California’s largest utility names new CEO
Pacific Gas and Electric’s parent company named a new CEO on Wednesday, hiring a Michigan utility executive to run the nation’s largest utility as it confronts California’s mounting wildfire risks following a stint in bankruptcy.
Patricia K. “Patti” Poppe, who has been CEO of CME Energy Corp., will take over Jan. 4. She replaces William Smith, who is PG&E Corp.’s interim chief executive.
Pacific Gas and Electric described Poppe as a leader on clean energy and public safety — two goals paramount for any California utility executive in an era of climate change. The Michigan company saw safety incidents decrease by 70% since 2008, according to PG& E; Poppe has run the company since 2016.
“As the leader of Michigan’s largest utility, Patti has embraced technology and put the company on a course to achieving its ambitious clean energy goals while maintaining steady and safe performance,” said PG& E chairman Robert Flexon in a prepared statement.
She takes over a company that successfully emerged from bankruptcy in June but continues to struggle with the very issue that landed it in bankruptcy in the first place: wildfire dangers.
On Tuesday, the company was sued by eight local governments in Sonoma County over the October 2019 Kincade Fire, which forced the evacuation of nearly 200,000 county residents. Previously, PG&E has said it could face liabilities totaling $625 million from the Kincade Fire, which state investigators say was caused by a faulty transmission line.
PG&E also has told investors it faces a “significant liability” in connection with
the Zogg Fire, which killed four residents of Shasta County in September. That fire remains under investigation.
The utility was driven into bankruptcy in January 2019 by billions of dollars in liabilities from the 2017 wine country fires and the 2018 Camp Fire. The Camp Fire destroyed much of Paradise, killed 85 people and left PG& E pleading guilty to manslaughter charges.
Under pressure from Gov. Gavin Newsom, the company overhauled its leadership and safety protocols as a condition for leaving bankruptcy. The company has also wrestled with implementing a series of “public safety power shutoffs” during fierce windstorms,
which have proven unpopular with customers and government officials but — according to PG& E — has significantly reduced wildfire risks.
“As California’s largest utility, PG&E has the privilege of powering one of the world’s largest economies
and the opportunity to help lead the state’s clean energy future. It also faces significant challenges,” Poppe said in a prepared statement.
PG& E’s stock price rose 70 cents a share, to $12.42, in early New York Stock Exchange trading following the announcement.