Butte Rebuild

  • The Town of Paradise and surrounding areas affected by the Camp Fire will be the largest rebuilding effort in our service area since the 1906 San Francisco earthquake.
  • We created a shareholder-funded $105 million Wildfire Assistance Fund intended to aid those displaced by the 2017 Northern California wildfires and the 2018 Camp Fire, specifically those who are either uninsured or need assistance with alternative living expenses or other urgent needs.
  • PG&E has also committed to undergrounding electric distribution lines in the Town of Paradise and some other areas in the Camp Fire footprint. 
  • To date, PG&E has invested more than $100M in the electric and gas rebuild in the Paradise region.
  • Within the Camp Fire footprint, PG&E's Butte County Rebuild has (all numbers are for 2019 and 2020):
    • Completed temporary overhead miles of power lines to date: 23
    • Completed underground miles of power lines to date: 7
    • Completed 30 miles of trenching to support the underground electric project
    • New underground gas and electric services for two mobile home parks complete for a total of: 59 spaces
    • Temporary power services complete: 1,018
    • Permanent power services complete to rebuilt homes and businesses: 350
    • Hazardous trees removed: 94,000
  • We have a dedicated Rebuild Team of more than 400 employees and an officer steering committee to help us navigate and adjust resources and needs to get the job done safely and efficiently, and we are actively assisting customers with their rebuild efforts by helping them through the service planning process as it is new for many customers.
  • We are offering enhanced incentives to customers who rebuild with energy efficiency measures, adopt solar or go all-electric. In January, PG&E's Advanced Energy Rebuild initiative program was extended into 2020 for customers who obtain building permits this year to replace a home lost in a recent major wildfire like the Carr or Camp fires. Customers can receive up to $12,500 in rebuild incentives by adopting energy-efficient construction practices in homes rebuilt after a wildfire – even if the home is built elsewhere in PG&E's service area.

Key Safety Improvements

PG&E has made significant safety improvements and is continuing to invest in infrastructure and technology to mitigate the risk of wildfire in its service territory:

Enhanced inspections

  • In 2019, completed enhanced and accelerated inspections of more than 700,000 transmission, distribution and substation assets of its electric infrastructure in high fire-threat areas
  • Repaired or made safe all of the highest-priority conditions found during inspections of its transmission, distribution and substation assets

Improving situational awareness

  • Weather stations – 630 deployed as of 3/5/2020, another 400 by 9/1/2020
  • Cameras – 146 high-definition cameras deployed, another 200 by the end of 2020
  • Satellite data –NOAA satellite data being added into PG&E’s detection and alert system
  • Wildfire Safety Operations Center – upgraded center operates 24/7 to monitor fire threats

Hardening electric system and improving readiness

  • 171 line miles hardened in 2019; targeting 241 line miles in 2020
  • Undergrounding – selected, strategic undergrounding of distribution where key lengths of line serving isolated communities pass through high fire risk areas   
  • Sectionalization – installed 298 sectionalizing devices in 2019; targeting 592 in 2020.
  • System automation – continue to enable Supervisory Control and Data Acquisition (SCADA) devices and reclosers to prevent reenergization after a fault; testing Rapid Earth Fault Current Limiter (REFCL) technology to automatically reclose electrical current in a downed wire

Conducting enhanced vegetation management (EVM)

  • 2,498 line miles cleared using enhanced procedures to meet important State standards on clearances; targeting 1,800 distribution line miles in 2020 (400 completed)
  • Transmission-level inspection and VM on 5,500 line-miles in high fire threat districts (HFTDs) every year, plus other areas as needed; Distribution-level VM every year for minimum 4’ radial clearance.
  • Right-of-way expansion, particularly for 60-70 kV transmission lines, should remove more lines from PSPS risk and improve aerial inspection ability for PSPS service restoration.
  • Distribution EVM occurring over next 10 year: removal of dead and diseased trees and more aggressive trimming (12’ radius at time of trim plus overhanging branches) as feasible.

