Electrical workers repair power lines leading into the fire ravaged town of Lahaina on the island of Maui in Hawaii, August 15, 2023.
Mike Blake | Reuters
Electric companies in the western U.S. are facing mounting lawsuits alleging that their failure to prepare for extreme weather has resulted in repeated, catastrophic wildfires that have taken scores of lives and caused billions of dollars in damages.
Hawaiian Electric is the latest utility to face allegations of negligence. Maui County sued the power company for damages on Thursday over its alleged role in the devastating wildfires on Maui this month that have killed more than 100 people and burned the historic town of Lahaina to the ground.
The Maui County complaint is the 12th lawsuit filed against Hawaiian Electric. The suits allege that downed power lines operated by the company contributed to the deadliest U.S. wildfire in more than a century.
The suits accuse the utility of negligence for failing to shut off power even after the National Weather Service had issued a “red flag” warning of an increased fire risk due to high winds from Hurricane Dora and drought conditions on the island.
Hawaii Electric pushed back against some of those claims in a statement Sunday.
The credit agency Fitch has said the litigation could pose an existential threat to the company. Pacific Gas & Electric in California filed for bankruptcy in 2019 when facing billions of dollars in liability for wildfires.
The allegations leveled against Hawaiian Electric echo lawsuits brought against PG&E in California over the 2018 Camp Fire, Berkshire Hathaway’s PacifiCorp in Oregon over the 2020 Labor Day wildfires and Xcel Energy in Colorado over the 2021 Marshall Fire.
Before all these catastrophic wildfires, the companies did not shut the power off despite high winds that can knock down power lines and combine with dry or outright drought conditions to create a high fire risk.
The wildfire risk posed by aboveground power lines is well documented. More than 32,000 wildfires were ignited by transmission and distribution lines in the U.S. from 1992 to 2020, according to U.S. Forest Service data.
Paul Starita, an attorney who represents Lahaina residents in one of the suits against Hawaiian Electric, said utilities are not doing enough to harden their infrastructure against extreme weather and clear brush to prevent catastrophic fires.
“They’re just not doing it,” said Starita, senior counsel at Singleton Schreiber, a law firm that has represented 12,000 victims in fires caused by utilities. “And when you know the system has a problem — shut down the power,” he said.
The industry suffers from a culture that is slow to change and has historically had a financial incentive to not overspend on infrastructure because their performance has been judged on how much money they save their customers, said Alexandra von Meier, an electric grid expert.
“The industry just is changing more slowly than the climate is,” said von Meier, an independent consultant and former professor at the University of California, Berkeley. “The industry needs different standard practices today than they needed 10 years ago. They just haven’t adapted yet.”
The failure to adapt swiftly to climate change has had catastrophic consequences in lives lost, homes destroyed and increasingly for the utilities’ own business interests.
Lives lost, billions in damages
The Maui fires have killed at least 115 people with hundreds still missing. The town of Lahaina is destroyed. Moody’s estimates the wildfires have caused up to $6 billion in economic losses.
Fitch, Moody’s and S&P recently downgraded Hawaiian Electric’s credit rating to junk status, with Fitch warning that the company faces more than $3.8 billion in potential liability for the Maui wildfires.
Though the lawsuits point the finger at Hawaiian Electric, the authorities are still investigating the cause of the Maui wildfires. The Bureau of Alcohol, Tobacco, Firearms and Explosives has deployed a team with an electrical engineer to assist Maui County fire officials in determining the origins of the blazes.
Just two months before the Maui fires, Colorado law enforcement officials found that a power line operated by the Minnesota-based utility Xcel Energy likely caused one of the two initial fires that led to the 2021 Marshall Fire in Boulder County. The line had become unmoored from its pole during high winds.
The Marshall Fire killed two people, destroyed more than 1,000 homes and dozens of commercial buildings, and burned 6,000 acres of land. Colorado’s insurance commissioner has put the total property losses at more than $2 billion, making it the costliest wildfire in state history.
Boulder County District Attorney Michael Dougherty said during a news conference in June that criminal charges were not brought against Xcel because there was no evidence of worn materials, shoddy construction and substandard conditions in its power line.
Xcel CEO Bob Frenzel said the company strongly disagrees with the investigation’s conclusion that the power line likely contributed to the blaze. He said Xcel will vigorously defend itself in court against mounting lawsuits.
The company said it is aware of eight lawsuits representing at least 586 plaintiffs and expects further complaints, according to its latest quarterly financial filing. If Xcel is found liable for the Marshall Fire, the total damages could exceed the company’s insurance coverage of $500 million, according to the filing.
Days after Boulder County released its Marshall Fire findings, a jury in Oregon found that Berkshire Hathaway‘s PacifiCorp was to blame for four of the 2020 Labor Day wildfires and ordered the company to pay $90 million in damages to 17 homeowners.
PacifiCorp said the damages sought in the various lawsuits, complaints and demands filed in Oregon over the wildfires total more than $7 billion, according to the company’s latest financial filing. The utility has already incurred probable losses from the fires of more than $1 billion, according to the filing.
