California Commission Issues First Report of PG&E Independent Safety Monitor

The California Public Utilities Commission on Oct. 10 released the first report of its Independent Safety Monitor established to enhance supervision of Pacific Gas and Electric Company’s safety performance.

As a prerequisite of approving the company’s plan for exiting bankruptcy in May 2020, the commission required the company’s shareholders to finance an Independent Safety Monitor, in order to augment oversight and ensure that the utility is focused on long-term outcomes that promote safety and reliability. The monitor will operate for five years and issue summary statements of its actions and studies twice a year to the commission and the public.

The Independent Safety Monitor helps and enhances the commission’s continued endeavours to ensure that the utility undertakes effective risk mitigation. It evaluates PG&E’s risk management actions in the field, assesses safety operations and the efficiency of risk identification and alleviation actions. Other tasks include scrutiny of PG&E’s safety-connected reporting and record management methods to ensure that modernization attempts are informed by lessons learned from previous malfunctions and assist safe system creation, operation, and maintenance in PG&E’s electric and natural gas lines of business.

The report details observations on several topics which include: supply chain and inventories, asset age and useful life, contractor management training, core leadership training, core leadership changes, enhanced powerline safety settings criteria change, distribution inspections, variability of distribution risk ranking in model updates and gas storage observations, among other things.

The commission has taken several measures to hold PG&E liable for securely supplying its customers. These  include orders penalizing  $12 million and directing  restorative actions for inadequate implementation of 2020 Public Safety Power Shutoff events.

The commission’s supervision incorporates using its broad investigation and enforcement expertise, examining of rates and costs, pressing for development on the utility’s endeavours to lessen the risk of wildfire ignited by its equipment, guaranteeing safe execution of Public Safety Power Shutoffs, regulating the safety of the utility’s natural gas system, and ensuring the company is progressing towards updating its electric grid.