Pacific Gas and Electric Company facts for kids
 |
|
| Public | |
| Traded as | |
| Industry | |
| Founded | 1905 |
| Headquarters | |
|
Key people
|
|
| Products | |
| Revenue |  US$24.42 billion (2024) |
|
Operating income
|
 US$4.459 billion (2024) |
| US$2.475 billion (2024) |
|
| Total assets | US$133.7 billion (2024) |
| Total equity | US$30.15 billion (2024) |
|
Number of employees
|
28,400 (2024) |
The Pacific Gas and Electric Company (PG&E) is a large American company. It provides natural gas and electricity to millions of homes. PG&E serves customers in the northern two-thirds of California. This area stretches from Bakersfield up to the borders of Oregon and Nevada.
PG&E is a main part of a larger company called PG&E Corporation. The company started on October 10, 1905. It was formed by combining several smaller utility companies. By 1984, it was the biggest electric utility in the United States. PG&E is one of six main electric companies in California.
In recent years, PG&E has faced serious challenges. Investigations found that the company's equipment caused major wildfires in California. This included the 2018 Camp Fire, which was the deadliest wildfire in California's history. Because of these events, PG&E had to file for bankruptcy in January 2019. The company successfully exited bankruptcy by June 30, 2020.
Contents
- How PG&E Started
- How PG&E Generates Power
- PG&E and the Environment
- Native American Protest
- Safety Incidents
- South San Joaquin Irrigation District (SSJID)
- Images for kids
How PG&E Started
Early Beginnings
Gas Lighting in San Francisco
In the 1850s, gas was first used in the United States for lighting. Cities in the eastern U.S. built gas factories. But the western U.S. did not have a gas industry yet. San Francisco only had a few street lights that used oil lamps.
Three brothers, Peter, James, and Michael Donahue, owned a large shipbuilding company. They became interested in making gas for lighting. In July 1852, James Donahue received permission to build a gas factory. He also got permission to lay pipes and install street lamps in San Francisco. The city wanted gas to be affordable for everyone.
The San Francisco Gas Company was officially started on August 31, 1852. It was the first gas utility in the West. Its motto was "Fiat Lux," meaning "let there be light." Work on the gas plant began in November 1852. On February 11, 1854, San Francisco's streets were lit by gas for the first time.
Gas lighting quickly became popular. In its first year, the company had 237 customers. This number more than doubled the next year. By the end of 1855, the company had laid over 6.5 miles of pipe. There were also 154 street lamps in use.
Other gas companies tried to compete. The San Francisco Gas Company bought out most of these smaller rivals. However, the City Gas Company, started by the Bank of California, became a strong competitor in 1870. They started a price war. In 1873, the two companies decided to merge. This created the San Francisco Gas Light Company.
Electricity Arrives
Gas companies faced new competition when electric lighting came to California. In 1879, San Francisco was the first U.S. city to have a central power station for electric customers. To stay competitive, the San Francisco Gas Light Company tried new gas lamps. But these were too expensive.
Meanwhile, more and more stores and factories in downtown San Francisco wanted electric light. The first electric street light in San Francisco was put up in 1888. The electrical grid slowly grew. A second power station was built in 1888 to make more electricity.
Another type of gas, called water gas, also became popular in the 1880s. It was an improved way to make light. The Pacific Gas Improvement Company became a strong competitor using this new method.
In 1888, San Francisco Gas Light built its own water gas plant. Making water gas was successful because oil became cheaper. The company also built a modern gas plant that could use both water gas and coal gas. This was finished in 1891. It was the largest gas holder in the U.S. west of Chicago.
In 1896, the Edison Light and Power Company joined with the San Francisco Gas Light Company. They formed the new San Francisco Gas and Electric Company. Combining gas and electric companies helped them save money and avoid competition. Other companies also merged into San Francisco Gas and Electric Company over time. In 1903, they bought their main gas competitor, the Pacific Gas Improvement Company.
Forming Pacific Gas and Electric Company
.jpg)
John Martin and Eugene J. de Sabla were gold miners. They started using hydroelectric power from rivers. They built hydro plants in Nevada City in 1895 and other parts of Northern California.
In the early 1890s, Martin and de Sabla began building a hydroelectric power station. It was on the South Fork of the Yuba River.