The Labor Day wildfires in Oregon killed nine people, destroyed more than 5,000 homes and burned 1.2 million acres of land in the most destructive multiple-fire event in the state’s history.
Though the official cause of the fires is still under investigation, homeowners in the class-action lawsuit said downed power lines operated by PacifiCorp triggered the fires. They accused the company of acting negligently by failing to shut the power off. PacifiCorp has said it will appeal the June jury verdict, which could take years.
The company said in its latest financial filing that government agencies have informed the company that they are contemplating actions in connection with some of the 2020 wildfires.
These catastrophes came years after the devastating 2018 Camp Fire in California that should have served as an urgent, tragic warning to the industry.
The Camp Fire killed 85 people, destroyed more than 18,000 buildings and burned over 153,000 acres of land. The town of Paradise, like Lahaina in the Maui fires, was almost completely destroyed by the inferno.
The Camp Fire was ignited by a power line that PG&E failed to maintain with components dating back to 1921. The company was indicted and ultimately pleaded guilty to 84 counts of involuntary manslaughter.
PG&E filed for bankruptcy protection in 2019 in the face of $30 billion in wildfire liability. The company reached a $13.5 billion settlement with victims and emerged from bankruptcy in 2020.
Aging power lines
The century-old infrastructure that led to the 2018 Camp Fire, though particularly egregious, is not an isolated problem. Most of the transmission and distribution lines in the U.S. have reached or surpassed their 50-year intended lifespan, according to the American Society of Civil Engineers.
And this aging infrastructure is running up against an accelerating number of disasters due to climate change, according to ASCE. Maui County has alleged Hawaiian Electric operated wood utility poles that were severely damaged by decay, putting them at increased risk of toppling during a high wind event.
And even if a utility perfectly maintains and operates its equipment, it is next to impossible to guarantee there will never be a spark with aboveground transmission and distribution infrastructure, von Meier said.
The smartest solution is to install the transmission lines, switchgear and transformers underground, she said. The problem is that this is expensive. It costs about 10 times as much to install electrical infrastructure underground compared with aboveground, von Meier said.
“To really reinforce the infrastructure, both to make it reliable in the face of extreme weather and to keep it from causing fires, is going to be very, very expensive,” von Meier said. The U.S. is facing an investment shortfall of $338 billion in electric infrastructure through to 2039, according to ASCE.
The Edison Electric Institute, the trade association that represents investor-owned electric companies, said the industry has invested $1 trillion over the past decade in upgrading and maintaining infrastructure and is on track to invest more than $167 billion in 2023.
“Substantial investments in adaptation, hardening, and resilience are being made to help mitigate risk,” said Scott Aaronson, EEI’s head of security and preparedness.
“Unfortunately, there is no such thing as zero risk, which is why we are working to drive down that risk and ensure we are prepared to respond safely and efficiently when incidents do occur,” Aaronson said.
Joseph Mitchell, a scientist who has served as an expert on wildfires for the California Public Utilities Commission, said electric companies in the Golden State are moving to install their lines below ground to mitigate the risk.
But Mitchell said insulating aboveground power lines with a protective covering is also an effective solution that is cheaper and can be rolled out more quickly. There is also technology coming to market that can de-energize power lines automatically when there’s a problem, he said.
Power shut-offs
The utilities all failed to shut the power off before these wildfires. Hawaiian Electric CEO Shelee Kimura said during a news conference earlier this month that cutting power would have jeopardized Lahaina’s water supply and people who rely on specialized medical equipment.
“The electricity powers the pumps that provide the water, and so that was also a critical need during that time,” Kimura said.
“There are choices that need to be made and all of those factors play into it,” Kimura said. “So every utility will look at that differently depending on the situation.”
Hawaiian Electric subsequently said downed power lines appear to have caused a morning brush fire in Lahaina, but the power was off when a second fire broke out that afternoon. The cause of the second fire is still under investigation.
Von Meier and Mitchell both said that a decision to shut off power is not an easy one. It comes with risks that can also potentially put lives in jeopardy, but Mitchell said it is the right decision when lines are going to be pushed to their limit during high winds in potential fire conditions.
“You’re talking about potential criminal liability here. The financial liability is going to be humungous for these fires,” said Mitchell, who founded a wildfire consulting firm called M-bar Technologies.
Von Meier said the risks of shutting power off underlines a deeper planning and resilience problem in U.S. infrastructure. Drinking water should not be in jeopardy if the grid goes out, she said, and people with specialized medical equipment should be provided with reliable solar-powered backup batteries.
“Nobody in an electric utility should be in a situation where their decision to shut the power off means that life-sustaining equipment will fail,” she said.
Kimura also said Hawaiian Electric had no program in place for a power shutdown. The utilities need to learn the lesson that clear guidelines need to be in place for when power should be cut, von Meier said.
