💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

PG&E says it 'strongly disagrees' delayed maintenance played role in Camp Fire

Published 07/31/2019, 05:05 PM
© Reuters. FILE PHOTO: PG&E works on power lines to repair damage caused by the Camp Fire in Paradise
PCG
-

SAN FRANCISCO (Reuters) - PG&E Corp (N:PCG) said in court papers on Wednesday that it "strongly disagrees" with a suggestion in a Wall Street Journal article that the company knowingly deferred maintenance on equipment that caused California's Camp Fire, the deadliest and most destructive wildfire in California's modern history.

PG&E filed the papers to answer an order by U.S. District Judge William Alsup demanding the power provider respond to the article, which reported PG&E did not upgrade parts of its electrical grid that it was aware could spark wildfires.

"PG&E strongly disagrees with the WSJ article's suggestion that PG&E knew of the specific maintenance conditions that caused the Camp Fire and nonetheless deferred work that would have addressed those conditions," the company said.

San Francisco-based PG&E said the article's implication that delayed planned maintenance that could have averted November's Camp Fire is based on a misunderstanding of that work on a transmission line and tower.

"The purpose of that work was not to identify and fix worn or broken parts, such as the hook on the transmission tower that failed and caused the Camp Fire to ignite," PG&E said.

"Rather, the purpose of that work was to address the clearance between transmission line conductors and from transmission line conductors to the ground," PG&E said.

PG&E also said it "denies the generalized assertion that it repeatedly failed to perform the necessary upgrades to prevent failures on its transmission lines."

A Wall Street Journal spokesman told Reuters by email the newspaper was reviewing PG&E's court papers.

Alsup on July 10 demanded PG&E give him a "fresh, forthright statement owning up to the true extent of the Wall Street Journal report" published that day.

The article reported PG&E delayed maintenance and improvements on aging power-lines and towers in recent years.

According to the article, PG&E was aware in 2017 it needed to improve maintenance and replace equipment to avoid failures causing fires following a historic drought in California.

A failure of one PG&E power line in November caused the Camp Fire, which killed more than 80 people and destroyed the town of Paradise.

© Reuters. FILE PHOTO: PG&E works on power lines to repair damage caused by the Camp Fire in Paradise

Alsup is overseeing PG&E's probation stemming from its conviction over a deadly 2010 natural gas pipeline explosion. He has been pressing PG&E for answers on its safety measures in response to massive wildfires in 2017 and 2018 that forced the company into bankruptcy in January in separate proceedings in U.S. Bankruptcy Court in San Francisco.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.