Moody’s on California Utilities — Liability is Reduced

Good news for California’s utilities. Last week Moody’s investors Service issued a report saying the three utilities now have reduced their wildfire liability. It said Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric have invested heavily in wildfire mitigation.

As a result their liability is lowered.

That’s good news for the utilities since all three have been the cause of horrendous, and deadly, wildfires over the last several years. The report says the investment of large amounts of money will help the three utilities to survive the financial impact of wildfire in the areas they serve.

“All three have redoubled their efforts to harden infrastructure and to adopt new technologies and strategies to reduce ignition risk originating from power lines and other utility equipment,” the report said. “As a result, each utility will be better positioned to limit their liability exposure to wildfires in the future.”

That doesn’t totally take the state off the hook.

“California remains highly vulnerable to fast-spreading wildfires, regardless of the source of ignition,” Moody’s states. “California’s efforts to suppress wildfires have inadvertently led to the significant accumulation of grasses, shrubs, dead trees and fallen leaves and pine needles, which can fuel wildfires. Meanwhile, climate change has increased wildfire risk by making it easier for fires to start and spread and by making trees more vulnerable to diseases and insect infestation.”

Source link: Insurance Journal — http://bit.ly/3TJg1sR