On a recent episode the Leadership Next podcast, hosted by Diane Brady, Pacific Gas and Electric (PG&E) CEO Patti Poppe discussed the company’s efforts following the Camp Fire, one of the deadliest wildfires in U.S. history.
After the utility faced criminal charges related to the fire, Poppe joined the company with a focus on improving safety and operations, rather than merely addressing financial issues.
Poppe emphasized: “It was very important to me when I took this role that it was, in fact, an operational and cultural turnaround.”
She explained that the company implemented foundational changes aimed at reducing wildfire risks and improving employee safety, including the use of a “performance playbook” to streamline operations.
A major part of Poppe’s leadership at PG&E has been addressing wildfire prevention, particularly in California’s high-risk areas.
According to Poppe, the company has significantly reduced wildfire risk, with a 93% decrease in economic damage and a 99% reduction in acres burned, as assessed by Moody’s.
Poppe explained that electric equipment sparks pose a constant fire risk, especially in areas with dead or dry trees.
PG&E has focused on creating a “fail-safe environment” to minimize such hazards, especially in regions like the Sierras and Santa Cruz Mountains.
Poppe stated: “We’ve had to absolutely create what we call a fail-safe environment for our equipment.”
On the podcast, Poppe highlighted how investing in infrastructure to reduce wildfire risks is more cost-effective than current maintenance methods.
She noted that wildfire mitigation efforts, such as vegetation management, are expensive, and argued that infrastructure investments, like burying power lines, can deliver long-term savings for customers.
She added: “Wildfire is expensive. Catastrophic wildfire is devastatingly expensive. The amount of vegetation management that we are doing is expensive.
“So when we can replace an annual maintenance cost with an infrastructure investment that dramatically, 99% reduction in risk, that is lower cost.”
Discussing climate change, Poppe underscored the importance of both adaptation and mitigation in PG&E’s approach to addressing the new environmental risks.
She stated that the infrastructure has to be adapted to fit changing purposes, as the risks have evolved due to climate change.
Poppe mentioned PG&E’s efforts to decarbonize the economy while adapting infrastructure to deal with new challenges: “We definitely are building infrastructure that’s fit for purpose and the purpose has changed and the risks have changed. And so we have to adapt that infrastructure.”
PG&E CEO Patti Poppe appeared on the Leadership Next podcast to discuss the utility’s recovery efforts after the Camp Fire and its current focus on operational safety and wildfire risk reduction.
She explained that PG&E has made substantial progress in reducing wildfire risk through infrastructure improvements and risk management strategies.
Poppe stressed the importance of adapting to the impacts of climate change and described the utility’s shift towards long-term infrastructure investments, such as burying power lines, to reduce fire hazards.
The utility’s focus on safety and adapting to climate challenges has also involved measures to improve worker safety and reduce fatalities.
