California Regulators Skeptical of PG&E’s Promise to Improve Safety

April 17, 2019 by Paul Elias

California regulators expressed skepticism that Pacific Gas & Electric Corp.’s new leaders have enough professional experience to instill the deep corporate culture of safety they say the company has lacked.

The utility has been blamed for more than a dozen of California’s most destructive wildfires in the past two years.

The five-member California Public Utilities Commission questioned veteran PG&E board member Richard Kelly about the safety qualifications of 10 new board members and incoming chief executive Bill Johnson, who starts May 1.

“It safe to say that there is still anxiety,” CPUC president Michael Picker said at a commission meeting in San Francisco.

Picker and other commissioners said a majority of the board appear to have little experience with building corporate safety programs.

Kelly defended their resumes, saying it was “imperative” that PG&E board members have financial skills to help the company emerge from bankruptcy protection, which it filed for in January.

“I think we really were looking for people who would bring profound experience in compliance and safety culture,” Kelly said.

Johnson was hired to run PG&E after serving six years as chief executive of the Tennessee Valley Authority, a publicly owned utility.

“We’re hoping he brings the skillset needed to change the culture,” Kelly said. “I’m hoping we’ll see a new PG&E with him in charge.”

Northstar Consulting Group, hired by the PUC, reported last month that PG&E continues to lack an overall safety strategy, a shortcoming identified two years ago.

Northstar said in the report that a new safety plan PG&E developed fell short and that it continues to be concerned that the company’s divisions are adopting safety plans independent of each other.

Northstar also said PG&E managers aren’t providing enough supervision of safety inspectors in the field.

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