State senator wants to see major changes at top of PG&E
A state lawmaker who helped Pacific Gas and Electric Co. secure key legislative aid this year has called for a management shakeup in light of state regulators’ claims that the utility falsified gas pipeline safety records.
State Sen. Bill Dodd, D-Napa, said Thursday that the recent findings of the California Public Utilities Commission showed that the utility and its parent company, PG&E Corp., need “systematic change,” including on its board of directors “and in the executive suite.”
In an interview, Dodd declined to say whether he is calling for the departure of CEO Geisha Williams, who joined the company in 2007 and was promoted to her current role last year.
But he did question whether it is appropriate for PG&E directors who were in place at the time of the deadly 2010 San Bruno pipeline blast to remain. Half of the board’s current dozen members were on the board eight years ago.
“The status quo has to change, and a message has to be sent,” Dodd said. “The #MeToo movement is changing the culture in politics and business, and I think if this is what it takes to
change the culture in our utilities, it’s gotta be done.”
Dodd’s comments are the latest sign of trouble in the Capitol for the embattled utility, which has faced skepticism from lawmakers after two years of devastating wildfires.
It is also a significant step for Dodd, who proved to be a helping hand to PG&E in the past legislative session. He wrote a successful bill that lets the utility pass some wildfire-related costs along to customers.
PG&E spokeswoman Lynsey Paulo said the company understands the “serious concerns” raised by Dodd and the utilities commission and acknowledges that “while we have made progress, we have more work to do.”
“We have implemented a number of corrective actions at the operational level to address these matters,” Paulo said. “The company’s board of directors and senior management team have been actively exploring additional changes so that PG&E’s culture and practices more fully reinforce our commitment to safety, integrity and discipline. We are committed to taking the actions necessary to do the work safely and reearn the trust of our customers.”
Paulo said she could not comment further about the changes PG&E leaders are exploring.
Dodd said his sharply critical comments Thursday came after he learned about a gassafety case the utilities commission has opened against PG&E.
The commission said last Friday that a staff investigation found that, from 2012 to 2017, PG&E repeatedly falsified data about how fast it responded to requests to locate and mark its underground gas pipelines.
Dodd said he spoke this week to commission President Michael Picker, and is confident regulators will soon issue recommendations “they feel would be appropriate” regarding the structure of PG&E. The agency is already investigating the utility’s safety culture after the San Bruno blast, and has signaled support to expand that probe to include wildfires.
After the commission announced the pipeline records case, PG&E admitted it did not live up to its commitment to “accurate and thorough reporting and recordkeeping.”
Over the weekend, the utility disclosed it had made several “corrective actions,” including “some leaders no longer being with the company.” But PG&E has not said which leaders left, when or whether their departures were voluntary.
“They gotta clean house, I’m sorry,” Dodd said in a meeting with the Chronicle editorial board Monday after learning of the case. “Even in government, as inefficient and unresponsive as government can be from time to time, I can’t believe something wouldn’t be done in a case where they’re falsifying records on something that’s so important to consumer safety.”
Dodd’s sharp critique of PG&E was praised by state Sen. Jerry Hill, D-San Mateo, a longtime critic of the utility in the Legislature.
“I’m happy and pleased that there’s a growing realization of the problems inherent in the current management, leadership and structure of PG&E,” Hill said. “There should be a shareholder revolt that forces a change in leadership on the board, and membership, and the leadership at the top of PG&E.”
Hill, whose district includes San Bruno, said Williams should “absolutely not” remain in her role.
But despite the clear signals from Dodd and Hill, lawmakers have little ability to force PG&E into making any changes.
“We have been looking to see what authority we have legislatively, and at this point, it isn’t much,” Hill said.