In 1899, Martin and de Sabla created the Yuba Power Company. In 1900, they formed the Bay Counties Power Company. This company built a 140-mile power line for an electric railway in Oakland. In 1903, John Martin and Eugene de Sabla started the California Gas & Electric Company. Their goal was to buy and combine gas and electric power businesses. They bought many companies, including the San Francisco Gas & Electric Company in 1905.
Finally, in 1905, Martin and de Sabla formed the Pacific Gas and Electric Company.
On October 10, 1905, the San Francisco Gas and Electric Company and the California Gas and Electric Corporation officially merged. This created PG&E. The merger gave California Gas and Electric Corporation access to the large San Francisco market. It also helped San Francisco Gas and Electric Company improve its electric system. Before, its power came only from steam plants. These could not compete with cheaper hydroelectric power. After the merger, the two companies worked to combine their systems. However, they remained separate companies until 1911.
PG&E began delivering natural gas to San Francisco and northern California in 1930. A very long pipeline connected gas fields in Texas to northern California. This pipeline had special stations every 300 miles to help move the gas. When natural gas arrived, PG&E started closing its older, more polluting gas factories. Today, PG&E uses a network of pipelines. It serves 4.2 million customers from Bakersfield to the Oregon border.
In the 1950s and 1960s, a chemical was used to prevent rust in cooling towers. This chemical, hexavalent chromium, later caused water pollution in Hinkley, California. The company disposed of the water from these cooling towers near the stations.
The 1906 San Francisco Earthquake
The 1906 San Francisco earthquake greatly affected PG&E. The company's offices were damaged by the quake. They were then destroyed by the fires that followed. PG&E's San Francisco Gas and Electric Company lost many pipes and electric wires. Only a few gas and electric plants, far from the city, survived.
These working facilities were very important for rebuilding San Francisco. Many of PG&E's competitors went out of business after the earthquake. But PG&E had enough money to survive, rebuild, and grow.
Expanding Services
Sacramento Electric, Gas and Railway Company
In 1906, PG&E bought the Sacramento Electric, Gas and Railway Company. This gave them control of railway operations in and around Sacramento. The Sacramento City Street Railway began operating under the PG&E name in 1915. Its tracks and services grew. By 1931, the Sacramento Street Railway Division ran 75 streetcars on 47 miles of track. PG&E's streetcars got their power from the company's hydroelectric plant in Folsom. In 1943, PG&E sold the rail service. The streetcar lines were later replaced by bus service. All tracks were removed by 1947.
More Growth and Mergers
Within a few years of its start, PG&E became a major player in Northern California's hydroelectric industry. It bought many water storage and delivery systems. These included reservoirs, dams, and canals built by mining companies. By 1914, PG&E was the largest combined utility system on the Pacific Coast. It handled 26 percent of California's electric and gas business. Its operations covered 37,000 square miles across 30 counties.
The company continued to grow in the 1920s by buying other companies. Important purchases included the California Telephone and Light Company and the Western States Gas and Electric Company. By the end of 1927, PG&E had almost one million customers. It provided electricity to 300 communities in Northern California.
In 1930, PG&E bought most of the stock in two other large California utility systems. These were Great Western Power and San Joaquin Light and Power. This deal gave PG&E control of these companies. Through this final major merger, PG&E soon served almost all of Northern and Central California with one connected system.
Natural Gas Expansion
The discovery of huge natural gas fields in the American Southwest changed the gas industry. Natural gas was cleaner and cheaper to produce than manufactured gas. While Southern California had natural gas, Northern California did not have easy access to it. In 1929, PG&E built a 300-mile pipeline. This brought natural gas from the Kettleman oil field to San Francisco.
San Francisco became the first major city to switch from manufactured gas to natural gas. This change required adjusting 1.75 million appliances. In 1936, PG&E expanded its gas network with another pipeline. PG&E slowly closed its gas manufacturing plants.
During World War II, natural gas sales increased in California. But this also used up the state's natural gas reserves. In 1947, PG&E made a deal to buy natural gas from Texas and New Mexico. This gas came through a new 1,000-mile pipeline to Los Angeles. Another agreement was made with the El Paso Natural Gas Company for gas delivery to the California-Arizona border. In 1951, PG&E finished a 502-mile main pipeline. This connected to the El Paso network.
