PG&E Responds to California Public Utilities Commission’s Draft Resolution to Implement Enhanced Regulatory Oversight
February 25 2021 - 9:31PM
Business Wire
Commission Issues Additional Draft Resolution
Ratifying PG&E’s Current Safety Certificate
Pacific Gas and Electric Company (PG&E) today issued the
following statement in response to a draft resolution released by
the California Public Utilities Commission (CPUC):
Today, the CPUC issued a draft resolution proposing to place
PG&E into step one of the Enhanced Oversight and Enforcement
program established last year in its approval of our Chapter 11
Plan of Reorganization. The CPUC cited shortcomings in our 2020
Enhanced Vegetation Management, which is part of our comprehensive
Community Wildfire Safety Program. The first step directs us to
submit a corrective action plan and progress reports to the
CPUC.
The findings received today are consistent with concerns raised
in prior reports from the CPUC and our Federal Monitor about our
Enhanced Vegetation Management program. We continue to take this
feedback seriously. We have already implemented improvements to
this program and will continue to do so as outlined in our 2021
Wildfire Mitigation Plan (WMP).
We will promptly prepare the corrective action plan to address
the issues in the draft resolution, with clear timelines and
commitments. We are committed to this critical work, and we welcome
continued feedback and oversight from the CPUC and other
stakeholders as we continue to learn, adapt and strengthen our
system for the long term.
PG&E shares the CPUC’s focus on safety and recognizes that
we must take a leading role in reducing the risk of wildfires
throughout our service area. We understand that the most important
responsibility that we have as a company and as individuals is to
keep our customers, communities and our workforce safe. That is our
focus every day, we know we have more to do, and we are committed
to doing it the right way.
Enhancements Already in Progress That Address Issues
Identified by CPUC
We will continue to meet with the CPUC’s Wildfire Safety
Division on a consistent basis to provide updates on our progress
in vegetation management improvements, as we have done since last
fall.
Since receiving feedback last fall from the CPUC and our Federal
Monitor regarding our Enhanced Vegetation Management program, we
took immediate action to improve. Those improvements—many of which
we believe address the issues raised in today’s draft resolution
from the Commission—are reflected in our 2021 WMP.
For example, we have already implemented the following:
- Enhanced Wildfire Risk Model Using Machine Learning
Capabilities: Our new Wildfire Risk Model consists of
significant improvements from our prior model and leverages
predictive analysis of environmental conditions that have the
potential to turn a small fire into a major wildfire. We’ve
developed and implemented machine learning capabilities, enabling
an evolution from static to dynamic risk models. Additionally,
we’re using state-of-the-art remote sensing capabilities to obtain
an understanding of both the fuel type and conditions that
contribute to fire spread in our high fire risk areas. These
enhancements will help us target and prioritize our work to address
the highest wildfire risk areas.
- Evolved from Activity-Based Program Measures to Risk-Focused
Program: Our 2020 WMP was primarily activity-based, focused on
miles of lines completed for our key wildfire safety measures, such
as Enhanced Vegetation Management and System Hardening. We have
moved to a 2021 WMP that is risk-focused, addressing the highest
risk areas for mitigation as our top priority, informed by our
enhanced predictive wildfire risk models.
- Elevated Transparency and Oversight: Our newly formed
Wildfire Risk Governance Steering Committee—which is chaired by our
Chief Risk Officer, Sumeet Singh, and includes leaders from
Electric Operations, Risk and Internal Audit, and other teams, as
well as representatives from our Federal Monitor and Governor’s
Office as independent observers—is responsible for approving the
selection of Enhanced Vegetation Management work locations and
monitoring regular reporting of work completed to ensure actual
work is aligned with the planned risk reduction and performed with
the highest level of quality.
