The Official Creditors Committee Welcomes Wildfire Commission's Recommendations, Urges Immediate Action

SACRAMENTO, Calif., June 19, 2019 /PRNewswire/ -- The Commission on Catastrophic Wildfire Cost and Recovery submitted to the legislature yesterday their final recommendations for addressing increasing wildfire costs and liabilities.  

"The Official Creditors Committee welcomes the Wildfire Commission's final recommendations for mitigating costs and liabilities stemming from California's rampant wildfires. Their report moves the needle forward toward providing crucial assistance to wildfire victims, reforming California's severely flawed wildfire liability standard, and better preparing the state for future wildfires. As the current wildfire season has already begun in earnest, taking action now is crucial to the viability of the California electric system."

Two of the Commission's most notable recommendations urge (i) reform of the state's inverse condemnation doctrine – a standard that holds utilities liable for wildfires caused by their equipment even if they did not act negligently – and (ii) the creation of a wildfire fund to address the costs of recovery, compensate wildfire victims and enhance the utility's ability to access capital.

"California and Alabama are the only two states that apply this strict legal interpretation. Without a clear and reasonable standard for wildfire liability, any utility's ability to provide electricity sustainably is in question. This unreasonable standard makes it extremely difficult for utilities to secure sufficient capital and insurance coverage to conduct vital maintenance and ensure safe operations. Thus, it threatens their ability to provide safe, affordable and reliable energy supply to millions of Californians."

"A wildfire fund will enhance the ability of responsible utilities to access capital at reasonable rates, compensate wildfire victims, and better prepare the state for future wildfires. We urge California lawmakers to act with pragmatism and a sense of urgency to reform inverse condemnation and create a well-capitalized fund to address California's wildfire challenges. Lawmaker actions to address these issues will support thousands of outside parties and service providers that are critical to achieving reorganization goals, translate into lower electric rates, and enable California to meet its green energy goals."

The Creditors Committee also underscored the importance of taking a holistic approach to resolve the state's systemic problem of the unsustainable liability threatening the viability of California's utilities.

"It is critical for legislators to tackle these issues and the Commission's other recommendations collectively as they are uniquely and fundamentally interconnected. A piecemeal approach is short-sighted, ineffective and will inevitably have damaging unintended consequences for wildfire victims, ratepayers and businesses across California."

The final report comes nearly three weeks after the five-member Commission released its draft recommendations, which compiled the findings and recommendations from three workgroups and feedback from four public forums. The report also follows Governor Newsom's Strike Force Report, released in April. As summer recess swiftly approaches, legislators are facing increased pressure to enact legislation that tackles these issues, provides urgent assistance to wildfire victims, and brings certainty to the utility market.  With the wildfire season upon us, time is of the essence.

About the Official Creditors Committee
Appointed by the U.S. Trustee, the Official Creditors Committee of Pacific Gas & Electric (PG&E) represents a broad constituency of individuals and businesses seeking a fair and successful resolution to the PG&E bankruptcy case. The Creditors Committee serves as a fiduciary, working to ensure that the interests of PG&E's creditors are heard. No one creditor, special interest or group takes priority. We represent a critical constituency to both PG&E and the State of California, and are committed partners in the restructuring of PG&E.

SOURCE The Official Creditors Committee of Pacific Gas & Electric (PG&E)

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED