PG&E, the Power Company Set to Destroy a Water Source for 600,000 Californians, Just Announced Record Profits (Again)

PG&E, a top donor for Gavin Newsom, made $2.47 billion in 2024. Decommissioning the Potter Valley Project will cut off water for 600,000 citizens.

The state-regulated energy company behind planned dam removals in Northern California just announced record profits for the second year in a row.

Pacific Gas & Electric (PG&E) cleared $2.47 billion in 2024.

Despite these impressive margins, PG&E is citing maintenance costs in their plan to spend some $500 million—most likely at taxpayer or ratepayer expense—to remove two dams that provide water to 600,000 Californians in a fire-prone area.

“Lake Pillsbury is one of the main reasons Lake County survived the 2018 Mendo Complex fire,” said Eddie “EJ” Crandell, a Lake County Supervisor and vice chairman of the Robinson Rancheria of Pomo Indians.

PG&E Is Gavin Newsom’s Second Highest Donor

PG&E is a major donor of Governor Gavin Newsom, whose administration is greenlighting the planned dam removals.

During his gubernatorial run, PG&E was Newsom’s second highest donor, contributing some $208,000 in donations. Prior to that, PG&E paid Newsom’s winery over half a million for “advertising services.”

“What PG&E has in California, is a lineup of elected officials acting as their lobbyists and lawyers,” said Chris Coulombe, former nominee for the second congressional district. “All it takes is a glance at their donor list and you can see people like Jared Huffman, who have been on PG&E’s payroll for over two decades.”

After PG&E announced they no longer planned to pursue relicensing of the Potter Valley Project, a coalition of five environmental groups including Cal Trout sued PG&E over alleged damages to fish populations and demanded the energy company remove the dams.

“Both Scott and Cape Horn dams are clearly causing take of Eel River salmon and steelhead. To the extent they ever had a permit to cause those harms, PG&E no longer enjoys those legal protections,” said Matt Clifford of Trout Unlimited in a statement.

Six Rate Hikes Approved in 2024

State regulators approved six separate rate hikes on consumers in 2024. Californians pay some of the highest electricity costs in the nation.

Rather than update outdated or faulty equipment, PG&E charges consumers for their losses and liabilities. The Public Utility Commission (CPUC) has been more than willing to clear these rate increases.

The CPUC, which regulates utility companies, has a corrupt history with California officials. The board is appointed by the governor. During his tenure, former Governor Jerry Brown selected his personal friend Michael Peevy to run the CPUC.

In 2016, Governor Brown vetoed multiple fire prevention measures that would have raised safety standards from utility companies. At least one could have prevented the 2018 Camp Fire, the deadliest fire in California history.

Peevy was eventually forced to step down after he was caught asking PG&E for more than $1 million in political donations.

PG&E Responsible for 1500 Fires in Four Years

PG&E was responsible for more than 1,500 fires between 2014 and 2017, according to a report by the Wall Street Journal.

In the 2018 Camp Fire, PG&E was found liable and pled guilty to 84 counts of manslaughter. The company then filed for bankruptcy. Many fire victims remain unpaid.

Despite this, PG&E continued to award its executives large bonuses. They also donate to almost every California politician.