In a noteworthy ruling of Gantner v. PG&E Corporation et al. dated November 20, 2023, the Supreme Court of California unanimously concluded that a class-action lawsuit against the utility giant Pacific Gas and Electric (PG&E) was inadmissible due to an existing legislative framework. The lawsuit in question, brought about by multiple plaintiffs, related to Public Safety Power Shutoffs (PSPS) instated by PG&E during its 2019 blackouts.
The case argued that PG&E’s shutoffs had resulted in damages for the plaintiffs. However, the court found that the provision of the Public Utilities Code Section 1759 acted as a barrier. This legal text essentially stipulates that no lawsuit can disrupt the regulatory actions of the California Public Utilities Commission (CPUC) towards utilities’ PSPS programs.
The decision is viewed as upholding the regulatory authority of the CPUC. According to the judges involved in making the ruling, any attempt to tackle such issues outside the regulatory framework established by the CPUC would “impermissibly interfere” with the commission’s jurisdiction.
The detailed judgment, alongside further insights from the legal firm Downey Brand LLP, may be found here.
This ruling signifies not just the supremacy of the regulatory commission in managing utilities, but also provides a precedent for potential future cases wherein utility shutoffs may be constituted under the PSPS or similar programs. For corporations and legal teams dealing with similar issues, understanding the implications of such a judgment is of paramount importance.