The California Public Utilities Commission (CPUC) has proposed a $45 million penalty against PG&E Corporation (NYSE:PCG) for the 2021 Dixie Fire. The fire, which was caused by a decaying tree falling onto PG&E's power lines near Cresta Dam along the Feather River, resulted in the destruction of over 963,000 acres and more than 1,300 structures across five Northern California counties. The fate of this proposal will be determined at the CPUC’s meeting scheduled for November 16, 2023.
PG&E accepted Cal Fire's findings in January 2022 that their equipment was responsible for the fire. However, they have maintained that they did not knowingly ignore risks. This acknowledgment came in a statement to the Bay Area News Group on Tuesday.
The CPUC's proposed penalty is in line with its November 2020 Enforcement Policy. It directs PG&E to pay $2.5 million to the California General Fund, $2.5 million to affected tribes, and allocate $40 million for digitizing records. This penalty follows previous fines imposed on PG&E for the Zogg, Easy, and Kincade Fires.
In addition to facing penalties from the CPUC, PG&E is also dealing with a class-action lawsuit initiated by Northern California residents impacted by the Dixie Fire. The suit has been filed in San Francisco Superior Court.
Despite these ongoing legal issues, PG&E's shares experienced a slight increase in Monday's trading session.
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