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‘I Apologize for the Hardship,’ PG&E Chief Says of Blackout ‘This Is Not Hard’: PG&E Gets an Earful Over Its Blackout
(about 3 hours later)
SAN FRANCISCO — Pacific Gas & Electric presided over a blackout. Now it is under the spotlight. SAN FRANCISCO — Executives of California’s largest power company received withering criticism from state regulators Friday over a pre-emptive blackout that left millions without power, some for days.
Sitting before the five-member panel that regulates California’s utilities, the company’s chief executive on Friday defended the decision to cut power to millions of people last week to prevent wildfires, even as he acknowledged failures in use of the strategy. The company, Pacific Gas & Electric, was rebuked at an emergency meeting convened by the state’s Public Utilities Commission to examine how decisions were made and carried out in last week’s power shut-off.
“We do not like to turn off the power,” the executive, Bill Johnson, told the Public Utilities Commission at a hearing in San Francisco. “It runs contrary to the reason any of us got into this business.” PG&E acted after weather forecasts pointed to a severe fire risk across much of its territory because of hot, dry conditions and high winds. Its equipment has repeatedly been blamed for deadly wildfires, leaving it facing liability claims that have helped put it into bankruptcy.
Marybel Batjer, the commission president, scheduled the emergency hearing to call PG&E’s top officials to account for their actions in the blackout. Whatever the company’s good intentions, the regulators left no doubt on Friday that the execution of the blackout — the largest such operation in the state’s history — was unacceptable.
“My specific goal of this meeting is to make sure that any future power shut-off event is never like the one last week,” Ms. Batjer said in opening the hearing. “I was absolutely astounded.” Marybel Batjer, president of the five-member commission, said she was “astonished” at PG&E’s lack of modern technology and services, citing the website crashes and communication system failures that added to last week’s upheaval.
Mr. Johnson told the commission that he looked forward to a future where there is no need for power shut-offs to prevent wildfires, but that it would most likely take a decade to reach that point. “This is not hard,” she told PG&E executives. “You guys have failed on so many levels on pretty simple stuff. You need to get there now. Not at the end of the year. Now.”
Bill Johnson, the company’s chief executive, defended the decision to cut off electricity, even as he acknowledged failures in PG&E’s use of the strategy. He told the commission that he looked forward to a future in which the company no longer needed power shut-offs to prevent wildfires, but said it would most likely take a decade to reach that point.
“We, I, acknowledge these critical errors,” he said. “I apologize for the hardship.”“We, I, acknowledge these critical errors,” he said. “I apologize for the hardship.”
The power shut-offs left two million people in the dark, many without notice and for days. They also forced businesses and schools to close and endangered people with life-threatening health conditions. Many customers lost power without notice. The power shut-offs also forced businesses and schools to close and endangered people with life-threatening health conditions.
In a letter to the commission on Thursday night, Mr. Johnson acknowledged that the utility had done a poor job in executing the blackout, even if its intentions — pre-empting wildfires caused by its equipment — were sound. The hearing, which lasted four and a half hours, provided the fullest look yet at how PG&E came to make the unusually broad move, and who was responsible.
“We understand that the size and scope of this event is untenable in the long term,” Mr. Johnson said in the letter. “Events such as these cannot become the status quo in California.” Michael Lewis, PG&E’s senior vice president for electrical operations, told the commission that workers in the field had simply carried out his order. “They didn’t make the decision,” Mr. Lewis said. “I did.”
[“This did not go well”: Inside PG&E’s control room during the blackout.] But, company officials said, they have been working to correct their failures. They reported an upgrade to the website that repeatedly crashed during the blackout, preventing customers and local governments from getting information.
In his letter, Mr. Johnson, who came to PG&E in May, promised to deliver on improvements he was hired to make. “PG&E remains committed to bettering its practices and system,” he wrote. They also said that the utility was stepping up inspections and upgrading its power lines, and that it would ensure that customers had better access to assistance centers in future power shut-offs.
PG&E, in bankruptcy after amassing tens of billions of dollars in liabilities related to recent wildfires caused by its equipment, has become known for its system failures that include a gas pipeline explosion that killed eight people and last year’s Camp Fire, which destroyed the town of Paradise and killed scores more. Mr. Johnson said alternative ways of delivering electricity needed more consideration to avoid such episodes and to deal with the growing impact of climate change. Microgrids, which generate power for a concentrated area and can be shut on and off independently, are one possibility, he said.