Nuclear Power and Pipelines
In 1957, PG&E opened the Vallecitos Nuclear Center. This was the first privately owned nuclear reactor in the United States. It was located in Pleasanton, California. The reactor first produced 5,000 kilowatts of power. This was enough to power a town of 12,000 people.
PG&E also continued to develop natural gas supplies. In 1959, the company began working to bring a large amount of natural gas from Alberta, Canada, to California. This would happen through a new pipeline. Construction of this 1,400-mile pipeline took 14 months. It was officially opened in early 1962.
PG&E started building another nuclear facility, the Diablo Canyon Power Plant, in 1968. Its opening was delayed for several years. This was due to environmental concerns and safety worries. Testing of the plant began in 1984. It reached full power in 1985.
During the building of Diablo Canyon, PG&E tried to bring more natural gas from the North. In 1972, the company explored building a 3,000-mile pipeline from Alaska. This pipeline would go through the Mackenzie River Valley. It would then connect to the pipeline from Alberta.
In 1977, the Mackenzie Valley Pipeline project was approved in the U.S. But it still needed approval from Canada. A Canadian judge put the project on hold for at least 10 years. This was because of concerns from First Nations groups. They worried about the pipeline crossing their land. There were also worries about its environmental impact.
In 1984, David Roe, a descendant of PG&E's founder, published a book. He was an environmentalist. He argued that saving energy and using alternative energy sources could meet the nation's electricity needs. This was during a time when many people were against nuclear power.
Changes and Challenges
By December 1992, PG&E operated many electric generating units and stations. It had 18,450 miles of transmission lines. It also had 101,400 miles of distribution lines.
In 1997, PG&E reorganized into a larger company called PG&E Corporation. This company had two main parts: PG&E, the regulated utility, and a separate energy business.
In the late 1990s, electricity markets changed. PG&E sold most of its natural gas power plants. The company kept its hydroelectric plants, the Diablo Canyon Power Plant, and a few natural gas plants. But selling the large gas plants meant PG&E had to buy more power from other companies. They bought this power at changing prices. However, they had to sell it to customers at a fixed price. This led to the California electricity crisis starting in 2000.
During this crisis, there was a serious power shortage. This caused planned power outages, called rolling blackouts, starting on January 17, 2001.
Fires in the 1990s
In 1994, PG&E was found responsible for causing the Trauner Fire in Nevada County. The fire burned many acres and destroyed homes and a school. PG&E was found to have caused the fire due to safety issues.
In 1996, a PG&E power station in San Francisco caught fire. An investigation in 2003 found PG&E responsible for this fire due to safety problems.
The 1999 Pendola Fire burned nearly 12,000 acres in national forests. It was found to have been caused by PG&E not managing vegetation properly.
Bankruptcy in 2001
In 1998, rules for California's public utilities changed. The California Public Utility Commission (CPUC) set the prices PG&E could charge customers. PG&E had to provide as much power as customers wanted at these set prices.
In the summer of 2001, a drought reduced the amount of hydroelectric power available. Usually, PG&E could buy cheap hydroelectric power. But the drought and other issues reduced available electricity.
PG&E had little power of its own. It had to buy electricity from other suppliers at high prices. Some suppliers took advantage of this and charged very high rates. But the CPUC would not let PG&E raise its prices to match these costs. Because PG&E had to buy power for more than it could sell it, the company started losing a lot of money.
PG&E Company (the utility part) filed for bankruptcy on April 6, 2001. The state of California tried to help the utility. But the state also lost a lot of money because of the same pricing rules. The crisis cost PG&E and the state between $40 and $45 billion.
PG&E Company came out of bankruptcy in April 2004. It paid $10.2 billion to its creditors. As part of this, PG&E's electricity customers had to pay higher prices for several years to help pay off the debt.
Bankruptcy in 2019
PG&E faced potential costs of $30 billion from wildfires between 2015 and 2018. Because of this, Pacific Gas and Electric Company announced on January 14, 2019, that it would file for bankruptcy. On January 29, 2019, PG&E Corporation, the parent company, officially filed for bankruptcy protection. The company needed to exit bankruptcy by June 30, 2020. This was important to be part of a new California state wildfire insurance fund.
