Pacific Gas & Electric Company will pay more than $55 million to settle criminal cases involving two Northern California wildfires that burned more than 1 million acres — an area larger than Rhode Island.
District attorneys of six counties announced the settlement today in last year’s Dixie Fire and the 2019 Kincade Fire, both of which were traced back to PG&E power lines. The Dixie Fire became the largest wildfire in history, and it was the first to burn across the Sierra Nevada mountain range.
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PG&E also agreed to expedite claim payments for victims and hire an additional 200 people to monitor dry brush in its service area. Ratepayers will not fund these programs, said Sonoma County District Attorney Jill Ravitch.
“Although criminal charges are dismissed, the level of punishment and oversight provided by this Judgment is greater than could be achieved against a corporation in criminal court,” Ravitch told the Los Angeles Times.
Shares dove more than 5% after news of the settlement spread.
The beleaguered utility company is already on the hook for $2.5 billion in cash and stock for starting a 2018 wildfire that burned down the town of Paradise, killing 85 people. The company sought bankruptcy protection after pleading guilty to 84 counts of manslaughter, as the Camp Fire was the world’s deadliest disaster that year.
Cal Fire determined the Dixie Fire was caused by a tree contacting electrical distribution lines, while the Kincade blaze began when a jumper cable on a PG&E transmission tower “broke in high winds, fell and arced against the tower. The arc caused molten material to fall into vegetation and ignite below the tower.” That disaster burned more than 120 square miles and injured six firefighters. The utility was charged with 33 criminal charges, including felonies, which were dismissed in lieu of the settlement.
PG&E has a history of ignoring the need to repair aging power lines that pose a wildfire threat. An investigation by ABC10 found that the company knew power line parts had “severe wear” months before the Camp Fire.
After the settlements were reached, CEO Patti Poppe said her company will strive to do better.
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“We are committed to doing our part, and we look forward to a long partnership with these communities to make it right and make it safe,” Poppe said in a prepared statement. “We respect the leadership of the local DAs, welcome the new level of transparency and accountability afforded by these agreements, and look forward to working together for the benefit of the communities we collectively serve.”
Editor’s note: This story has been updated to describe what Cal Fire investigations determined to be the cause of the Dixie Fire and Kincade Fire.
