Making it Safe and Making it Right for Our Hometowns: PG&E Reaches Agreements with Six Counties to Further Invest in Wildfire Safety for Customers

Rhea-AI Summary

Pacific Gas and Electric Company (PCG) has reached settlements concerning the 2019 Kincade Fire and the 2021 Dixie Fire, resulting in no criminal charges for the latter and dismissal of charges for the former. The agreements include $55 million in financial commitments over five years, with funds directed to local non-profits and community recovery efforts. PG&E also announced plans to hire up to 200 staff in wildfire safety roles, enhance vegetation management, and implement a five-year independent monitorship to oversee safety and inspection efforts across six Northern California counties.

Positive

• No criminal charges will be filed related to the 2021 Dixie Fire.
• A total of $55 million in financial commitments will strengthen community recovery and funding for local non-profits.
• PG&E plans to create 80-100 new jobs in Sonoma County focused on wildfire safety.

Negative

• $7.5 million civil penalty to Sonoma County and $1 million penalties to five other counties related to the fires.
• Financial commitments are significant, possibly affecting PG&E's cash reserves.

Settlement Agreements Resolve Legal Proceeding in 2019 Kincade Fire; No Charges to be Filed in 2021 Dixie Fire

OAKLAND, Calif.--(BUSINESS WIRE)-- Today, Pacific Gas and Electric Company (PG&E) and district attorneys representing six Northern California counties announced settlements resolving the 2019 Kincade Fire and 2021 Dixie Fire.

As a result of these agreements, no criminal charges will be filed in the Dixie Fire, and the criminal complaint regarding the Kincade Fire will be dismissed.

PG&E has also entered into long-term agreements with Butte, Lassen, Plumas, Shasta, Sonoma and Tehama counties to strengthen wildfire safety and response programs and to work with local organizations affected by the fires to help rebuild impacted communities.

These commitments include assistance for local non-profits, support for community colleges to expand their wildfire safety training and a direct claims program for victims of the Dixie Fire who lost their homes.

“We are committed to doing our part, and we look forward to a long partnership with these communities to make it right and make it safe,” said Patti Poppe, Chief Executive Officer of PG&E Corporation. “We respect the leadership of the local DAs, welcome the new level of transparency and accountability afforded by these agreements, and look forward to working together for the benefit of the communities we collectively serve.”

PG&E also committed to a five-year monitorship of its vegetation management and system inspection work in the six counties. The monitor will be independent of PG&E and will regularly report to the district attorneys on the company’s progress. This role will be filled by Filsinger Energy Partners, which also serves as the Independent Safety Monitor for the California Public Utilities Commission. PG&E will continue to provide the resources needed to enable the monitor to meet its commitments to the CPUC, as well as additional resources needed to focus on PG&E’s critical wildfire safety work in these six counties.

“Making this agreement required a level of trust and partnership in meeting Plumas County’s needs. PG&E’s new leadership team has demonstrated they are committed to change and will continue to work towards earning our trust. I appreciate this commitment and, to paraphrase the 40th President of the United States, look forward to verifying these efforts as provided by today’s agreement,” said Plumas County District Attorney David Hollister.

Below are highlights of the safety commitments PG&E is making:

Wildfire Safety

• Local Safety Workforce: Adding 80-100 new PG&E jobs based in Sonoma County, as well as 80-100 more positions collectively across Butte, Lassen, Plumas, Shasta and Tehama counties. These new positions will increase PG&E’s local expertise and presence focused on completing critical safety work in these communities.

• Local Inspection and Work Commitments: Executing specific safety work and inspections in the six counties as detailed in PG&E’s Wildfire Mitigation Plan including commitments to carry out vegetation management and equipment inspections, which will be reviewed and verified by the independent monitor.

Local Community College Partnerships

• Fire Technology Training Program: Committing to work collaboratively with Santa Rosa Junior College (SRJC) on efforts to expand and enhance the College’s Fire Technology Program of the Public Safety Training Center, including providing funding and sharing PG&E wildfire safety know-how and learnings. The company also will provide funding to campuses in the six counties which, at the discretion of the colleges, can be used for site acquisition and development, equipment purchases, and developing and implementing fire technology program curriculum.

• Vegetation Management Training Program: Providing funding and assisting in the creation of new utility vegetation management training programs at SRJC and several campuses across the North Valley. These programs will be modeled after coursework that debuted at Butte College in 2020.

Direct Payment Program to Accelerate Community Recovery

• PG&E will launch a new Direct Payments for Community Recovery program with an online tool where individuals whose homes were destroyed by the Dixie Fire can submit claims for expedited review, approval and payment. PG&E will verify the claims and make offers based on an objective, pre-determined calculation. Claimants who accept the offers will receive payment, typically within 30 days of accepting an offer and within 75 days of first submitting a complete claim. PG&E has also agreed to provide in-person and telephone customer support centers to navigate this new program.

Payments to Local Non-Profit Organizations

• As part of PG&E’s commitment to work with local organizations and communities, most of the money that PG&E will pay as part of these settlements – over $35 million – will go to local non-profit organizations, including Fire Safe Councils, volunteer fire departments, local schools and community groups such as Rotary Clubs, Chambers of Commerce and organizations serving veterans and the homeless.

In addition to the above commitments, PG&E will pay a $7.5 million civil penalty to Sonoma County related to the Kincade Fire and a $1 million civil penalty to each of the five North Valley counties related to the Dixie Fire. The financial commitments within the two stipulated agreements total $55 million over five years, and PG&E will not seek recovery of these costs from customers.

PG&E’s wildfire safety commitments across its service area are outlined in its 2022 Wildfire Mitigation Plan, which PG&E submitted to the California Public Utilities Commission on February 25, 2022. More information about this plan, and PG&E’s work to reduce the risk of catastrophic wildfire, is available here.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.

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Source: Pacific Gas and Electric Company

FAQ

What are the outcomes of the PG&E legal settlements regarding the Kincade and Dixie Fires?

PG&E reached settlements that resulted in no criminal charges for the Dixie Fire and dismissal of charges for the Kincade Fire.

How much is PG&E committing to community recovery efforts following the fires?

PG&E is committing $55 million over five years to support local non-profits and community recovery initiatives.

What new jobs is PG&E creating for wildfire safety?

PG&E plans to create 80-100 new jobs focused on wildfire safety in Sonoma County and surrounding regions.

What are PG&E's penalties related to the Kincade and Dixie Fire settlements?

PG&E will pay a $7.5 million civil penalty to Sonoma County and $1 million each to five other counties as part of the settlements.