Federal judge orders PG&E to stop paying dividends and spend money to reduce wildfire risk News
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Federal judge orders PG&E to stop paying dividends and spend money to reduce wildfire risk

Judge William Alsup of the US District Court for the Northern District of California on Wednesday ordered Pacific Gas & Electric (PG&E) to stop paying dividends to shareholders and instead direct those funds toward vegetation management.

PG&E is accused of starting California wildfires, including the 2018 Camp Fire, because of the company’s failure to properly maintain its power lines by not clearing away vegetation that could fall or otherwise damage power lines. The company believes that its equipment will be found to be the cause of the Camp Fire.

Before the 2017 and 2018 wildfires, PG&E was on probation stemming from its role in the 2010 San Bruno pipeline explosion. Alsup, who oversees PG&E’s probation, added the dividend restriction as a new condition of the company’s probation.

To ensure that sufficient financial resources are available for [vegetation management], PG&E may not issue any dividends until it is in compliance with all applicable vegetation management requirements as set forth above.

PG&E faces other legal ramifications from the wildfires as well, including bankruptcy proceedings.

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