California’s privately-owned electric utilities and their regulators have a long and difficult job ahead as they try to figure out what was good and what was bad about last week’s massive wildfire prevention power cuts. Their eventual conclusions will have a significant impact on how utility pole routes are managed in California, including possible new, and more costly, design standards, and budgets for maintenance and wildfire prevention. Those costs will ultimately be shared with telecommunications companies that also use those poles.… More
Southern California Gas and Electric can’t pass on wildfire costs to ratepayers. The federal supreme court declined to hear SDG&E’s appeal of a California Public Utilities Commission decision that put some of the burden of a 2007 series of wildfires on company shareholders. California’s strict “inverse condemnation” law requires utilities to bear the full cost of any damage when their pole routes, or other equipment in the right of way, is even partially to blame. Monday’s decision lets that principle stand.… More
Update: PG&E shut off power this morning, as previously announced. As of this evening, it had restored power in north Bay Area counties, and some of the affected Sierra foothill communities. SCE turned power back on for the Riverside County homes affected by Tuesday’s cuts. Public reaction to PG&E de-energisation moves remained as relatively muted as it did on Tuesday. The San Francisco Chronicle spoke to one upset Sonoma County supervisor, but on the whole there was very little NIMBY outrage.… More
Californian electric utilities will have clearer guidance on how, if not when, to shut down – de-energise – local power lines when the danger of sparking a wildfire is at its peak. That’s assuming a decision drafted by California Public Utilities Commission president Michael Picker is approved later this month. It’s not the full and final instruction manual, but it’s a start. The new procedures will be in place for this year’s wildfire season and can be improved as time goes on.… More
California governor Gavin Newsom’s wildfire “strike force” published its findings on Friday. The report offers suggestions for preventing, or at least reducing, catastrophic wildfires, and for paying for the damage when they do happen. The short answer is spread the costs around.
One of the central concepts floated by the report is to change California’s strict liability standard, which requires electric and telecoms utilities to pay for all wildfire damages if their equipment is involved in starting a fire, whether or not they did something wrong.… More
If a local government allows homes to be built in high risk communities and doesn’t build or manage infrastructure in a way that mitigates that risk, could it be as responsible for disasters as an electric company that similarly installs and operates electric lines to serve those areas? That question was handed to a Los Angeles County superior court judge on Friday by Southern California Edison.
Turning off electric power lines in dry, windy conditions is one way to reduce the risk of catastrophic wildfires. The California Public Utilities Commission is about to start the wheels turning on an investigation into how and when that should be done. Optimistically, the draft order instituting rulemaking predicts that it’ll be wrapped up sometime next summer.
Last summer, the CPUC allowed Pacific Gas and Electric, Southern California Edison and a handful of smaller “investor owned” electric utilities to do the same kind of proactive de-energisation that San Diego Gas and Electric has been allowed to do since 2008.… More
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.… More
The door has officially closed on expansions of Pacific Gas and Electric’s and Southern California Edison’s telecommunications businesses. It’s a small issue compared to the wildfire disasters that both companies are grappling with, but it could have a significant and ongoing effect on California’s uncompetitive broadband services market.
At its last meeting, the California Public Utilities Commission voted to allow PG&E to withdraw its application to become a certified telecommunications company. It applied last year, hoping to make better use of the 2,600 miles of fiber optic routes it owns in northern California.… More
Pacific Gas and Electric and, to a somewhat lesser extent, Southern California Edison face the potential of billions of dollars of liability for 1. this year’s wildfires, 2. last year’s wildfires and 3. preventing next year’s wildfires. Someone will have to pay the tab that fires have already run up in California. Under state law, if a utility is even partly to blame it has to bear the full burden, generally. But utilities, even highly regulated ones like privately owned electric companies, can pass some or all of those costs on to their customers.… More