California Commission Proposes Fines for Inadequate Execution of Utilities’ 2020 Power Shutoff Events

The California Public Utilities Commission on June 15 allotted proposed orders enforcing curative actions and more than $22 million in fines to be paid by the shareholders of Pacific Gas and Electric Company (PG&E), Southern California Edison, and San Diego Gas & Electric for violations associated with their 2020 Public Safety Power Shutoff, or PSPS, events. The commission instructed the aforementioned utilities and PacifiCorp to take detailed restorative measures and actions so that forthcoming events abide by its public safety and notification obligations.

The proposed orders are pursuant to the agency’s Enforcement Policy established in November 2020 to better serve consumers through effective implementation measures that can be implemented by commission staff. This is the first time that the agency has used an administrative enforcement order. The 2020 power shutoff season comprised 26 events spread across the utilities’ service territories. Analysis conducted by the commission’s Safety and Enforcement Division revealed several violations of guidelines.

The commission has taken various actions to ensure that utilities go on to lessen the extent and duration of PSPS events and focus on customer safety. Notably, the commission ordered utilities not to collect revenues from customers associated with not receiving electricity during future shutoff events until utilities demonstrate that they have enhanced their approach to identify, evaluate, weigh, and report public harm in their process of determining the need to initiate a PSPS event.

In 2019 and during 2020, the commission demanded PG&E to employ a series of actions to amend deficiencies in 2019 PSPS events.  Moreover, in May 2020 the commission adopted changes and enhancements to existing PSPS guidelines in preparation of the 2020 wildfire season.

To name a few recent actions since 2021, the commission ordered SCE to implement a series of actions to correct inadequacies in 2020 PSPS events. Moreover, in May 2021, the agency issued a ruling imposing a penalty of $106 million on PG&E for breaching procedures during Fall 2019 PSPS events. Earlier this year, the agency undertook public meetings for the utilities to inform on their 2021 PSPS performance and analyse any key findings and learnings.

The commission continues to direct utilities to conduct several public, internal, and cooperative meetings in order to enhance their planning, organising and implementation of PSPS events.