A swift fall from political power for PG&E, California's largest utility

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A swift fall from political power for PG&E, California's largest utility
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A PG&E effort to ask the California Legislature to help the company pay off wildfire claims fell flat this year at the state Capitol.

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“We firmly believe that Wildfire Victim Recovery Bonds are a critical element to the state’s path forward when it comes to addressing wildfire risk,” the company said in a statement on the failure of the bill. “Reputation is everything in politics and lobbying,” said Rose Kapolczynski, a longtime Democratic consultant.

Through campaign contributions, lobbying and donations to nonprofits, the utility became part of the fabric of the political community over time. But state leaders’ recent remarks about PG&E show a new level of frustration, Sragow said. In 1996, PG&E settled a $333-million class-action lawsuit over contaminated water in the Mojave Desert, a case made famous by the 2000 film “Erin Brockovich” starring Julia Roberts.

Kapolczynski said the litmus test for PG&E may be whether candidates continue to accept the company’s contributions.

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