California regulators have issued a $1 million citation to Southern California Edison (SCE) for its involvement in the Easy Fire that occurred in October 2019 in Simi Valley.
California Public Utilities Commission (CPUC) staff said SCE violated regulations for failing to install and maintain its 66 kV conductor and insulator adequately and safely in order to prevent them from contacting the steel pole during windy conditions.
CPUC General Order 95, Rule 31.1 requires utilities to design and maintain their conductors and insulators safely and adequately.
The Easy Fire burned 1,806 acres in a Tier 3 High Fire Threat District over a three-day period. Around 26,000 Ventura County residents were evacuated. The fire broke out amid strong Santa Ana winds and dry conditions that helped fuel several other fires throughout California, and prompted Gov. Gavin Newsom to declare a statewide emergency.
The CPUC also ordered financial penalties and corrective actions against Pacific Gas & Electric Corp. and San Diego Gas and Electric Co. for their roles in the infernos and has since strengthened oversight of the investor-owned utilities.
SCE has 30 days to pay the fine and make the corrective actions or request a hearing.
In the company’s third quarter earnings call, CEO Pedro Pizarro of parent company Edison International said the company is progressing its wildfire mitigation plan. The utility is deploying covered conductor and is on pace to complete 4,300 miles, or 43%, of its overhead miles in high fire risk areas by the end of the year.
Management also conducted its quarterly review of loss estimates for the remaining alleged and potential claims related to wildfire and mudslide events in 2017-2018. The review led SCE to record an $880 million increase in estimated losses as of Sept. 30 related to the Woolsey Fire. The deadly blaze killed three people and burned around 97,000 acres of land. More than 1,600 structures also were destroyed.
SCE also recorded expected recoveries through Federal Energy Regulatory Commission electric rates of $50 million, and the resulting net charge to earnings was $830 million.
SCE said it recorded a net loss during 3Q2022 of $128 million (minus 33 cents/share), compared with a net loss of $341 million (minus 90 cents) in the year-earlier period.
