The California Public Utilities Commission (CPUC) is now accepting public comments regarding a proposed settlement with Pacific Gas and Electric Co. (PG&E), which could result in a $22 million penalty for the Mosquito Fire that occurred in 2022 in Placer County.
This fire caused extensive damage, burning more than 75,000 acres and destroying numerous buildings. An investigation carried out by the CPUC revealed that PG&E violated state regulations concerning the design, construction, and maintenance of their overhead electrical lines.
In their announcement, the CPUC explained that the proposed settlement holds PG&E accountable and mandates a thorough review of their Centralized Inspection Review Team’s procedures, funded by the company’s shareholders.
The formal agreement, known as an administrative consent order, stipulates that PG&E will pay $21 million into the state’s general fund and an additional $1 million for an independent review of their transmission inspection processes.
The commission is set to vote on this settlement at their upcoming meeting on August 13.
Wildfire expenses have significantly impacted PG&E’s financial situation, as noted in their regulatory filings. In a recent quarterly report, PG&E detailed the costs of previous wildfires, estimating $1.3 billion for the 2019 Kincade fire, $2.2 billion for the 2021 Dixie fire, and $400 million for the Mosquito fire, not accounting for all potential damages.
On July 23, PG&E executives will discuss the company’s second-quarter results during an investor call.