Edison Admits Role in 2007 Malibu Canyon Fire, Reaches Settlement

By City News Service

Southern California Edison reached a proposed $37 million settlement with state regulators for its role in the October 2007 Malibu Canyon fire, which was sparked by power lines that toppled during high winds, the company and California Public Utilities Commission announced Monday.

The blaze burned more than 3,800 acres and destroyed 14 structures. The settlement, negotiated with the CPUC's Safety and Enforcement Division, still needs the commission's approval.

"As part of the settlement, SCE acknowledges its responsibility in a major incident,'' according to Jack Hagan, director of the Safety and Enforcement Division. "If the settlement is approved it will go a long way toward making SCE's system safer and more reliable.''

According to the CPUC and Edison, $20 million of the settlement would be a penalty paid into the state's general fund, while $17 million would be spent on pole-loading assessments and improvement work on power infrastructure in Malibu Canyon and surrounding areas.

Edison officials said the settlement would not impact customer rates, with the funds coming solely from the company's shareholders. Company officials noted that Edison had established a reserve fund in anticipation of the settlement.

"Safety is a foundational principle at Southern California Edison and is a prerequisite to everything we do,'' SCE President Ron Litzinger said. "We are working with the communication companies we share poles with throughout our service territory to better coordinate and improve pole-loading practices. Our focus is on continually improving our process for loading, inspecting, maintaining and replacing poles to further protect the public and enhance electric service reliability.''

As part of the settlement, Edison admitted it failed to prevent NextG from attaching fiber optic cables to poles in Malibu Canyon, despite an assessment that determined the lines would cause the poles to be overloaded, according to the CPUC.

In a statement, Edison officials acknowledged that one of three failed poles was overloaded by third-party telecommunications equipment.

In September 2012, the CPUC approved a $12 million settlement with AT&T, Verizon and Sprint. A $14.5 million settlement was announced with NextG in February. That settlement is also awaiting approval of the commission.

Malibu's Hans Laetz, who was an intervenor in the case, said the settlement is not a good deal for Malibu. Laetz, who is a part-time journalist, has campaigned for power pole safety.

"It’s not enough," Laetz told Malibu Patch. "It’s not the right direction. Malibu has suffered fires caused by poles breaking north of Mulholland. There is no reason to stop at the traffic light at Mulholland Highway."

Laetz, who praised the state, said he is concerned that Edison will be redesigning its power poles at the same time the state is coming up with new rules for fire risk areas.

"It worries me that they are trying to hit a moving target," Laetz said.

-Malibu Patch Editor Jessica E. Davis contributed to this report.