The November 2018 Camp Fire devastated thousands, left many without their homes and in the worst cases, without their lives.
Once responders were able to gain control of the fires, reports from Pacific Gas and Electric (PG&E) revealed that faulty power lines were likely the cause of these wildfires.
Unfortunately for the utilities company, the faulty lines were its own.
PG&E then declared bankruptcy on Jan. 29. Declaring bankruptcy gives an individual or company a fresh start. The process either clears a party of debt, or helps it create a manageable plan to repay the funds owed.
The now bankrupt utilities company has submitted its proposed 2020 General Rate Case to the California Public Utilities Commission on Dec. 13, 2018. If approved, the company would increase a typical residential customer bill by 6.4 percent or $10.57 per month.
Though the company is seeking funds that would go directly toward wildfire prevention and additional safety enhancements, it avoided claiming responsibility for any wrongdoing.
“This proposal does not request funding for potential claims resulting from the devastating 2017 and 2018 Northern California wildfires.” The General Rate Case continued, “the largest of which are still under investigation.”
“I actually didn’t know they were declaring bankruptcy,” justice studies senior Tony Arreola said. “I’m a college student living in downtown SJ where it’s already crazy expensive so this will only add on to my bills.”
Senior Public Information Representative for San Jose Clean Energy, Kate Ziemba, was quick to settle any confusion that may have arose regarding resident’s gas and electricity.
“What we’re doing is monitoring proceedings,” she said, “But there is no difference in day-to-day operation.”
San Jose Clean Energy (SJCE), a PG&E partner introduced to the public in June 2018, has since began auto-enrolling customers in their energy programs, effective Feb. 1.
The company buys energy from PG&E and offers it to consumers at rates 1% below those of the major distributor, according to their website.
As previously reported by the Spartan Daily, “SJCE would also provide residents and businesses with the option of selecting 100 percent renewable, carbon-free power.”
In a press release from San Jose City Hall in May 2017, SJCE would contract with PG&E for billing services and regular meter readings for customers.
The company will continue the predetermined contract with PG&E and has been assured it will receive no backlash from the bankruptcy, Ziemba detailed.
According to a report from the Mercury News, those contracted with PG&E will not be without power and heat, nor will they be forced to contract with separate gas and electric companies.
“I’ll be pretty mad because I’m always trying to turn off lights but the electricity bill is still high,” San Jose resident Matthew Flores said. “Now that it’s getting colder and I run my heater, my bill is gonna be really high again.”
In a Jan. 29, 2019 press release, PG&E representatives reported they are seeking approval for $5.5 billion in “debtor-in-possession financing” to support operations and ongoing safety initiatives.
This money would be put towards keeping the company up and running while they resolve their current financial issues.
In order to prevent the possibility of another disastrous fire, PG&E is replacing equipment with newer “more resilient poles and covered power lines.”
“I know that our 24,000 dedicated employees remain steadfastly focused on delivering safe and reliable natural gas and electric service for the 16 million people across our service area,” said John R. Simon, the PG&E Interim CEO.
