PG&E is facing a critical shortage of spare parts and equipment due to COVID-19 supply chain problems, which could lead to prolonged power outages and lapsed wildfire safety targets.
That is according to a new assessment by an independent monitor appointed by state regulators.
The first report by the Independent Safety Monitor – Denver-based Filsinger Energy Partners – cites an internal PG&E report that warns that "supply challenges are widespread and unprecedented" and that "a rapid increase in demand at PG&E for certain materials is outpacing sourced capacity leading to extended lead time."
The monitor says the utility's tracking data indicates it's currently running below minimum inventory levels to assure safety for some 150 various parts. The monitor also cites a separate report from PG&E in May that says the current supply shortfall could trigger "potentially prolonged" customer outages - and may prevent the utility from completing promised wildfire safety work this year.
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Critics seized on the report as evidence that the company is not being managed properly.
"It is not a surprise that global supply chain issues have impacted PG&E's ability to get the safety equipment they need to make the system safe," said Mark Toney, head of the ratepayer advocacy group TURN.
The report notes that despite critical shortages in transformer parts, top management was not being alerted during weekly updates.
Toney says that is a red flag.
"The concern that this report identifies is that the left hand don't know what the right hand is doing," he said. "The management doesn't know that there are shortages -- that's the management’s fault.”
In a statement released after the report, PG&E doesn't specifically refer to the parts shortage - saying "we remain focused on working closely with the independent safety monitor, the California Public Utilities Commission, and other stakeholders towards our shared and unwavering goal of safety."
While the utility didn't answer questions about the parts crunch, the monitor's report does say the utility is now scrambling to find new sources or substitute parts, and is pressuring suppliers to step up orders.
That isn't much comfort for utility critics like Toney, who say they're increasingly concerned as the heart of fire season approaches.
"This is why it's important that PG&E is being independently monitored, that the Office of (Energy Infrastructure) Safety is looking at them, that the PUC is looking at them because we cannot count on PG&E to do the job by themselves."
As it stands, PG&E is running short on nine types of electrical equipment, including system monitoring equipment.
The monitor found the parts shortages are most critical in maintaining underground electric transmission systems and electric substations.
The monitor's report also notes a second possible parts issue, saying a lack of testing of the utility's current stock of critical parts means there is no guarantee the equipment will work correctly after being installed.
