Pacific Gas & Electric (PCG)

The Utility is obligated to comply in good faith with all applicable statues, rules, tariffs and orders of the CPUC, the FERC and the NRC relating to the aspects of its electricity and natural gas utility operations which fall within the jurisdictional authority of such regulatory agencies. These include customer billing, customer service, affiliate transactions, vegetation management, and safety and inspection practices. There is a risk that the interpretation and application of these statues, rules, tariffs and orders may change over time and that the Utility will be determined to have not complied with the new interpretation exposing the Utility to potential liability for customer refunds, penalties, or other amounts. As an example, the Utility is required to reimburse the California Department of Forestry, or CDF, for fire suppression costs when a fire on wild lands is caused by the Utility’s failure to maintain a specified clearance between vegetation and overhead lines. Recently, the CDF has demanded the Utility pay for fire suppression costs regardless of whether the Utility is determined to be at fault in identifying and removing hazard trees.

        The Utility's operations are subject to a number of federal and state statutes, CPUC and FERC regulations, rules and orders, as well as the terms of governmental permits, authorizations and licenses.