GRIZZLY FLATS, Calif. (October 17, 2023) – Pacific Gas & Electric (PG&E), one of the nation’s largest utilities, is at the center of a critical debate in California as it seeks to bury power lines in high-risk areas to mitigate the risk of devastating wildfires. The utility’s proposal, while aiming to enhance safety, is causing controversy as state regulators express concerns about the cost and timeframe involved.
The context for this heated debate is the memory of the catastrophic 2018 Paradise fire that claimed the lives of 85 people, a disaster attributed to PG&E’s equipment.
The company now seeks to prevent such destructive blazes by undergrounding power lines in vulnerable regions.
However, the hurdle in PG&E’s path is the estimated cost of $5.9 billion, which has drawn scrutiny from state regulators. This concern stems from the potential financial burden on PG&E’s customers, who already face some of the highest utility rates in the nation.
State regulators are favoring an alternative approach – covering overhead power lines with protective materials. While cheaper, this method is perceived as riskier by PG&E. The utility argues that burying power lines reduces the risk of starting a wildfire by 99% because they can’t be affected by windstorms. In contrast, the protective covering would offer a 62% risk reduction.
PG&E’s CEO, Patti Poppe, expressed the company’s reluctance to live with a 35% risk reduction, stating, “Who wants to get on a plane that has a 35% chance of crashing?” Poppe believes that the burial of power lines is a safer and more effective solution.
Notably, PG&E filed its comprehensive plan with state regulators last year, and the California Public Utilities Commission, appointed by Governor Gavin Newsom, is scheduled to make a decision on the matter next month. PG&E will present its case in person before the commission this Wednesday.
The scale and speed of what PG&E intends to achieve are indeed unprecedented. The plan includes burying 2,000 miles of power lines, part of the broader goal to place 10,000 miles underground over the next decade. This issue holds national significance, as utilities across the country grapple with weighing the risks and costs associated with undergrounding power lines.
Currently, the majority of the nation’s power lines are above ground due to cost considerations. However, the increasing frequency and severity of natural disasters are compelling more utilities to invest in burying power lines. In Florida, where hurricanes pose a significant threat, around 45% of Florida Power and Light’s distribution system is underground.
California’s other major investor-owned utilities have also embarked on undergrounding projects. Southern California Edison plans to bury 600 miles of power lines by 2028, and San Diego Gas & Electric has already buried 145 miles of power lines since 2020, with plans to bury an additional 1,500 miles by 2031.
The issue extends beyond utility bills; in the past year, seven of the top 12 insurance companies conducting business in California have either paused or restricted new business in the state due to wildfire risk.
While burying power lines is the most effective means to reduce wildfire risk, it’s not a swift solution. The time required for planning, permits, and permissions makes it a long-term endeavor. For instance, at the start of 2018, both PG&E and Southern California Edison had only 5% of their high-threat fire districts protected with underground lines or protective covers.
PG&E CEO Patti Poppe insists that the company has a “moral obligation” to reduce wildfire risk, and the urgency of this task cannot be overstated. The discussion surrounding this ambitious plan continues to be one of the most critical topics in California, as the state grapples with balancing safety, cost, and the expectations of utility customers.
