PG&E (Pacific Gas and Electric Company) has faced substantial criticism and legal scrutiny for its practices, which some critics argue represent a form of "corporate fascism." This term is often used to describe an unhealthy entanglement between corporate power and government authority, where corporate interests are prioritized over public welfare. Below, I outline the relevant aspects of PG&E's behavior and relationship with California's regulatory and political entities, alongside the allegations of severe misconduct:

Relationship with the CPUC and Political Influence

• California Public Utilities Commission (CPUC): PG&E has been accused of wielding undue influence over the CPUC, which is tasked with regulating utilities in the state. Critics argue that the CPUC has historically been lenient with PG&E, allowing the company to prioritize profits over safety.

  • For example, internal emails and records have revealed close ties between PG&E executives and CPUC officials, suggesting inappropriate back-channel communications.
  • Despite repeated failures to meet safety standards, PG&E has often received regulatory approvals for rate increases, demonstrating the CPUC's favorable treatment of the utility.

• Elected Officials: PG&E is a significant political contributor in California, donating heavily to campaigns, lobbying efforts, and political action committees. This financial influence may have contributed to favorable policies or regulatory decisions, even in the face of the company's documented failures.

Instances of Negligence Leading to Death and Destruction

PG&E's negligence has led to catastrophic consequences for Californians, including loss of life and property destruction. The most egregious examples include:

San Bruno Pipeline Explosion (2010):

A PG&E gas pipeline exploded in San Bruno, killing 8 people, injuring dozens, and destroying 38 homes. Investigations revealed PG&E's failure to maintain and inspect the pipeline adequately. This disaster highlighted systemic safety issues and a lack of investment in infrastructure maintenance.

• Camp Fire (2018):

The Camp Fire, the deadliest wildfire in California history, killed 85 people, destroyed the town of Paradise, and left thousands homeless. PG&E equipment, specifically poorly maintained electrical lines, was found to be the cause of the fire.

• PG&E later pleaded guilty to 84 counts of involuntary manslaughter, effectively admitting culpability in these deaths.

• Other Wildfires:

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  • PG&E has been implicated in numerous other wildfires, including the Dixie Fire (2021), which became the largest single (non-complex) wildfire in California history, destroying entire communities.
  • These disasters often resulted from aging infrastructure, deferred maintenance, and the company's failure to implement adequate fire-prevention measures.

Rate Increases to Cover Penalties

• Despite being found liable for many of these tragedies, PG&E has been allowed to raise customer rates to cover the costs of lawsuits, settlements, and penalties. This practice essentially shifts the financial burden of the company's failures onto consumers, rather than shareholders or executives.
  • After the Camp Fire, PG&E filed for bankruptcy in 2019 to manage the massive liabilities it faced. In the process, the company successfully negotiated a plan that included billions in ratepayer funds to help cover its debts and settlements.
  • Critics argue that this effectively rewards the company's negligence, as it passes the financial consequences of its actions onto the very people it has harmed.

Indicators of "Corporate Fascism"

The term "corporate fascism" has been used to describe PG&E's operations for several reasons:

• Regulatory Capture: PG&E's influence over the CPUC undermines the regulatory body's role as a watchdog, allowing the utility to prioritize profits over public safety.
• Privatization of Gains, Socialization of Losses: PG&E's ability to raise rates to cover penalties exemplifies how corporate interests can be protected at the expense of the public.
• Government Complicity: Through lobbying and campaign contributions, PG&E has entrenched itself in California's political ecosystem, ensuring minimal accountability despite its repeated failures.

Conclusion

PG&E's pattern of behavior—prioritizing profits over safety, exerting undue influence over regulators, and shifting the financial burden of its misconduct onto consumers—fits many aspects of the "corporate fascism" critique. The company's actions have not only resulted in the loss of life and property but have also demonstrated the systemic failures of California's regulatory and political systems to hold it accountable effectively.