Reducing Impact of PSPS

  • Reducing scope / duration / frequency – targeting to have any 2020 PSPS events affect ~⅓ fewer customers than a comparable event would have in 2019
  • Improving restoration – additional helicopters; fixed-wing aircraft with infrared technology to allow for nighttime inspections; improving restoration goal by 50%, to 12 daylight hours
  • Community Resource Centers – activated 111 safe, energized locations for customers to receive basic resources and information in 2019; targeting 171 sites in 2020
  • Microgrids / Distributed Generation (DG) – at peak level, safely deployed approximately 41MW of backup power support to 26 critical sites across 12 counties, and safely sectionalized and energized over 4,800 customers using temporary distributed generation microgrids during 2019 PSPS events; for 2020 PSPS events, making ready dozens of substations to use temporary or existing local generation as needed during 2020 PSPS events to keep these areas energized even when the transmission sources to the substations have to be shut down. PG&E is also moving quickly to reserve additional mobile generators for use in the 2020 fire season for these substations, for other temporary microgrids, and as back-up generation for customers that are critical for societal continuity

Wildfire Victims Settlements Reached

  • PG&E has previously reached settlements with all wildfire victims' groups valued at approximately $25.5 billion, including:
    • A $1 billion settlement with cities, counties, and other public entities, of which over $500 million will go to Butte County entities;
    • An approximately $13.5 billion settlement resolving claims by individual victims relating to the 2015 Butte Fire, 2017 Northern California Wildfires (including the 2017 Tubbs Fire), and the 2018 Camp Fire; and
    • An $11 billion agreement with insurance companies and other entities that paid claims by individuals and businesses related to the wildfires.
  • PG&E has also reached agreements with the Federal Emergency Management Agency and California's Office of Emergency Services as well as other California State agencies to reduce those agencies' claims and maximize the amount of settlement funds for victims.
  • All settlements are subject to Bankruptcy Court approval and will be paid upon PG&E's emergence from Chapter 11.

Key Commitments in PG&E’s Plan of Reorganization

  • PG&E's Plan of Reorganization does not raise customer rates and in fact returns over $900M in interest savings to customers. At the same time PG&E's Plan assumes all pension obligations, other employee obligations, and collective bargaining agreements with labor unions, and all power purchase agreements and community choice aggregation servicing agreements.
  • PG&E's Plan of Reorganization for emergence from Chapter 11 also includes significant commitments designed to enhance safety, reliability and accountability.
  • PG&E most recently revised its plan in January to add a number of significant changes, including:
    • New Boards of Directors of PG&E Corporation and Pacific Gas and Electric Company, with a number of current directors leaving after the company exits Chapter 11 and new directors joining so that the Boards will have the necessary expertise and skills to oversee the company post-emergence;
      • The Board will be selected with the assistance of independent search firms and use of a director skills matrix that focuses on the qualities the company will need as it emerges
    • Developing a plan to regionalize the company's operations and its infrastructure to enhance the company's focus on local communities and customers;
    • Further strengthening PG&E's corporate governance by appointing an independent safety advisor after the term of the court-appointed Federal Monitor expires;
    • Establishing a newly expanded role of Chief Risk Officer who will report directly to the PG&E Corporation CEO and have oversight of risks associated with PG&E's operations;
    • Establishing a newly expanded role of Chief Safety Officer who will report directly to the PG&E Corporation CEO and have oversight of PG&E's strategy to further improve public and workforce safety;
    • Forming an Independent Safety Oversight Committee (ISOC) with non-PG&E employees to provide independent review of the company's operations, including safety and regulatory compliance, safety leadership, and operational performance;
    • Committing to enhanced safety metrics and stricter regulatory oversight with escalating enforcement mechanisms; and
    • Reforming executive compensation to further tie it to safety performance.

Remaining Steps to Emerge from Chapter 11

  • PG&E's Plan is on track to be confirmed by the Bankruptcy Court in advance of the June 30, 2020 statutory deadline under AB 1054 for participation in California's go-forward wildfire fund.
  • The Plan remains subject to approval by the California Public Utilities Commission and the Bankruptcy Court.
  • The Commission recently held public hearings and is anticipated to issue its determination regarding the Plan's compliance with Assembly Bill 1054 in the coming months.
  • The Bankruptcy Court is scheduled to hold a confirmation hearing on PG&E's Plan on May 27, 2020, following a vote solicitation process for relevant parties that will take place in the coming weeks.
  • The Governor has indicated his support for the Plan.