructure primarily responsible for causing two separate devastating wildfires in California, including the 2018 Camp Fire, the deadliest wildfire in California history. PG&E pleaded guilty to 84 counts of involuntary manslaughter for those who died in the Camp Fire, paying the maximum fine of $3.5 million.

However, PG&E's history with wildfires goes back much further. In 1994, the company was found guilty of criminal negligence in the Trauner Fire, which destroyed a dozen homes and a schoolhouse in Nevada County, California. PG&E was convicted of 739 counts of criminal negligence for failing to trim trees near its power lines. The company was fined $2 million for the Trauner Fire.

In 1999, PG&E was found responsible for the Pendola Fire, which burned nearly 12,000 acres of the Tahoe and Plumas National Forests. The fire was blamed on poor vegetation management and inspection programs by PG&E. The company settled a case with the U.S. Forest Service for $14.75 million.

In 2004, PG&E was blamed for the Sims Fire and Fred's Fire, which each burned more than 4,000 acres of federal forest land. Again, the fires were attributed to trees falling on the company's power lines. PG&E agreed to pay $6.1 million of the $29.5 million settlement.

In 2015, PG&E was found responsible for the Butte Fire, which burned over 70,000 acres, destroyed 365 homes, and killed two people. A Sacramento judge determined that PG&E was at fault and the company was fined around $8 million.

In October 2017, PG&E was responsible for starting thirteen separate fires that devastated Northern California, including the Redwood Fire, Sulphur Fire, and Atlas Fire. These fires were caused by electrical power and distribution lines, conductors, and the failure of power poles.

In addition to these wildfires, PG&E has been involved in numerous other incidents, such as the 2010 San Bruno gas pipeline explosion, the 2014 Carmel Gas Explosion, and the 2019 Kincade Fire. PG&E has faced problems with contamination, fires, and explosions that have impacted California residents, customers, and stockholders. The company has a long history of safety issues and has been criticised for prioritising profits over safety.

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