San Francisco Chronicle

We shouldn’t pay for PG&E’s mistakes

- By Terry Nagel Terry Nagel is the former mayor of Burlingame. This opinion is her own.

It’s hard to believe that California legislator­s may let Pacific Gas and Electric Co. escape responsibi­lity for the wildfires its equipment caused last year and stick consumers with the bill.

It reminds me of the day back in November 2002 when our home in Burlingame was one of 627,000 in the Bay Area that lost power during the first major storm of the season, and I read in the paper — by candleligh­t — that state regulators had voted to make California­ns pay $6 billion to bail out the state’s largest utilities because of the poor decisions they made during the state’s energy crisis.

After Burlingame residents filed more than 250 complaint letters with the California Public Utilities Commission, PG&E upgraded our city’s power lines and ended recurring power failures, some of which used to last for days. Then, after a PG&E gas line exploded in San Bruno in 2010, killing eight people, we learned that PG&E’s halfcentur­y-old undergroun­d lines on the Peninsula hadn’t been maintained. State regulators approved a rate increase for two years to fix them. Ultimately, the utility was fined $1.6 billion and convicted of six felony counts for the San Bruno tragedy.

At least three proposals now being considered by state legislator­s would change the law to allow PG&E to shift responsibi­lity for wildfire costs to victims and their insurers, ratepayers or the state. The utility’s insurance coverage falls short of covering the cost. But PG&E’s escape plan is complicate­d by being found at fault for 16 of 2017 Wine Country wildfires, perhaps criminally in 11. Making giant payouts to company executives and maintainin­g an army of lobbyists and lawyers also do not support the company’s cries of financial distress.

PG&E spent $4 million to lobby officials and influence campaigns last year, and it was the top spender on lobbying in the state last quarter, when it spent $1.7 million on lobbying, primarily on wildfire issues. Its PR campaigns blame climate change, not its own practices, for the challenges it faces.

There is precedent for holding utilities responsibl­e for faulty equipment and poor maintenanc­e. Last year, state regulators refused a request by San Diego Gas & Electric Co. to recover $379 million in fire costs from ratepayers. Investigat­ors from the California Department of Forestry and Fire Protection said the fires were caused in part by problems with power lines and other SDG&E equipment.

Under the constituti­onal protection of “inverse condemnati­on,” a utility must compensate property owners for damages caused by its equipment, whether or not the company behaved negligentl­y. To the delight of utilities, Gov. Jerry Brown unveiled a proposal in late July that would ease utilities’ burden of strict liability and change the criteria for courts when considerin­g inverse condemnati­on in civil suits.

In contrast, Senate Bill 819 by state Sen. Jerry Hill does not alter the existing protection­s to property owners under inverse condemnati­on or change the standards California regulators use in determinin­g whether utilities acted unreasonab­ly or imprudentl­y in cases involving damages caused by electrical or gas companies. SB819 ensures that ratepayers do not shoulder the costs of utility negligence, and it provides incentives for utilities to act responsibl­y.

Approving SB819 is a much better idea than changing state law to reduce utilities’ liability responsibi­lity for poor maintenanc­e and safety practices. If PG&E and others don’t have to pay for the consequenc­es of their actions, they will have no incentive to change their bad habits. We’ll just keep paying the bill.

 ?? Justin Sullivan / Getty Images ?? Pacific Gas & Electric Co. wants to shift responsibi­lity for wildfire costs to victims and their insurers, ratepayers or the state.
Justin Sullivan / Getty Images Pacific Gas & Electric Co. wants to shift responsibi­lity for wildfire costs to victims and their insurers, ratepayers or the state.

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