PG&E says it made “correct decision” by implementing October power shutoffs

UPDATE 11/13/2019 2:30 p.m. PG&E has responded after state regulators ordered the utility to show why it should not be fined for violations related to power shutdowns and opened a formal investigation.

A spokesperson for PG&E told KION “We appreciate the feedback we’ve received from our regulator, the governor’s office, state agencies, our customers and our communities throughout October’s historic weather events and resulting safety shutoffs.

“We’ve taken those requests and suggestions seriously, implemented many of them in real time, and are working to implement more for potential future PSPS events. While we recognize that the scope of these events is unsustainable in the long term, it was the correct decision for safety given the large-scale, historic weather events and ensuing equipment damage that unfolded across our service area.”

Public officials and customers have complained the utility did not coordinate with local governments and failed to notify residents and businesses about the shutdowns intended to keep equipment from starting wildfires.

Four blackouts in October left nearly 2.5 million people without electricity at one point.

PG&E said it will continue to work with representatives from Cal Fire, CalOES and the CPCU and will continue to improve wildfire safety-related issues.

UPDATE 11/13/2019 1:20 p.m. California’s top utility regulator is ordering Pacific Gas & Electric Co. to show why it should not be fined for violations related to its power shutdowns in October.

The order directed at the state’s largest utility was signed Tuesday by the head of the California Public Utilities Commission and an administrative Law judge.

Each violation of state requirements involving power shutdowns by utilities could carry a $100,000 penalty.

Public officials and customers have complained the utility did not coordinate with local governments and failed to notify residents and businesses about the shutdowns intended to keep equipment from starting wildfires.

PG&E initiated four sweeping blackouts in October, leaving nearly 2.5 million people without electricity at one point.

PREVIOUS STORY: California regulators opened a formal investigation Wednesday into pre-emptive power outages that blacked out large parts of the state in October, drawing strong rebukes from public officials and residents who said the shut-offs were too broad and poorly executed.

The unanimous vote by the California Public Utilities Commission followed testimony from a handful of people who pleaded with the regulatory body for leadership at a time of increased danger from fire and other natural disasters.

“Many Californians are debating whether California is still safe. Is this a safe place to live?” said Will Abrams of Santa Rosa, whose house burned down in 2017 in wildfires that roared through Northern California wine country.

The state’s largest utility, Pacific Gas & Electric Co., initiated multiple rounds of shut-offs and plunged nearly 2.5 million people into darkness at one point throughout Northern and Central California. Some of the outages lasted for several days.

PG&E officials insisted on the shut-offs for public safety, but infuriated residents and a parade of public officials, including Gov. Gavin Newsom, said cutting off power should be used only as a last resort and that the company regularly botched communications.

Southern California Edison Co. and San Diego Gas & Electric Co. also shut off power but to far fewer people.

Nevada City Mayor Reinette Senum said Wednesday that her rural community had no working phones or internet. She wants local control over the power grid, which she said could take better care than the for-profit utility.

“Basically, we were sent back into the dark ages,” she said.

The outages raised concerns about whether the utilities “properly balanced the need to provide reliable service with public safety and were properly planned and executed,” said the order authorizing the investigation.

CPUC President Marybel Batjer requested the investigation, saying that widespread outages “cannot be the new normal for California.”

Commissioners said Wednesday that they want to know if utilities took the proper steps and what can be done to improve such shut-offs or lessen their scope in the future.

Abrams not only lost his home in the 2017 wildfires, but his children had to endure smoke from a deadly 2018 wildfire in Paradise. Last month, the family evacuated from another Sonoma County wildfire and were terrified to cross into the San Francisco Bay Area amid smaller grassland fires sparked by PG&E lines falling amid high, hot winds, he said.

“The wonderful thing about regulators is you can cut through the rhetoric,” he said.

Commissioners have been stewing over the outages.

Last month, they grilled PG&E officials at an emergency meeting called by Batjer, demanding answers for why the utility was so unprepared for an Oct. 9 shutdown in which counties and customers struggled with a crashing website and overworked call lines to get information.

Batjer said she was “absolutely astounded” by the company’s lack of preparation.

When many cell towers were down and internet services out, the utility was telling people to get information from a website, through family or call on a landline.

The outages were astonishing for a state that is one of the world’s economic powerhouses. People made frantic dashes for cash and gas as businesses watched their goods spoil. Some elderly and disabled people were trapped in their apartments with elevators out of service.

PG&E initiated five rounds, with the smallest affecting about 30,000 people and the largest affecting nearly 2.5 million. Residents in San Francisco suburbs and in Northern California wine country were without power for days.

Bill Johnson, CEO of Pacific Gas & Electric Corp., said the outages were the right call and kept people safe, although a transmission line in Sonoma County that was not powered off malfunctioned minutes before a wildfire erupted Oct. 23, forcing about 180,000 people to evacuate.

The company is in bankruptcy and faces $30 billion in liabilities after its equipment was found to have started several deadly wildfires in 2017 and 2018, including the year-old Camp Fire that killed 85 in Butte County.

In September, PG&E reached an $11 billion settlement with most of the insurers covering victims of deadly wildfires, but Newsom is stepping up pressure on PG&E to fork over billions more.

If PG&E doesn’t make changes, Newsom is threatening to try to turn the utility into a customer-owned cooperative run by the state and local governments. The company so far has defended its proposal as a fair deal for all parties involved in its bankruptcy.

Southern California Edison also initiated five preventive outages but to far fewer customers. The company has announced that its equipment likely caused last year’s Woolsey Fire, which killed three people and destroyed hundreds of homes in Los Angeles and Ventura counties.