On August 16, 2019, a judge ruled that a trial could happen to decide who was responsible for the Tubbs Fire. Cal Fire had said customer equipment caused it. But lawyers for wildfire victims said PG&E equipment was to blame. This trial was later replaced by an agreement where PG&E accepted responsibility for the Tubbs Fire.
The Kincade Fire started on October 23, 2019. It was initially unclear if PG&E was responsible. On July 16, 2020, after PG&E left bankruptcy, Cal Fire reported that PG&E transmission lines caused the fire. Damages from this fire were not covered by the earlier wildfire victim settlement.
PG&E reached agreements to pay for wildfire damages. In June 2019, it settled for $1 billion with state and local governments. In September 2019, it settled for $11 billion with insurance companies. Later, PG&E offered a $13.5 billion fund to cover claims from wildfire victims. This fund would cover claims for injuries, property loss, and business losses.
On October 9, 2019, a judge allowed a plan from PG&E's bondholders to be considered. This plan would have given bondholders control of the company. But PG&E later reached an agreement with the bondholders and wildfire victims. This meant PG&E's own plan would be the only one considered.
On November 12, 2019, PG&E increased its proposed payment for wildfire victims to $13.5 billion. This amount was similar to the bondholders' proposal. This brought the total amount for fire claims to $25.5 billion. This included $11 billion for insurance companies, $1 billion for governments, and $13.5 billion for other claims.
On December 6, 2019, PG&E proposed to settle wildfire victim claims for $13.5 billion. This would cover its responsibility for the Camp Fire, Tubbs Fire, Butte Fire, and the 2017 North Bay Fires. Victims would receive half of this settlement in company stock. On June 12, 2020, PG&E agreed to increase the amount of stock. Victims would be paid in cash, partly from the settlement's cash portion and partly from stock sold for cash.
On December 17, 2019, a case related to the Ghost Ship warehouse fire continued against PG&E. This fire was not a wildfire. PG&E settled this civil lawsuit for 32 victims in August 2020. The amount was not shared, but it was limited to PG&E's insurance coverage for 2016.
On June 16, 2020, PG&E admitted responsibility for 84 deaths in the Camp Fire. It paid a fine of $3.5 million. This ended further criminal charges against the company.
On June 20, 2020, a U.S. Bankruptcy Judge approved PG&E's plan to exit bankruptcy. This met the June 30, 2020, deadline. On July 1, PG&E put $5.4 billion cash and 22.19% of its stock into the Fire Victim Trust. This covered most of its payments to wildfire victims. PG&E has two more cash payments of $1.35 billion due in January 2021 and January 2022.
This bankruptcy was the largest utility bankruptcy in U.S. history. It was also one of the most complex.
In November 2020, Patti Poppe was announced as the new CEO of PG&E Corporation. She started on January 4, 2021. In April 2022, it was reported that CEO Patti Poppe received over $50 million in total pay for 2021. Most of this was in company stock.
In June 2020, PG&E announced plans to move its headquarters to 300 Lakeside Drive in Oakland. The move will happen in stages from 2022 to 2026.
In December 2024, the Department of Energy offered PG&E a $15 billion loan. This loan is for expanding hydropower and battery storage. It will also help upgrade transmission lines and create virtual power plants.
How PG&E Generates Power
PG&E owns many ways to generate electricity. These include a large hydroelectric system, one working nuclear power plant, and one working natural gas power plant. Two other plants have been permanently closed.
Hydroelectric Power
PG&E is the largest private owner of hydroelectric facilities in the United States. It has 174 dams. Its hydroelectric system includes 110 generating units at 68 powerhouses. This includes the Helms pumped storage facility. The total power capacity is 3,896 MW. The system also has 99 reservoirs, 56 diversions, 172 miles of canals, and many miles of tunnels and pipes.
The biggest part of this system is the Helms Pumped Storage Plant. It is located near Sawmill Flat in Fresno County, California. Helms has three units, each making 404 MW of power. This totals 1,212 MW. The facility moves water between two reservoirs, Courtright and Wishon. It drains water from Courtright to make electricity when demand is high. It then pumps water back into Courtright from Wishon when demand is low. The Haas Powerhouse is located over 1,000 feet inside a granite mountain.
