PG&E Corp.’s equipment was responsible for causing four of the wildfires that tore through Northern California in October, investigators from the state’s Department of Forestry and Fire Protection determined in a report Friday.
The fires in Butte and Nevada counties were caused by trees or branches coming into contact with PG&E power lines, according to a statement citing results of the first investigations into the fires last year. The causes of the larger wine country fires, including the Tubbs Fire, weren’t disclosed.
The investor-owned utility owner has lost more than $12 billion in market value since the wildfires broke out. It suspended its dividend and withheld its 2018 profit guidance because of uncertainty about how much it might have to pay for damages. The fires in Napa and Sonoma counties were some of the worst in state history, destroying thousands of structures and killed 44 people.
Under California law, utilities can be held liable for costs if their equipment is found to have caused a fire -- even if they followed safety rules -- based on a legal principle known as “inverse condemnation.” PG&E Chief Executive Officer Geisha Williams has called the policy “deeply flawed.” The company, along with California’s other investor-owned utilities, has been lobbying the state’s lawmakers and regulators to change it.
California Governor Jerry Brown said in March that he will work with state leaders to develop policies this year to update wildfire liability rules and regulations for utilities. Brown has said the state is at higher risk for more severe and frequent fires due to climate change.
Insured losses claimed from the Northern California wildfires totaled $9.55 billion as of the end of January, the state insurance agency said.
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