{"id":10244,"date":"2016-11-04T00:07:12","date_gmt":"2016-11-04T04:07:12","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/wildfires-pges-latest-90-million-problem\/"},"modified":"2016-11-04T00:07:12","modified_gmt":"2016-11-04T04:07:12","slug":"wildfires-pges-latest-90-million-problem","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/wildfires-pges-latest-90-million-problem\/","title":{"rendered":"Wildfires \u2013 PG&E\u2019s latest $90 million problem"},"content":{"rendered":"

\"insta\"<\/a>As California contends with climate change, residents and businesses are adjusting to the new reality of extreme weather events, drought, wildfires and increased water scarcity. In 2015, out-of-control brushfire charred 3,500 acres, jumping across the I-15 freeway during rush-hour traffic and setting cars ablaze[1]<\/a>. A few days later, the region was pounded by intense, virtually unheard-of summer rains[2]<\/a>. California\u2019s PG&E, one of the largest combined natural gas and electric utilities in the United States, faces multiple challenges to energy production and transmission given the impacts of climate change. Wildfires have been a rising concern in recent years \u2013 based on a Fox News report, wildfires led to six deaths in Northern California and damages exceeded $1 billion in September 2015 alone[3]<\/a>.<\/p>\n

Wildfires: a rising threat<\/strong><\/p>\n

\"Source:<\/a>
Source: Union of Concerned Scientists<\/figcaption><\/figure>\n

Wildfires occur at the \u201cintersection of dry weather, available fuel and ignition sources\u201d[4]<\/a>. In California, rising temperatures have been conducive to insect infestations, resulting in large areas of dead and highly combustible trees[5]<\/a>. Drier conditions have increased the frequency of wildfires, leading to greater fire-related outages in PG&E\u2019s service areas. \u00a0The threat can also contribute to increased maintenance costs and reduced operating efficiency[6]<\/a>. In addition, wildfires increase the need for emergency PG&E crews to restore services and may severely damage transmission and distribution lines, gas infrastructure and hydroelectric assets[7]<\/a>.<\/p>\n

PG&E has responded to this rising threat by sending crews to pre-treat infrastructure with fire retardant during wildfires to mitigate losses from damage[8]<\/a>. They are currently using state-of-the-art weather forecast model data to evaluate short- to medium-term fire weather risks across the company\u2019s service areas[9]<\/a>. The company has also developed a multi-year program to identify and minimize failures of its electrical distribution system, which can cause lines to separate and cause fires[10]<\/a>. In addition, the company has partnered with CAL FIRE on its \u201cOne Less Spark, One Less Wildfire\u201d public safety campaign to increase public awareness and minimize the frequency, size and cost of wildfires started by human ignition[11]<\/a>.<\/p>\n

Has PG&E responded adequately to the threat?<\/strong><\/p>\n

PG&E appears to be the poster child for sustainability – a study by the Sustainable Investments Institute examined the policies of top 25 electric utilities in the U.S. and noted that PG&E was the most inclined to adapt to climate change risk[12]<\/a>. However, the company still has a long way to go. Recently a Cal Fire investigation concluded that PG&E was responsible for the 2015 Butte Fire, the seventh largest in state history that spread to more than 70,000 acres[13]<\/a>. According to the report, PG&E crews did not properly prune a pine tree which leaned on a power line and ultimately sparked the fire[14]<\/a>. PG&E was accused of negligence and Cal Fire is seeking over $90 million in damages[15]<\/a>.<\/p>\n

From a corporate standpoint, the company has made significant progress in preparing for the potential impacts of climate change. However, they need to devote more resources to mitigate the threat of wildfires. Prioritizing the management of vegetation under power lines is key. This includes regular trimming, clearing and herbicide application on vegetation surrounding electric poles. Replacing wood pools with steel ones would substantially reduce the risk of fire. Steel poles are capable of carrying thicker lines that can be spread farther apart, minimizing the chance of a tree limb sparking a fire[16]<\/a>. PG&E could also use technology as a risk mitigation tool, e.g. by using robotic sensors to detect obstacles such as overgrown trees and to check for faulty connections that cause sparks. Lastly, PG&E could conduct a study to determine the costs of relocating its power lines underground. The last step would undoubtedly be a significant capital expenditure but, as lawsuit expenses mount, the company needs to consider if drastic changes are necessary.<\/p>\n

(627 words)<\/p>\n

[1]<\/a> \u00a0\u201cBrush fire jumps I-15, sets cars ablaze at Cajon Pass in California,\u201d July 15, 2015, Fox News, http:\/\/q13fox.com\/2015\/07\/17\/brush-fire-jumps-i-15-sets-cars-ablaze-at-el-cajon-pass-in-california-video\/<\/a>, accessed November 1, 2016.<\/p>\n

[2]<\/a> Eric Holthaus, \u201cThe Point of No Return: Climate Change Nightmares Are Already Here,\u201d Rolling Stone, August 5, 2015, [http:\/\/www.rollingstone.com\/politics\/news\/the-point-of-no-return-climate-change-nightmares-are-already-here-20150805<\/a>], accessed October 2016.<\/p>\n