Nuclear Power
The Diablo Canyon Power Plant is in Avila Beach, California. It is the only working nuclear power plant owned by PG&E. This plant can produce 2,240 MWe of power from two units. It was designed to be expanded to four units. In 1981, 1,900 activists were arrested at Diablo Canyon. This was the largest arrest in the history of the U.S. anti-nuclear movement.
In June 2016, PG&E announced plans to close Diablo Canyon in 2025. If this happens, California will not have any working commercial nuclear power plants. This will mean losing 2256 MW of power that produced over 18,000 GWh of electricity each year.
The company also operated the Humboldt Bay Nuclear Power Plant, Unit 3 in Eureka, California. It was the oldest commercial nuclear plant in California. It produced 65 MWe. The plant worked for 13 years. It was shut down in 1976 for safety upgrades. New rules after the Three Mile Island accident made the plant too expensive to restart. Unit 3 is currently being taken apart. This process was expected to finish in 2019.
PG&E once planned to build a nuclear power plant at Bodega Bay. This was a fishing village north of San Francisco. The idea was controversial. Conflict with local citizens began in 1958. In 1963, there was a large protest at the proposed site. The plans for the power plant were stopped in 1964.
Other Power Sources
Two natural gas/fuel oil units at Humboldt Bay Power Plant were built in 1956. They produced 105 MWe. These units were retired in 2010. They were replaced by the Humboldt Bay Generating Station, built on the same site. The new station produces 163 MWe using natural gas. It is 33% more efficient. It also produces fewer harmful emissions. It uses a closed-loop cooling system, so it doesn't use water from Humboldt Bay for cooling.
PG&E also took ownership of a partially built natural gas unit in Antioch, California. This was part of a settlement with Mirant Services LLC. The 530 MW unit, called the Gateway Generating Station, was finished by PG&E. It started operating in 2009.
On May 15, 2006, PG&E closed its 48-year-old Hunters Point Power Plant in San Francisco.
In 2008, PG&E started building a 660 MW natural gas power plant in Colusa County. It began operating in December 2010. This plant uses modern technology and environmental design. It uses dry cooling technology to greatly reduce water use. It also uses cleaner-burning turbines to reduce CO2 emissions.
Solar Power
On April 1, 2008, PG&E announced plans to buy power from three new solar power plants in the Mojave Desert. These plants would produce 500 MW of power. This is enough electricity for over 375,000 homes.
In April 2009, PG&E explored a project to get 200 megawatts of power from space. This method would get electricity from the sun without being affected by night.
PG&E and the Environment
Starting in the mid-1970s, new rules in California pushed utilities to change. In 1976, a law was passed that stopped the building of new nuclear power plants. Environmental groups also argued that PG&E should focus on energy efficiency. They said this would be cheaper than building more power plants. As a result, PG&E was fined $50 million for not doing enough to promote energy efficiency.
In the early 2000s, PG&E leaders publicly supported California Assembly Bill 32. This law aimed to reduce greenhouse gas emissions by 25% by 2020. The bill became law in September 2006.
In 2014, 28% of PG&E's power came from renewable sources. By 2016, this increased to 32.9%. In 2017, PG&E announced that 80% of its electricity came from sources that don't produce greenhouse gases. This included renewables, nuclear, and hydropower. About 33% came from renewable sources. This met California's goal for 2020 almost three years early.
In February 2019, PG&E shared its Wildfire Safety Plan. This plan described its efforts to prevent wildfires caused by electrical equipment. The company has increased its prevention efforts. It also discusses how to adapt to climate change as extreme weather increases.
In June 2020, PG&E announced a research effort with other companies. They plan to convert raw biogas into carbon-neutral methane. This technology could use energy from renewable sources like wind and solar. It would create fuel from landfills, sewage, and dairy farms.
Carbon Footprint
PG&E measures its total carbon emissions. For the twelve months ending December 31, 2019, these emissions were 4,510 kilotonnes. This was a small decrease from the previous year.
| Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 |
|---|---|---|---|
| 4,950 | 4,650 | 4,570 | 4,510 |
Native American Protest
In 1970, the Pit River Tribe started a boycott of PG&E. The tribe said that the land PG&E was using belonged to them. They believed they should receive profits from it. People supported the tribe by sending boycott checks.
