A judge on Thursday allowed San Francisco to reestablish its postponed legal fight with Pacific Gas & Electric Corp. over electricity delivery costs.
The town has been fighting PG&E for years, asserting the utility needs expensive and unnecessary equipment to be installed by it like housing development and public safety buildings in massive jobs.
All actions were ceased, a process with all bankruptcy filings when PG&E filed for bankruptcy in January.
On Thursday, U.S. Bankruptcy Judge Dennis Montali granted the city’s request for an exemption into the litigation hold. The town argued that the bankruptcy rules are trumped by security consideration and the judge agreed. But the judge said San Francisco would have to wait with other creditors for PG&E to emerge from bankruptcy to collect any potential damages.
San Francisco creates its own power from a dam and reservoir nearby Yosemite National Park about 180 miles east of town. The city pays PG&E to provide the power. San Francisco is asking the Federal Energy Regulatory Commission to force PG&E to reduce its prices.
San Francisco is the only municipality but a few requests have been made from parties. On Thursday, the judge seemed to be in favor of allowing Northern California gasoline producer Valero to pursue its $75 million lawsuit against PG&E.
Valero sued PG&E at 2017, attributing a power outage in the company’s Northern California refinery on the usefulness. Valero alleges that the day-long outage damaged the refinery’s gear and led to the launch of 74,000 pounds of contamination, prompting regulatory investigations.
Valero’s attorneys said the insurance carriers of PG&E could pay that kind of settlement would be more efficient than waiting for PG&E to emerge out of bankruptcy and for any damages obtained in court.
State fire officials blame PG&E’s gear for starting over a dozen California wildfires within the previous two decades. PG&E filed for bankruptcy in January, saying it confronted at least $13 billion by wildfire victims in legal claims.