[3]<\/a> \u201cNorthern California wildfires cost more than $1 billion,\u201d January 25, 2016, Fox News, http:\/\/www.foxnews.com\/us\/2016\/01\/25\/ap-newsbreak-1-billion-insured-losses-in-california-fires.html<\/u>, accessed November 2, 2016.<\/p>\n

[4]<\/a> http:\/\/www.nature.com\/articles\/ncomms8537#ref10<\/a><\/p>\n

[5]<\/a> \u201cGlobal Warming and Wildfires\u201d, National Wildlife Federation, http:\/\/www.nwf.org\/wildlife\/threats-to-wildlife\/global-warming\/global-warming-is-causing-extreme-weather\/wildfires.aspx<\/a>, accessed on November 3, 2016.<\/p>\n

[6]<\/a> Pacific Gas and Electric Company, \u201cClimate Change Vulnerability Assessment\u201d (PDF file), downloaded from PG&E website, [http:\/\/www.pgecurrents.com\/wp-content\/uploads\/2016\/02\/PGE_climate_resilience.pdf<\/a>], accessed October 2016.<\/p>\n

[7]<\/a> Pacific Gas and Electric Company, \u201cClimate Change\u00a0 Vulnerability Assessment\u201d (PDF file), downloaded from PG&E website, [http:\/\/www.pgecurrents.com\/wp-content\/uploads\/2016\/02\/PGE_climate_resilience.pdf<\/a>], accessed October 2016.<\/p>\n

[8]<\/a> Pacific Gas and Electric Company, \u201cClimate Change\u00a0 Vulnerability Assessment\u201d (PDF file), downloaded from PG&E website, [http:\/\/www.pgecurrents.com\/wp-content\/uploads\/2016\/02\/PGE_climate_resilience.pdf<\/a>], accessed October 2016.<\/p>\n

[9]<\/a> Pacific Gas and Electric Company, \u201cClimate Change\u00a0 Vulnerability Assessment\u201d (PDF file), downloaded from PG&E website, [http:\/\/www.pgecurrents.com\/wp-content\/uploads\/2016\/02\/PGE_climate_resilience.pdf<\/a>], accessed October 2016.<\/p>\n

[10]<\/a> Pacific Gas and Electric Company, \u201cClimate Change\u00a0 Vulnerability Assessment\u201d (PDF file), downloaded from PG&E website, [http:\/\/www.pgecurrents.com\/wp-content\/uploads\/2016\/02\/PGE_climate_resilience.pdf<\/a>], accessed October 2016.<\/p>\n

[11]<\/a> Pacific Gas and Electric Company, \u201cPG&E, CAL FIRE and California Fire Safe Council Join Forces to Reduce Wildfire Risk\u201d, downloaded from PG&E website, [https:\/\/www.pge.com\/en\/about\/newsroom\/newsdetails\/index.page?title=20140925_pge_cal_fire_and_california_fire_safe_council_join_forces_to_reduce_wildfire_risk],<\/u> accessed October 2016.<\/p>\n

[12]<\/a> Sustainable Investments Institute, \u201cThe Top 25 U.S. Electric Utilities: Climate Change, Corporate Governance and Politics\u201d, downloaded from IRRC Institute website, [http:\/\/irrcinstitute.org\/wp-content\/uploads\/2016\/04\/FINAL-Climate-Change-Corporate-Governance-and-Politics.pdf], accessed October 31, 2016.<\/p>\n

[13]<\/a> \u00a0Brad Brannan, \u201cCal Fire blames PG&E for Butte Fire, will seek $90 million\u201d, Sacramento Bee, April 28, 2016, [http:\/\/www.sacbee.com\/news\/state\/california\/fires\/article74496267.html<\/u>], accessed November 1, 2016.<\/p>\n

[14]<\/a> Jaxon Van Derbeken, \u201cPG&E Negligence Over Pine Tree Started Butte Fire in Sierra: CalFire\u201d, NBC News, April 28, 2016, [http:\/\/www.nbcbayarea.com\/news\/local\/PGE-Negligence-Pine-Started-Butte-Fire-in-Sierra-CalFire-377467081.html<\/u>], accessed November 1, 2016.<\/p>\n

[15]<\/a> Brad Brannan, \u201cCal Fire blames PG&E for Butte Fire, will seek $90 million\u201d, The Sacramento Bee, April 28, 2016, [http:\/\/www.sacbee.com\/news\/state\/california\/fires\/article74496267.html<\/u>], accessed November 1, 2016.<\/p>\n

 <\/p>\n

[16]<\/a> J Harry Jones, \u201cPower lines and poles to be replaced throughout Cleveland National Forest,\u201d Los Angeles Times, October 5, 2016, [http:\/\/www.latimes.com\/local\/california\/la-me-forest-power-poles-20161005-snap-story.html], accessed November 1, 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

The rising costs of wildfires – can PG&amp;E continue to adapt and be part of the solution?<\/p>\n","protected":false},"author":1780,"featured_media":10245,"comment_status":"open","ping_status":"closed","template":"","categories":[1254,1218,1564,1563],"class_list":["post-10244","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-california","category-climate-change","category-pge","category-wildfires"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\nWildfires \u2013 PG&E\u2019s latest $90 million problem - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/wildfires-pges-latest-90-million-problem\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wildfires \u2013 PG&E\u2019s latest $90 million problem - 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