Share

Fire report could complicate PG&E bankruptcy decision

Share

SACRAMENTO, Calif. (AP) — A state fire investigation’s conclusion that Pacific Gas & Electric Corp. equipment was not to blame for a 2017 wildfire that killed 22 people in Northern California wine country could hamper lawsuits by victims of the blaze and complicate the utility’s plans to file for bankruptcy.

In a long-awaited report, state investigators said Thursday the blaze that destroyed more than 5,600 structures in Sonoma and Napa counties started next to a residence and was caused by a private electrical system. The state firefighting agency did not find any violations of state law in its investigation of the Tubbs Fire.

PG&E previously said it plans to file for bankruptcy protection next week, citing at least $30 billion in potential damages over the wine country blaze and other California wildfires in 2017 and 2018, including the most destructive wildfire in the state’s history.

That blaze in November took out the city of Paradise and killed at least 86 people. The cause remains under investigation, but speculation has centered on PG&E after the utility reported power line problems nearby around the time it began.

The utility is facing hundreds of lawsuits from victims of the 2017 and 2018 fires.

Trending:
KJP Panics, Hangs Up in Middle of Interview When Reporter Shows He Isn't a Democratic Party Propagandist

Gov. Gavin Newson said it’s up to PG&E to decide whether to move ahead with bankruptcy given that more than half of its expected damages stemmed from the Tubbs Fire. The fire was one of more than 170 that torched the state in October 2017. State fire investigators have blamed PG&E power lines for some of those blazes.

Newsom said his goal is to make sure victims are made whole, that the state has “safe, reliable and affordable service,” and that ratepayers “are not paying the price of the neglect” by PG&E established in past wildfires.

Legal experts said PG&E will likely move forward with its planned bankruptcy. The company still faces billions of dollars in potential damages from other wildfires. Bankruptcy would also give it space to formulate a plan to prevent its equipment from causing more catastrophic fires in the future.

Lawsuits against the company over the wine country fire, additionally, did not appear to be going away.

“We’re going to stick by our guns,” said Michael Kelly, an attorney for victims of the fire.

There are still questions about why PG&E didn’t cut power to the area despite a high fire danger, he said. He said there is also evidence that contradicts the findings of state fire investigators.

The company hinted in a statement that it wasn’t retreating from its bankruptcy plan.

“Regardless of today’s announcement, PG&E still faces extensive litigation, significant potential liabilities and a deteriorating financial situation, which was further impaired by the recent credit agency downgrades to below investment grade,” the company said.

Some details about the property where state fire investigators say the Tubbs fire began, including its owner and address, were blacked out of the report. It said the Napa County property about 3 miles (5 kilometers) north of Calistoga was built in 1946 on about 10.5 acres (4.2 hectares) with a wine cellar, pool and several outbuildings.

Related:
Former MSNBC Host Chuck Todd Furious After Network Hires Former RNC Chair Ronna McDaniel

PG&E said in a Jan. 2 court filing that it believed a handyman performing unlicensed electrical work started the wine country fire. In that filing, it identified the owner of the Napa County compound as Ann Zink. The utility said it provided electricity to Zink’s property by a line that connected to a service riser but that Zink had a private system to carry power to other buildings as well as equipment such as a water pump and water storage tank.

PG&E said it had no responsibility to maintain or inspect the private system.

Zink, 91, told The San Francisco Chronicle in 2017 that her house was unoccupied at the time of the fire and she was at her other home in Riverside County when the blaze began.

Trading of PG&E Corp. stock was halted twice after news about the cause of the fire prompted a surge of buy orders. Once trading resumed, the price rocketed up, closing up $5.96, or nearly 75 percent, at $13.35 a share.

___

Associated Press writers Janie Har, Jocelyn Gecker, Sudhin Thanawala and Juliet Williams in San Francisco contributed to this report.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
Share
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Conversation