Safety Incidents
Water Contamination in Hinkley, California
From 1952 to 1966, PG&E disposed of about 370 million gallons of water. This water contained hexavalent chromium, a harmful chemical. It was dumped into ponds near Hinkley, California. PG&E used this chemical to prevent rust in its cooling towers.
PG&E did not tell the local water board about the contamination until December 7, 1987. The residents of Hinkley filed a successful lawsuit against PG&E. The company paid $333 million. This was the largest settlement in a direct lawsuit in U.S. history. The legal case became very famous. It was even shown in the 2000 film Erin Brockovich.
In 2001, a committee was formed to study the effects of chromium-6 when swallowed. In 2003, it was revealed that experts from PG&E were on this committee. They influenced the final report, which said other reports were too alarming. In July 2014, California became the first state to say that swallowed chromium-6 is linked to cancer. It set a new safety limit for chromium-6 in drinking water.
By 2013, PG&E had cleaned up 54 acres. But the cleanup is expected to take another 40 years. PG&E built a concrete wall to contain the pollution. They also pump ethanol into the ground to change the harmful chemical into a safer form. They have also planted alfalfa. In 2015, PG&E was ordered to clean up more of the chromium waste. By then, the polluted area had grown to 8 miles long and 2 miles wide. In early 2016, the New York Times reported that Hinkley was becoming a ghost town because of the contamination.
A report in 2010 said there was no cancer cluster in Hinkley related to chromium 6. But in 2013, another group found problems with this analysis. They said it did not include people who were exposed to the worst contamination.
Metcalf Sniper Attack
On April 16, 2013, gunmen attacked the Metcalf transmission substation in Coyote, California. They damaged 17 large transformers. This caused over $15 million in damage. The attackers also cut a fiber-optic cable. PG&E and AT&T offered a reward for information, but the culprits were never found. The Federal Bureau of Investigation said it was not domestic terrorism. The Department of Homeland Security thought it might have been an 'inside job'.
Wildfires Caused by PG&E Equipment
PG&E equipment has often been found responsible for starting wildfires in California. The company has faced serious consequences in many cases involving fires. These include the 1994 Trauner Fire, a power station fire in San Francisco in 1996, and the 1999 Pendola Fire. Other incidents include the 2004 Sims Fire and Fred's Fire, an explosion in San Francisco in 2005, and the 2008 Rancho Cordova Gas Explosion. More recent events include the 2010 San Bruno pipeline explosion, the 2014 Carmel Gas Explosion, the 2015 Butte Fire, and the 2018 Camp Fire.
About 40 of the 315 wildfires in PG&E's service area in 2017 and 2018 were linked to PG&E equipment.
PG&E was already under special supervision after being found responsible for the 2010 San Bruno fire. This supervision expanded to include electricity equipment after the 2017 fires. There were also claims that the utility had incorrect gas pipeline records between 2012 and 2017.
PG&E, like other large California utilities, must now submit a yearly wildfire prevention plan. Judges reviewed the plan submitted in February 2019. They suggested more ways to measure progress and partnerships with local governments. They also suggested looking into whether turning off power restarts could reduce the need for power shutoffs.
Company Responsibility
California law states that utilities are responsible for damages from any fire caused by their equipment. This is true even if they maintained their equipment and surrounding plants properly. This policy led to PG&E facing $30 billion in costs from the 2017 and 2018 fires. This was a major reason for its bankruptcy.
In July 2019, a new $21 billion wildfire trust fund was created. This fund helps pay for damages from future wildfires. It is split equally between utility and customer money. It also changed the rules so customers must prove a company was careless before they are held responsible for damages.
Undergrounding Power Lines
As of 2019, California's utilities have 26,000 miles of high voltage transmission lines. They also have 240,000 miles of distribution lines. Distribution lines bring electricity directly to homes. Two-thirds of these lines statewide are above ground.
Burying transmission lines costs about $80 million per mile. For distribution lines, burying them costs about $3 million per mile. Overhead lines cost about $800,000 per mile.