Last week, the trouble was the faltering of PG&E’s communication and computer systems, in particular the utility’s website, which crashed twice as the lights went out. “No one ever wants to see anything like that again,” Mr. Johnson said of the power shut-offs. “There is commentary out there that we can’t be trusted to do this. I’m really looking for the best answer here for the public.”
Gov. Gavin Newsom told the commission this week that he intended to urge Mr. Johnson to give consumers an automatic credit or rebate of $100 for residential customers and $250 for small businesses. Mr. Newsom said PG&E’s use of the power shut-off strategy highlighted how disorganized the utility remains after numerous complaints, court cases and regulatory issues. Before last week’s shut-offs, PG&E had used the strategy for about 100,000 customers in separate events.
“We need to get better at doing it,” said Andrew Vesey, who oversees the company’s utility subsidiary and its operations. “The buck stops with me.”
Ms. Batjer said the commission expected PG&E to submit a detailed report about the power shut-offs within the next few days. “I really do believe that we all will be judged by the outcomes, not the plans,” she said.
State Senator Jerry Hill, a Bay Area Democrat who has been a frequent critic of PG&E, issued a statement saying the company was “attempting belatedly to rebuild their support services” to protect customers.
“It would have been better for PG&E leaders to detail exactly why it’s going to take them 10 years to build the resilient electrical system we should already have, so that power shutdowns are truly a rare, last resort,” he said.
PG&E, in bankruptcy since January with tens of billions of dollars in liabilities related to wildfires caused by its equipment, has become known for system failures. These include a gas pipeline explosion that killed eight people and last year’s Camp Fire, which destroyed the town of Paradise and killed 86 people.
Gov. Gavin Newsom said this week that PG&E’s use of the power shut-off strategy highlighted how disorganized the utility remained after numerous complaints, court cases and regulatory issues.
“The scope and duration of this outage was unacceptable,” Mr. Newsom said. “It was clear from the start that PG&E implemented this extraordinary measure with astounding neglect and lack of preparation.”“The scope and duration of this outage was unacceptable,” Mr. Newsom said. “It was clear from the start that PG&E implemented this extraordinary measure with astounding neglect and lack of preparation.”
The governor called on the commission to conduct a comprehensive review of the event, including failures in planning, decision making and execution. The governor called on the commission to conduct a comprehensive review of the event, including failures in planning, decision making and execution. And he said he intended to urge Mr. Johnson to give consumers an automatic credit or rebate of $100 for residential customers and $250 for small businesses to compensate them for the blackouts.
In addition to its scrutiny of PG&E, the commission has informed the state’s two other investor-owned utilities, Southern California Edison and San Diego Gas & Electric, to review the orders given to PG&E regarding last week’s power shut-offs to ensure that “there is not a repeat of any of last week’s mistakes in any part of the state in the future.” Mr. Johnson said after Friday’s hearing that the company would consider the request, but that it was concerned about setting a precedent.
In addition to its scrutiny of PG&E, the commission has informed the state’s two other investor-owned utilities, Southern California Edison and San Diego Gas & Electric, to review the orders given to PG&E regarding power shut-offs to ensure that “there is not a repeat of any of last week’s mistakes in any part of the state in the future.”
A new look at PG&E’s operations would add to a lengthy list of reviews and investigations past and present.A new look at PG&E’s operations would add to a lengthy list of reviews and investigations past and present.
From its fatal safety errors in its electric and gas pipeline business to criminal misdeeds that have led to felony convictions and the utility’s current bankruptcy case, PG&E has been the subject of extensive hand-wringing across California.From its fatal safety errors in its electric and gas pipeline business to criminal misdeeds that have led to felony convictions and the utility’s current bankruptcy case, PG&E has been the subject of extensive hand-wringing across California.
Mr. Newsom has suggested that serious consideration be given to breaking up PG&E, the state’s largest utility company, which serves 16 million customers through its electricity and natural gas operations.Mr. Newsom has suggested that serious consideration be given to breaking up PG&E, the state’s largest utility company, which serves 16 million customers through its electricity and natural gas operations.
