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PG&E says inverse condemnation is 'flawed legal doctrine and bad for customers'

SOUTHERN CALIFORNIA RECORD

Friday, November 22, 2024

PG&E says inverse condemnation is 'flawed legal doctrine and bad for customers'

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LOS ANGELES – PG&E continues to stand up to California Public Utilities Commission president Loretta Lynch who recently said the state may need to take over California’s largest investor-owned utilities company following a string of utility-sparked wildfires that have killed scores of Californians and destroyed billions in property.

Lynch made the comments in an article in the Los Angeles Times.

In some cases, PG&E’s utility equipment was linked to the incidents that sparked the wildfires and the company just lost its bid before a bankruptcy judge to avoid strict liability for some of those recent wildfires. The company, however, continues to stand against a state takeover.

“We remain firmly convinced that a government or customer takeover is not the optimal solution that will address the challenges and serve the long-run interests of all customers in the communities we serve,” said PG&E in a statement. “We remain focused on fairly resolving wildfire claims and exiting the Chapter 11 process as quickly as possible. PG&E is committed to working with all stakeholders to make the necessary changes moving forward to build a stronger and safer PG&E and be the company our customers and communities want and deserve.”

In late November, Judge Dennis Montali of the U.S. Bankruptcy Court in the Northern District of California ruled PG&E is subject to inverse condemnation and is liable for billions.

“PG&E continues to believe that imposing strict liability without regard to fault under inverse condemnation is a flawed legal doctrine and bad for our customers, our economy and our state," the company said in a statement. "Ultimately, as explained in the governor’s strike force report, the application of a strict liability regime – paired with uncertainty about IOUs’ ability to recover wildfire-related costs in rates – harms customers and the state. The state’s Commission on Catastrophic Wildfire Cost and Recovery produced similar conclusions in its final report. 

“While we are disappointed in the ruling, we understand and appreciate that there are diverse opinions on this subject. We look forward to being engaged in discussions on these important issues to all Californians.”

During the 2019 wildfire season, more than 6,872 fires have been recorded according to CalFire and the U.S. Forest Service, totaling an estimated of 253,321 acres of burned land as of Nov. 24.

Last week, PG&E announced a $13.5 billion settlement for the victims of number of devastating Northern California wildfires that wiped out thousands of homes and businesses.

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