PG&E Scrutinized Over Possible Probation Violations

By Joe Dworetzky, Bay City News Foundation

BAY AREA, CA — PG&E's latest round of legal troubles got underway Tuesday in federal court in San Francisco at a hearing convened to consider whether the utility company was in violation of the terms of probation imposed following its criminal conviction in 2016.

U.S. District Court Judge William Alsup, the judge overseeing the probation, convened the hearing after Sonoma County's district attorney filed criminal charges against PG&E on April 6 on account of PG&E's role in the 2019 Kincade Fire.

That fire — allegedly started by PG&E's defective equipment on a transmission line — destroyed 174 homes and, in the words of the judge, could only be described as "catastrophic."

If Alsup determines that PG&E's conduct violated the terms of its probation, he could impose additional conditions or take other action against the company, including potentially revoking its probation.

The judge allowed Michael Aguirre, a lawyer from San Diego appearing for Alex Cannara and Gene A. Nelson, to be heard as "amici curie." Individuals who wish to be heard on issues in a case but who are not parties may ask the court for permission to file a brief or pleading as amici curie or "friends of the court." Amici participation in a case is by the grace of the judge; they have no right to be heard, but sometimes an outside perspective can help a court frame the issues.

• RELATED: PG&E Arraigned On 33 Criminal Counts In Kincade Fire, DA Says

Aguirre urged the judge to consider appointing a master or a receiver for the company, suggesting that those "behind the curtain" at PG&E would never change their behavior.

Counsel for PG&E sharply disagreed with Aquirre's remarks and said the company took fire safety "very, very seriously."

The judge scheduled a continued hearing for June 2, and said that in the meantime he would decide if amici would be allowed to formally petition the court to appoint a master or receiver.

Since the time of its initial conviction for six felonies in connection with a 2010 fatal gas explosion in San Bruno, PG&E has been under fire for its role in causing deadly and destructive wildfires.

Because a corporation cannot be imprisoned, in 2016 PG&E was sentenced to "the most severe fine possible" and the longest period of probation allowed — five years. Among the original conditions of probation was the requirement that PG&E not violate any state or federal law.

That ushered in what the judge called in an earlier order "a stunning chapter in California history."

According to his tally, since probation was first imposed, "PG&E has ignited 20 or more wildfires in California, killing at least 111 individuals, destroying at least 22,627 structures, and burning half a million acres."

In that order, the judge recounted the grim specifics: the Wine Country Fires in 2017 (22 dead, 3,256 structures destroyed); the Camp Fire in 2018 (85 dead, 18,793 structures burned); the Kincade Fire in 2019 (374 structures destroyed); and most recently the Zogg Fire in 2020 (4 dead, 204 structures destroyed).

PG&E ultimately pleaded guilty to 84 state law counts of involuntary manslaughter in connection with the Camp Fire.

That violation of probation led Alsup to add requirements relating to PG&E's fire safety efforts, principal among them enhanced requirements for tree clearing and vegetation management.

Alsup's oversight of PG&E's probation has been stormy, with the judge frequently calling out the company's history of diverting corporate funds from the safe maintenance of its infrastructure to "enlarge dividends, bonuses, and political contributions."

The upshot, the judge wrote in 2020, is that PG&E, "though the largest privately-owned utility in America, cannot safely deliver power to California."

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