PG&E Update: Utility Blamed For More Fires

PG&G (PCG) is being blamed for another round of small fires that occurred this month in California. The utility’s powerlines are being blamed for the fire that burned more than 2,000 acres in Monterey County, California, as well as two other small fires in the state.

A PG&E transformer reportedly went up in flames in Marin County, California, igniting a brush fire, earlier in June. Yet, another fire was allegedly caused by PG&E wires as it burned a house and an acre of land.

While the three fires were smaller in magnitude than the California wildfires that PG&E has admitted liability for, they point to the company’s need for a more aggressive safety plan. The hot and dry weather in California may have made the fires unavoidable, but PG&E has already warned that it is behind in its safety work, Yahoo News reported.

PG&E is faced with thousands of miles of powerlines to manage, inspect, and repair along with clearing trees and brush away from these wires. The company has admitted that worker shortages are an issue to keep up with the safety work. This month alone, PG&E has addressed 1,200 critical safety threats on its grid, the news outlet reported.

“This work is happening on a scale never seen before in the industry,” Bill Johnson, PG&E CEO said at the annual shareholder meeting last week.

PG&E filed bankruptcy in January and has been working to restructure the company. Its lenders have submitted a proposal for restructuring which dedicates $18 million for its liability claims for the California wildfires its equipment played a part in. PG&E has been given until October to file its proposed restructuring plan.

Shares of PG&E stock were down 4.93 percent as of 3:36 p.m. ET on Friday.