PG&E reaches $50 million settlement with Shasta County DA over deadly Zogg Fire
Pacific Gas and Electric Company has reached a settlement Wednesday with the Shasta County District Attorney which will allow the utility to avoid criminal charges in the deadly Zogg Fire.
The Zogg Fire burned more than 50,000 acres in Shasta County in September 2020, killing four people and destroying some 200 buildings. PG&E said it accepted Cal Fire's determination that a tree falling onto a power line caused the fire.
In February, PG&E pleaded not guilty to four counts of involuntary manslaughter and not guilty to recklessly starting a fire, saying it believed no crimes were committed, "and that the conduct of our coworkers and contractors reflects good-faith judgment by qualified individuals."
The agreement with the DA's office calls for the utility to fund $45 million in contributions to "organizations dedicated to rebuilding and assisting Shasta County communities" as well as continuing several initiatives to further reduce the risk of wildfires, according to a press statement from PG&E. The recipients will include local fire departments, law enforcement, and community and nonprofit organizations.
In addition, PG&E will pay a $5 million civil penalty to Shasta County. The agreement stipulates that the utility will not seek to recoup the $50 million from customers.
PG&E says it has already settled civil claims with individuals, families, organizations and Shasta County to provide compensation for damages from the Zogg Fire.
The settlement agreement follows a Superior Court order dismissing criminal charges, with the court noting that there were multiple inspections in the area before the fire, there was no evidence that PG&E's inspections fell below industry standards, and there was no evidence that a risk involving the tree was visible before the fire.
"The agreement reflects our continuing commitment to making it right and making it safe. We stand behind our thousands of trained and experienced coworkers and contractors working every day to keep Californians safe. We feel strongly that those good-faith judgments are not criminal," said PG&E CEO Patti Poppe in a prepared statement. "I'm grateful that the Shasta County District Attorney has agreed to work with us to make her community safer, and we look forward to the relationship this agreement creates."
PG&E, which has an estimated 16 million customers in central and Northern California, filed for bankruptcy protection in 2019 after its aging equipment was blamed for a series of fires, including the 2018 Camp Fire that killed 85 people and destroyed 10,000 homes in Paradise and neighboring communities.