PG&E has 107,000 miles of distribution lines. About 81,000 miles are overhead. In 2019, burying all of PG&E's overhead distribution lines would cost $240 billion. This would be about $15,00E per PG&E customer. This estimate is only for distribution lines, not the higher voltage transmission lines.
In July 2021, PG&E announced plans to bury another 10,000 miles of its distribution lines over the next 10 years. This is about 9% more. Already, 25% of its lines are underground. This project aims to reduce wildfire risk. This project is estimated to cost about $40 billion. PG&E's CEO hopes to lower the costs to $15–20 billion. These costs will likely be passed on to the utility's 5.5 million customers. They already pay some of the highest electricity rates in the nation.
Sierra Blaze
On June 19, 1997, a jury in Nevada City found PG&E responsible. They said PG&E had a pattern of not trimming trees near its power lines. This caused a large wildfire in the Sierra in 1994. PG&E was found responsible for 739 counts related to not trimming trees. This was a very large finding against the company.
San Bruno Pipeline Explosion
On September 9, 2010, a suburb of San Francisco, San Bruno, California, was damaged. One of PG&E's natural-gas pipelines exploded. The pipeline was at least 54 years old. It was 30 inches wide and located under a street in a neighborhood. The explosion sent a 28-foot section of pipe flying. It killed eight people and injured nearly 60 others. About 100 homes were destroyed. The USGS said the shock wave was like a 1.1 magnitude earthquake.
After the event, PG&E was criticized. They had ignored warnings from a state inspector in 2009. They also failed to have proper safety procedures. The National Transportation Safety Board (NTSB) investigated. On August 30, 2011, the NTSB found PG&E responsible for the blast. The report said the pipeline did not meet safety standards even when it was installed in 1956.
PG&E was charged with several serious violations of pipeline safety laws. In August 2015, the California Public Utilities Commission fined PG&E $300 million. PG&E also paid $400 million to gas customers. It agreed to spend $850 million on gas-system safety improvements. It also settled over $500 million in claims from victims and their families.
Even years after the disaster, PG&E did not always follow safety rules. A 2018 report found that between 2012 and 2017, PG&E failed to mark gas pipelines on time. This was due to not having enough staff. Contractors rely on these markings to dig safely. PG&E was fined $110 million for these issues.
Butte Fire
In September 2015, the deadly Butte Fire started in Amador and Calaveras counties. It killed two people and destroyed hundreds of buildings. An investigation found PG&E responsible. A gray pine tree had touched one of their power lines.
October 2017 Northern California Wildfires
In October 2017, PG&E was found responsible for 13 separate fires. These were among the 250 fires that damaged Northern California. These fires were caused by PG&E's electric power lines, wires, and power poles. Investigations confirmed PG&E equipment started several fires. These included the Redwood Fire, Sulphur Fire, Cherokee Fire, 37 Fire, Blue Fire, Pocket Fire, Atlas Fire, Norrbom, Adobe, Partrick, Pythian and Nuns fires, and the Cascade Fire.
Ghost Ship Fire
On December 2, 2016, a fire broke out in a former warehouse in Fruitvale, Oakland, California. This building had been illegally changed into an artist space. 36 people died in the fire. A civil case was brought against PG&E. It claimed the fire was caused by an electrical problem.
In August 2020, PG&E settled a civil lawsuit for 32 of the victims. The amount of the settlement was not shared. It was limited to the amount available under PG&E's insurance for 2016.
Tubbs Fire
The Tubbs Fire was a wildfire in Northern California in October 2017. It was the most destructive wildfire in California history at the time. It burned parts of Napa, Sonoma, and Lake counties. It caused the most damage in Santa Rosa.
Initially, it was unclear if PG&E was responsible. Cal Fire's investigation in January 2019 seemed to clear the company. But on August 14, 2019, a judge overseeing PG&E's bankruptcy heard from Tubbs Fire victims. They wanted a trial to decide if PG&E was at fault. On August 16, 2019, the judge ruled that the trial could go forward.
On December 6, 2019, PG&E proposed to settle wildfire victim claims for $13.5 billion. This would cover its responsibility for the Tubbs Fire, Camp Fire, Butte Fire, and the 2017 North Bay Wildfires. The court case for the Tubbs Fire was later replaced by an agreement. In this agreement, PG&E accepted responsibility for the Tubbs Fire.
