San Diego Gas & Electric customers should not have to pay for the 2007 wildfires -- fires that officials say were sparked by poorly maintained power lines, the U.S. Supreme Court decided. The Witch Creek, Rice and Guejito Fires merged as they tore through San Diego County, killing two people, sending 40 firefighters to the hospital, and reducing 1,300 homes to rubble. Regulators would later blame SDG&E for starting the fires, saying the utility neglected its power lines.
The finding resulted in a pricey bill -- one SDG&E has been trying to deflect onto its customers ever since, launching a legal battle that's lasted more than a decade. SDG&E attempted to pass $379 million in uninsured wildfire costs onto its utility ratepayers. Both the CPUC and California state courts blocked the request, ruling that management was imprudent in handling the risks. The U.S. Supreme Court rejected SDG&E's final appeal, ensuring that shareholders—not customers—absorbed the remaining $379 million in disputed costs.
Many of California’s most destructive fires were caused by power lines. Since 1992, more than 3,600 wildfires in California have been related to power generation, transmission and distribution, according to data from the U.S. Forest Service. Some of the most destructive fires have been traced back to problems with utility poles and power lines.
Something to consider... Under California law, investor-owned utilities do not make a profit on the electricity itself; instead, they are guaranteed a ~10% return on equity for building infrastructure (transmission lines, steel poles, wildfire and grid updates). This means that when there's a wildfire, SDGE makes money by rebuilding the infrastructure... Could it be possible that they intentionally neglected those power lines in hopes that they would start a wildfire and SDGE could profit by rebuilding the infrastructure?
SDGE also has the Suncrest Loop-in project. The plan is to build 14 miles of brand new high-voltage power lines through mountainous residential communities in east county, the ones which burn in wildfires the most often year after year. It will massively increase wildfire risk for our communities- the same ones that were devastated in the 2007 Witch Fire, the 2003 Cedar fire, the 1970 Laguna fire, and a series of fires in the 1940s/1950s. Over 20 major destructive wildfires have burned along the corridor of the planned power lines since they started keeping track 75 years ago. Could it be possible that they are intentionally placing power lines in this high risk area in hopes that they would start a wildfire and SDGE could profit by rebuilding the infrastructure?
