PCWA, project authority settle with PG&E over Mosquito Fire

Editor's note: This story was updated at 9:23 a.m. Wednesday, April 15, to add a statement from PG&E. The Placer County Water Agency (PCWA) and Middle Fork Project Finance Authority (MFPFA) have entered into a settlement agreement with Pacific Gas and Electric Company and Pacific Gas and Electric Corporation (collectively PG&E), resolving all litigation resulting from the 2022 Mosquito Fire. The Mosquito Fire ignited Sept 6, 2022, near Oxbow Reservoir outside Foresthill and burned 76,788 acres across Placer and El Dorado counties. The fire resulted in PCWA's Middle Fork American River Hydroelectric Project being offline for six months, interrupting power generation and impacting operations. The fire also caused damage to several PCWA facilities and surrounding natural resources affecting project operations. As part of the settlement, PG&E will pay PCWA $80 million, which PCWA will then transfer to the MFPFA. The MFPFA is a joint powers authority responsible for budgeting and administering funds for the maintenance and operation of the project. In the settlement, PG&E has also committed to reconfiguring the electric system in areas where PG&E's infrastructure connects with PCWA's project facilities, supporting ongoing efforts to enhance the safety and reliability of the energy grid. PG&E issued a statement saying, "PG&E's most important responsibility is the safety of our customers and the communities we serve. The cause of the fire has not been determined, but we feel it's important to resolve this matter so we can continue our focused work on system safety and reliability. Since 2022, PG&E's wildfire mitigation efforts have continued to evolve and improve, resulting in no major fires from our equipment in the last three years. We remain focused on reducing wildfire risk across our service area and are committed to doing everything we can to keep everyone safe." PCWA and MFPFA were represented by Buchalter LLP, PCWA General Counsel Dan Kelly, and PCWA Deputy General Counsel and MFPFA Legal Counsel Elise Nelson. The case was mediated by Antonio Piazza of Mediated Negotiations. A copy of the settlement agreement can be found at https://docs.pcwa.net/mosquito-fire-settlement.pdf.