Camp Fire
In November 2018, PG&E and its parent company were sued by many victims of the Camp Fire. This was the deadliest and most destructive wildfire in California history. The Camp Fire destroyed over 18,000 buildings, including 14,000 homes. It greatly affected poorer residents. About 90% of the town of Paradise, California's population was still displaced as of June 2020. The lawsuit said PG&E failed to properly maintain its equipment.
PG&E's report to the California Public Utilities Commission pointed to a power failure on a transmission line. This happened on November 8, just before the fire was reported near the same spot. Later investigation suggested a broken hook might have caused equipment to spark the blaze.
Cal Fire and state utility regulators investigated PG&E. They wanted to see if the company followed state laws.
As a result, Pacific Gas and Electric Company and PG&E Corporation filed for Chapter 11 bankruptcy on January 29. PG&E settled criminal proceedings with a fine. It admitted responsibility for starting the fire and for 84 deaths.
Civil lawsuits continued and were settled. On July 1, 2020, PG&E put $5.4 billion cash and 22.19% of its stock into the Fire Victim Trust. This covered most of its payments to wildfire victims. PG&E has two more cash payments of $1.35 billion due in January 2021 and January 2022.
Kincade Fire
The Kincade Fire was a wildfire in Sonoma County, California. It started on October 23, 2019. It burned over 77,758 acres until it was fully contained on November 6, 2019. The fire threatened many buildings and caused widespread evacuations. It was the largest fire of the 2019 California wildfire season.
Initially, it was not known if PG&E was responsible. On July 16, 2020, after PG&E left bankruptcy, Cal Fire reported that PG&E transmission lines caused the fire. Damages from this fire were not covered by the earlier settlement for wildfire victims.
Public Safety Power Shutoffs
The "2017 California wildfire season was the most destructive on record." Because of this, the CPUC supported turning off power to reduce wildfire risks. This is called a Public Safety Power Shutoff (PSPS). The first PSPS by PG&E happened on October 14, 2018. Since then, there have been more PSPS outages. In October 2019, PG&E began to shut off power to many regions. This was a safety measure to help avoid wildfires caused by electric lines.
The shutdown of nearly 25,000 miles of electric lines was expected to affect over 2 million people. Power was expected to stay off for several days after high winds stopped. This was because all shutdown lines had to be checked for wind damage. After two days, winds lessened, and PG&E restored power to some customers.
Since 2018, PG&E has increased its efforts to prevent wildfires. This includes a 24/7 threat-monitoring center. They also increased vegetation rules around utility poles. They added 100 weather stations in high-risk areas. The company's plan also includes using public service power shutdowns when needed.
Power shutoffs in California continued in 2020 and 2021. In 2021, the company announced a new strategy. It uses machine learning to predict fire spread. This helps them make more accurate PSPS decisions.
In 2021, California fined PG&E $106 million for not communicating well during 2019 PSPS events.
Dixie Fire
On January 4, 2022, CalFire determined that the Dixie Fire was caused by a tree. The tree contacted electrical distribution lines owned by PG&E. These lines were located west of Cresta Dam. CalFire sent its investigation report to the Butte County District Attorney's office. This is the same office that handled PG&E's case after the 2018 Camp Fire.
Zogg Fire
The Zogg Fire burned over 56,338 acres in southwestern Shasta County and northwestern Tehama County. This was part of the severe 2020 California wildfire season. The fire started on September 27, 2020. It was fully contained on October 13, 2020. It destroyed much of the communities of Igo and Ono. Four people died, and 204 buildings were destroyed.
In March 2021, investigations concluded the fire began when a grey pine tree fell on PG&E power lines. The tree had been identified for removal. However, it had not been removed after the Carr Fire in 2018.
South San Joaquin Irrigation District (SSJID)
In 2009, the California Public Utilities Commission (CPUC) approved a plan. This plan allowed the South San Joaquin Irrigation District to buy PG&E's electric facilities. These were in Manteca, Ripon, and Escalon. In March 2016, a judge rejected PG&E's claims. PG&E had argued that the South San Joaquin Irrigation District did not have enough money to provide electricity. A review found that SSJID's customer rates would be 15 percent lower than PG&E's rates.
Images for kids
-
PG&E Corporation logo
