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This is a mischaracterization of the liability of PG&E for those fires. All of the PG&E-caused wildfires were due to inadequately maintained equipment operating
by linkregister 1y ago
This is a mischaracterization of the liability of PG&E for those fires. All of the PG&E-caused wildfires were due to inadequately maintained equipment operating well beyond its service life. The reduction of maintenance budgets to improve free cash flow and return capital to investors was a conscious decision by the company officers [1].
As you stated, PG&E was held liable for billions of dollars of compensation for the impacted people. This led to negative earnings zeroing out the profits of the previous decade [2]. Furthermore, the stock's price is far lower than it was during the hayday of deferred maintenance.
Since the involvement of California state government in PG&E operations, maintenance has improved dramatically. Furthermore, PG&E again has positive earnings, demonstrating that the long-term viability of the company is improved with adequate maintenance budgeting.
Now to address the counterfactual, "the fires would have happened anyway": no. The leading cause of wildfires in California in general, and impacting people and infrastructure in particular, is electrical equipment. This is empirical; after PG&E began cutting power during high-fire danger days, the number and severity of wildfires dropped dramatically [3].
1. How PG&E missed its chance to prevent the Camp Fire: Damning report on utility’s negligence, https://www.sacbee.com/news/california/fires/article243571222.html https://www.sacbee.com/news/california/fires/article24357122...
2. Pacific Gas & Electric EPS - Earnings per Share 2011-2025 | PCG, https://www.macrotrends.net/stocks/charts/PCG/pacific-gas-electric/eps-earnings-per-share-diluted https://www.macrotrends.net/stocks/charts/PCG/pacific-gas-el...
3. Human-caused ignitions spark California’s worst wildfires but get little state focus: In 2019, utilities turned off electricity during high-wind events, and California had its mildest fire season in eight years. Was that a coincidence?, https://www.sandiegouniontribune.com/2020/01/05/human-caused-ignitions-spark-californias-worst-wildfires-but-get-little-state-focus/ https://www.sandiegouniontribune.com/2020/01/05/human-caused...
- AnthonyMouse 1y ago> All of the PG&E-caused wildfires were due to inadequately maintained equipment operating well beyond its service life. That sounds like something lawyers say when they want to sue somebody. Who determines the "service life" of a conductive piece of metal with no moving parts? > Now to address the counterfactual, "the fires would have happened anyway": no. The leading cause of wildfires in California in general, and impacting people and infrastructure in particular, is electrical equipment. This is empirical; after PG&E began cutting power during high-fire danger days, the number and severity of wildfires dropped dramatically Nobody disputes that power lines can be an ignition source. The issue is that there are also other ignition sources and dead trees will eventually burn. Causing the fires to be less frequent actually makes the problem worse, because then when it does happen there is even more fuel, which makes the next fire bigger and harder to contain. It's the same failure mode as putting out natural wildfires and leaving all that fuel to accumulate for next time. Removing some of the ignition sources means you're going to have fewer small fires this year, but at the cost of having bigger ones later. That's not a win.
- labcomputer 1y ago> Who determines the "service life" of a conductive piece of metal with no moving parts? Perhaps you might start by explaining how that question is in any way relevant to the current discussion. The part that was found to have failed was a wire hanger that wore through as it swung in the wind (hint: a moving part) and allowed the power line to fall on the ground. Somehow (magic or the occult probably) SC Edison and LADWP have not had failures of their physical plant which bankrupted the company. They also had higher maintenance budgets. Hmmm… nope, can’t see how these things are connected.
- gregable 1y ago> Who determines the "service life" of a conductive piece of metal with no moving parts? I think they move from the wind and eventually wear through. https://www.nbcbayarea.com/investigations/new-images-of-pge-hooks-on-camp-fire-power-line-released/2190709/ https://www.nbcbayarea.com/investigations/new-images-of-pge-...
- linkregister 1y ago> The issue is that there are also other ignition sources and dead trees will eventually burn. Please read citation number three from the parent post. This is not a certainty. Calfire and local agencies do a substantial amount of brush clearing, tree cutting, and when conditions are right, controlled burns. Anything that reduces the frequency of ignition events buys more time for fire control agencies to do this work.
- AnthonyMouse 1y ago> Please read citation number three from the parent post. This is not a certainty. The link is essentially arguing that there are some areas with very few natural ignition sources, so most of the fires are caused by people. But that doesn't get you out of the accumulation of fuel. Even if zero of the fires were caused by power lines or nature, there would still be car fires and campfires etc., and longer durations between them causes larger accumulations of fuel. > Calfire and local agencies do a substantial amount of brush clearing, tree cutting, and when conditions are right, controlled burns. Anything that reduces the frequency of ignition events buys more time for fire control agencies to do this work. This isn't a case of there being a fixed amount of brush that only has to be cleared out this once and we need to buy some time to allow the work to be completed. It's a continuous process and they don't have the resources to do it everywhere. If you then prevent more of the "unscheduled" fires in the places where they can't and then more fuel accumulates there, what happens?