Much of the company’s future rests in the federal courts, which are overseeing its bankruptcy and some of its criminal proceedings, and are reviewing years of the utility’s actions and its finances.Much of the company’s future rests in the federal courts, which are overseeing its bankruptcy and some of its criminal proceedings, and are reviewing years of the utility’s actions and its finances.
PG&E is fighting to emerge from bankruptcy a stronger company but continues to make missteps. Chief among the concerns have been the utility’s wildfire safety program and the handling of victims’ claims after things have gone wrong.PG&E is fighting to emerge from bankruptcy a stronger company but continues to make missteps. Chief among the concerns have been the utility’s wildfire safety program and the handling of victims’ claims after things have gone wrong.
Tens of thousands of wildfire victims have until Monday to file claims related to two dozen wildfires caused by PG&E’s equipment, or risk losing out on any potential compensation from the utility. That includes the Camp Fire, the most devastating wildfire in California history, suspected of having been caused by a 100-year-old transmission tower that was a quarter-century past its “useful life” by PG&E’s own standards.Tens of thousands of wildfire victims have until Monday to file claims related to two dozen wildfires caused by PG&E’s equipment, or risk losing out on any potential compensation from the utility. That includes the Camp Fire, the most devastating wildfire in California history, suspected of having been caused by a 100-year-old transmission tower that was a quarter-century past its “useful life” by PG&E’s own standards.
Mr. Johnson and his embattled utility argue that improvements are being made, particularly concerning wildfire prevention. PG&E has been carrying out a series of safety measures, modeled after methods pioneered by San Diego Gas & Electric. But some efforts have been stymied by a lack of resources, including a shortage of tree trimmers to clear vegetation around the company’s power lines.Mr. Johnson and his embattled utility argue that improvements are being made, particularly concerning wildfire prevention. PG&E has been carrying out a series of safety measures, modeled after methods pioneered by San Diego Gas & Electric. But some efforts have been stymied by a lack of resources, including a shortage of tree trimmers to clear vegetation around the company’s power lines.
And after the troubles with the power shut-off, there were renewed calls from homeowners, regulators and the governor for a fundamental review of PG&E’s operations, including its possible breakup. And after the troubles with the power shut-off, there were renewed calls from homeowners, regulators and the governor for a fundamental review of PG&E’s operations.
Mr. Johnson said in his letter to the utilities commission that the company needed to improve its flow of information to customers as well as its website, which “was a major area of frustration during this event.” He added that the utility was reaching out to communities affected by the power shut-offs, with listening sessions that included county agencies. Consumer groups like The Utility Reform Network, known as TURN, want the courts to take more control of PG&E’s operations. They argue that the recurring troubles show that despite all of Mr. Johnson’s pronouncements, the utility never seems to make significant changes to run a safe and reliable electric system.
In addition, he said, PG&E has been conducting a detailed review of its actions and is working to enhance information-sharing technology and improve coordination with relevant agencies, notification procedures and operation of its community resource centers. “TURN is renewing our call for the judge in PG&E’s criminal case to put the company in receivership, and to ban PG&E from lobbying and making political contributions,” Mark Toney, TURN’s executive director, said in a statement before the Friday hearing. “It has never been clearer that the managers of PG&E are not to be trusted.”
“We recognize the hardship that the recent P.S.P.S. event caused for millions of people and want to continue working with all key stakeholders to lessen this burden going forward,” Mr. Johnson said in his letter. “At the same time, we ask our customers, their families, and our local and state leaders to keep in mind the statistic that matters the most: There were no catastrophic wildfires.”
But consumer groups like The Utility Reform Network, known as TURN, want the courts to take more control of PG&E’s operations, arguing that the recurring troubles at the company show that despite all of Mr. Johnson’s pronouncements, the utility never seems to make significant changes to run a safe and reliable electric system.
“TURN is renewing our call for the judge in PG&E’s criminal case to put the company in receivership, and to ban PG&E from lobbying and making political contributions,” Mark Toney, TURN’s executive director, said in a statement ahead of the Friday hearing. “It has never been clearer that the managers of PG&E are not to be trusted.”