PG&E

Regulators Seek $155 Million PG&E Fine Over Zogg Fire

Go Nakamura/Bloomberg via Getty Images Firefighters work to prevent the fire from spreading during the Zogg fire near the town of Igo in Shasta County, California, U.S., on Sunday, Sept. 27, 2020.

State regulators are seeking a $155 million fine against PG&E for its alleged failure to cut down a tree that had been flagged for removal well before the deadly Zogg Fire back in 2020.

The company -- currently charged with 31 criminal counts by Shasta County prosecutors – has denied any wrongdoing connected to the start of the fire. PG&E says although two trees were flagged for removal two years before the fire that left four dead, it can’t say either of those trees was to blame for the fire.

It told regulators it would have expected that a tree marked for removal would have been marked with spray paint, and the area had been twice checked by crews who found nothing wrong in the months leading up the fire.

In seeking the fine, regulators now say that despite “PG&E’s poor recordkeeping,” they can determine “with a high degree of certainty” the damaged pine tree that Cal Fire has pinpointed as sparking the fire was indeed one of two grey pines a PG&E crew had flagged for removal back in 2018. One key factor, regulators said, was that its review of aerial photos showed no other grey pines in the area than the two that had been flagged for removal.

Regulators separately cited the utility for not doing a power pole inspection in the area of the fire, failing to conduct patrols that could have spotted the at-risk tree and failing to keep a map of trees that could pose a risk to its lines in the area.

Regulators cited what they consider “egregious conduct” by PG&E, noting that its failure to remove the two flagged trees stemmed from “a combination of poor recordkeeping, poor communication, and lack of caution.”

It noted an arborist report found the tree posed a clear risk of falling, and concluded that, in of itself,  “demonstrates a high degree of culpability in PG&E’s conduct.”

“PG&E’s failure to take reasonable action to correct or prevent the violations contributing to the Zogg Fire, given PG&E’s prior history of similar violations, warrants the maximum daily penalty,” regulators concluded, adding: that the company “chose to engage in conduct that disregarded warnings and placed the public in danger.”

PG&E said in statement that it’s committed to rebuilding the areas hit by the fire and has already resolved civil claims with the county and many fire victims in an “effort to make it right.”

The company said it is reviewing the allegations, but “we believe any potential financial penalties should be directed for the benefit of our customers, and to keeping our hometowns safe.”

“Today, PG&E is a different company with a new leadership team under Patti Poppe, who became CEO in January 2021,” adding that it has taken “significant actions to reduce wildfire risk” including shutting down equipment at the first sign of trouble, wind-triggered power shutoffs, as well as system hardening efforts, inspections and vegetation management upgrades.

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