In addition, we are working to implement the following:
- Enhancing Multi-Layer Work Verification: For 2021, we
are adding more than 200 work verification inspectors—nearly
tripling that workforce—performing post-tree work inspections on
work performed in High Fire-Threat Districts (HFTDs) for both
enhanced and routine vegetation management programs—resulting in
the verification of 100% of vegetation management work performed in
HFTDs. We are also implementing use of Ground-Based LiDAR with
vehicles as a post-inspection review of completed circuits for
vegetation management work. Additionally, we have staffed a
centralized team of arborists to investigate any concerns or
findings raised by the CPUC, Federal Monitor, Operational Observer
or any of our external stakeholders to ensure timely follow-up and
resolution of identified issues.
- Accelerating Execution Through Lean Operating System: We
are implementing a more effective operating structure that
establishes daily operating reviews to improve visibility into all
facets of our performance, including safety, quality and work
completion for our wildfire risk reduction programs. The Lean
Operating System will facilitate rapid response and
problem-solving—at both the regional and functional levels—and help
accelerate our 2021 WMP implementation in a standardized,
coordinated way across PG&E.
Enhanced Vegetation Management Program Underway Since
2019
Through our Enhanced Vegetation Management program, we inspect
all of our approximately 100,000 miles of overhead electric assets
at least annually to identify and clear vegetation that might grow
or fall into utility equipment. Our enhanced program inspected and
trimmed or removed vegetation on or near more than 4,300 line-miles
of distribution lines within HFTDs between 2019 and 2020. In 2021,
PG&E will conduct enhanced vegetation management on at least
another 1,800 miles of distribution lines as part of our ongoing
and multi-year effort to reduce the risk of vegetation contacting
our powerlines in our highest risk areas.
Enhanced Oversight and Enforcement Process
The CPUC established this regulatory process as part of its
approval of PG&E’s Chapter 11 Plan of Reorganization. This
framework was designed to help ensure that we meet our safety and
operational commitments, and to help us correct any issues promptly
if they arise. It includes six escalating steps, triggered by
specific events, and provides that if PG&E takes appropriate
corrective action, the CPUC will move PG&E to a lower step or
out of the process.
PG&E will respond to the CPUC’s draft resolution within 20
days. The Commission will then vote on the resolution.
We welcome the CPUC’s oversight and expertise as we work
collectively to protect our customers, communities, and state from
wildfire threats and climate change.
PG&E’s Safety Certification
As noted by the CPUC, the Enhanced Oversight and Enforcement
process does not affect PG&E’s receipt of a Safety
Certification, which the CPUC’s Wildfire Safety Division issued on
January 14, 2021. Separately today, the CPUC issued a resolution
that would ratify the Safety Certification, if approved at the
CPUC’s April 15 meeting.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation (NYSE:PCG), is a combined natural gas and electric
utility serving more than 16 million people across 70,000 square
miles in Northern and Central California. For more information,
visit www.pge.com and www.pge.com/news.
Forward-Looking Statement
This press release contains forward-looking statements that are
not historical facts, including statements about the beliefs,
expectations, estimates, future plans and strategies of PG&E,
including but not limited to statements regarding the enhanced
oversight and enforcement process, the 2021 WMP, vegetation
management work verification, and lean operating system. These
statements are based on current expectations and assumptions, which
management believes are reasonable, and on information currently
available to management, but are necessarily subject to various
risks and uncertainties. In addition to the risk that these
assumptions prove to be inaccurate, factors that could cause actual
results to differ materially from those contemplated by the
forward-looking statements include factors disclosed in PG&E
Corporation’s and PG&E’s joint annual report on Form 10-K for
the year ended December 31, 2020, and other reports filed with the
SEC, which are available on PG&E Corporation’s website at
www.pgecorp.com and on the SEC website at www.sec.gov. PG&E
Corporation and PG&E undertake no obligation to publicly update
or revise any forward-looking statements, whether due to new
information, future events or otherwise, except to the extent
required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225006328/en/
Media Relations 415.973.5930
PG&E (NYSE:PCG)
Historical Stock Chart
From Mar 2024 to Apr 2024
PG&E (NYSE:PCG)
Historical Stock Chart
From Apr 2023 to Apr 2024