- And in a recent statement, Edison International said “SCE will seek to recover uninsured costs resulting from the 2017/2018 Wildfire/Mudslide Events through electric rates. Recovery of these costs is subject to approval by regulators.”
Criminal Charges Will Not Be Leveled Against SCE For Woolsey Debacle, Civil Cases Not Affected, But SCE Wants Ratepayers To Cover Damage Payments
Written by 991KBU on August 14, 2021
State prosecutors said Friday they cannot prove that Southern California Edison knew that its defective power line in Woolsey Canyon “presented a substantial and unjustifiable risk of causing a fire,” and that SCE “ignored this risk.”
And with those elements missing, the state said it could not press criminal charges against SCE for the November, 2018 wall of fire that destroyed much of western Malibu, killing 3 and altering the lives of tens of thousands of people.
And KBUU News has learned that Edison’s parent company expects ratepayers to cover nearly $1 billion in damage payments to fire victims, as its insurance runs out.
Officials from the state notified the families of the three people burned to death of its conclusion “that there is insufficient evidence to support a criminal prosecution,” the department announced in a news release Friday.
“The investigation involved the examination of video footage of the fire; taking statements from responding fire personnel, experts involved in investigating the fire, and witnesses to the events; and the review of physical and scientific evidence from the fire and the results of autopsies.” the news release said.
The Attorney General’s decision means that investigatory documents are no longer tied by by pending possible criminal charges. This evidence night now be used by persons damaged by the fire as they pursue legal cases against SCE.
The requirements to find criminal guilt are much higher than to find financial liability, and the state decision will likely have no direct impact on the thousands of lawsuits pending against SCE. The company has been slowly paying off litigants in arbitration or settlements, and has already fully reimbursed the City of Malibu for its costs in the fire.
But thousands of lawsuits have yet to be settled.
Edison’s parent company, Edison International, said recently it expects to pay out $4.6 billion on claims from Woolsey and the earlier Thomas fire, which killed 44 people in flames and subsequent mudflows. SCE has approximately $700 million remaining in insurance coverage, but Edison International said it will need to borrow about $1 billion of equity to invest in SCE to pay claims and maintain the company’s investment-grade credit ratings.
As for the lack of criminal charges, a Malibu lawyer told KBUU News Malibu residents should not worry. “Some people are concerned how this affects the Woolsey litigation against SoCal Edison. It does not,” said Malibu lawyer David Olan.
“They are still grossly negligent for failure to maintain their power lines. It does not rise to the level of criminal or intent as the burden of proof is higher in criminal matters, but civilly they are still liable,” he said.
Olan represents KBUU, which lost equipment in the fire and was off the air for 8 days. He also represents KBUU’s general manager, whose house was aflame before he put it out with a garden hose on Nov. 9.
Edison has admitted its power line was “likely” the cause of the fire, and has set aside $2.2 billion to pay damages. Much of that comes from its insurance.
The Woolsey Fire burned 96,949 acres of land, destroyed 1,643 structures, killed three Californians, and prompted the evacuation of more than 295,000 people.
A criminal case was handled by the California Attorney General’s Office and the California Department of Forestry and Fire Protection, in conjunction with the Ventura County Fire Department.
The prosecutors agreed with a state fire report, first reported by KBUU News last December. It found that high winds caused a loose guy wire to blow into a high-voltage line on a lightweight steel support pole in Woolsey Canyon, 25 miles inland from the Malibu coast.
This caused electrical arcing that ignited weeds that should not have been there, the prosecutors said.
And the state said a second, nearby fire ignited when low-voltage SCE communications lines, below the arcing power line/guy wire flashpoint, suddenly became hot with high voltage electricity.
The surge travelled down the mountain on the communications lines, which sparked nearby fires.
“Southern California Edison’s poor vegetation control near its communication conductor lines also contributed to a second ignition point, when those lines became energized by the first arcing event,” the state said Friday.
But SCE’s negligence did not cross the line set by Section 452 of the California Penal Code “by unlawfully causing a fire or committed any other felony violation of California law.
“Section 452 would require prosecutors to not only prove that Southern California Edison’s equipment caused the fire, but also that the company was aware that its actions presented a substantial and unjustifiable risk of causing a fire, that it ignored this risk, and that doing so was a gross deviation from what a reasonable utility would have done in the same situation.”
The state news release concluded by “acknowledging the tragic loss of life and offering condolences to the families,” and said “the California Attorney General’s Office has therefore closed the investigation into this matter.
