Plan to allow electric utilities to pass on 2018 wildfire costs to customers is on hold

by Steve Blum • , , , ,

Any help with wildfire liability that major electric companies might be expecting from the California legislature will wait until next month. Assemblyman Chris Holden (D – Los Angeles) didn’t introduce his planned bill when the legislature met briefly to swear in new members and open the new session. Holden had planned to, at a minimum, allow Pacific Gas and Electric and Southern California Edison to add damage costs to customers’ bills for 2018 wildfires. The legislature voted in August to allow them to pass on those costs to consumers for fires in 2017 and 2019 and beyond. But not for this year.

According to a story in the Los Angeles Times by John Myers, there’s significant opposition to offering PG&E, in particular, a helping hand….

“I’m very concerned,” Holden said. “I think there are a very fragile set of circumstances.”

Critics, however, are poised to pounce. Some believe the timing is inappropriate, so soon after the catastrophic Camp fire in Butte County. Others see the effort as tantamount to punishing utility customers — particularly those of Pacific Gas & Electric Co. — through higher bills.

“All of this conversation is premature,” said state Sen. Jerry Hill (D – San Mateo), a frequent PG&E critic. “There is a major cost to ratepayers that I think is outrageous.”

That cost will run into the billions of dollars, assuming that early indications that point to PG&E electric transmission lines as the cause of the disastrous Camp Fire in Butte County turn out to be true. The way California law works, if a utility – electric or telecoms – is even partly to blame for starting a fire, then it’s responsible for the entire cost. Earlier this year, lawmakers rejected utility requests to change that.

The legislature reconvenes in January, which is the next opportunity for Holden and Hill, who has talked about bringing PG&E’s service territory under direct state control, to move ahead with new bills.