PG&E says wildfire liability costs are putting pressure on its finances while consumer advocates accuse the utility of using that pressure to push lawmakers to change the law.
The utility announced last week it would defer two billion dollars in planned spending next year after lawmakers rejected a proposal that would have reduced PG&E’s wildfire liability costs.
"It’s bailout blackmail," said former California Public Utilities Commission President Loretta Lynch in a Consumer Watchdog alert that the company is trying to use that spending as leverage.
"PG&E is trying to browbeat California policymakers into giving PG&E a get out of jail free card for its own liability," added Lynch.
PG&E says wildfire resilience costs have been disproportionately placed on utility companies, which can ultimately drive up costs for customers.
Here’s Tyson Smith with PG&E during a Senate Energy Committee hearing in May:
"A financially distressed utility can’t invest in safer operations, clean energy and create resilience," said Smith. "And its higher borrowing costs flow directly to customers."
That’s despite PG&E reporting more than two billion dollars in profits in both 2023 and 2024.
Lawmakers could convene a special session in the coming weeks to try to find another solution.