“It’s sort of the same story every time — people don’t think it can happen there,” Mitchell said of wildfires ignited by power lines. “Everybody has to learn the hard way. Hopefully, this is the last time and people will come up with contingency plans.”
The PNY Ponie P2, an electric cargo motorcycle built for serious utility work, has just completed a wide-ranging pilot program, and the results are in. After being put through the paces in everything from food delivery to mail service and even ambulance duty, the Ponie P2 seems more than ready for the demands of the modern urban fleet.
Now the bike is undergoing even further refinement ahead of a larger expected rollout.
The pilots were conducted across several use cases, with partners testing the Ponie P2 in real-world delivery and emergency scenarios. Food couriers praised the bike’s nimbleness and acceleration in dense traffic. Mail carriers appreciated the large rear cargo box and underseat storage. And perhaps most impressively, the Ponie P2 served as a nimble ambulance motorcycle for navigating congested cities where traditional vehicles often fall short, helping reach emergency situations faster while carrying a wide range of lifesaving gear normally requiring a full ambulance to carry.
Capable of highway speeds and with two large storage trunks totalling 400 L (14 cubic feet) of cargo space, the Ponie P2 offers something of a Goldilocks option between cumbersome electric vans and lightweight but cargo-limited electric bicycles. The Ponie P2 has the speed to take shortcuts on faster urban highways and carry significantly more cargo, but can still wiggle down narrow city alleyways and take advantage of lane filtering, cutting urban trip time in half or better compared to four-wheeled vehicles.
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The summer pilot programs helped the company verify the design and gain real-world insight into areas where the vehicles could be improved.
“We got honest and invaluable feedback,” said PNY CEO Netzah Sadeh. “We listened closely to both the great feedback and the areas needing improvement. We heard the calls for enhanced seat comfort for long shifts and the need for a fast-charging option to support two shifts a day. I want to assure our riders that we are on it; their insights are already shaping the next iteration of the Ponie P2 as we move forward.”
Electrek had the chance to check out the vehicles at EICMA last year in Milan as well as test ride them in Tel Aviv ahead of the pilot, and they’re the real deal (see the clip below). With speeds of up to 100 km/h (62 mph) and various configurations for cargo and passenger use, they’re a unique solution for urban transport that sits somewhere between an electric scooter and an electric van.
The Ponie P2’s modular design makes it adaptable for a wide range of professional uses, and its all-electric drivetrain keeps running costs low while helping cities cut emissions.
Micah Toll test rides a Ponie P2 ahead of the pilot testing period
With strong results from the pilot and rider feedback already driving improvements, this could be one of the most practical workhorses in the growing electric utility bike space.
Now that the pilot program has wrapped up, PNY is already working on refining the Ponie P2 to meet rider demands.
If the next version is anything like what we’ve seen so far, don’t be surprised to see more of these electric cargo motorcycles buzzing through city streets soon.
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The headquarters of the Abu Dhabi National Oil Co. (ADNOC), right, and Etihad Towers, center, surrounded by residential and commercial properties in Abu Dhabi, United Arab Emirates, on Sunday, April 10, 2022. It is not just about the oil production that countries need to pay attention to, but also investments in renewables, Alhmeri affirmed.
Christopher Pike | Bloomberg | Getty Images
Global private-equity giant KKR has expanded its partnership with the Abu Dhabi National Oil Company, acquiring a minority stake in ADNOC Gas Pipeline Assets.
That ADNOC subsidiary operates 38 gas pipelines and two export terminals in the United Arab Emirates. KKR did not disclose the value of the deal to CNBC.
The partnership follows ADNOC’s 2019 oil pipelines deal with KKR and BlackRock, which opened the door to foreign direct investment across the region.
“This investment reflects KKR’s commitment to expand partnerships and investment across the Middle East,” said David Petraeus, partner at KKR and chairman of the KKR Global Institute and KKR Middle East. “The region’s strong fundamentals, bold vision, and focused leadership offer increasingly attractive opportunities for global investors.”
Earlier this year, the firm appointed former CIA Director Petraeus, who joined KKR in 2013, as chair of its Middle East operations and launched a dedicated investment team led by Julian Barratt-Due.
The transaction marks another milestone in KKR’s expansion in the region. It acquired a stake in Dubai-based Gulf Data Hub, with a combined commitment from the two firms of more than $5 billion to fund the expansion of GDH’s data center network.
The ADNOC gas pipeline network, which links the company’s upstream assets to domestic off-takers across the UAE, remains fully owned and operated by ADNOC. KKR has taken a minority stake, so ADNOC will retain control. KKR’s stake — acquired through its managed accounts — is structured to yield long-term revenue, the company said.
The move expands KKR’s over 16-year presence in the Middle East, with offices in the UAE and Saudi Arabia. The firm now manages more than $90 billion in infrastructure assets globally since launching its infrastructure strategy in 2008, according to information on its website.
Daimler Truck AG CEO Karin Rådström hopped on LinkedIn today and dropped some absolutely wild pro-hydrogen talking points, using words like “emotional” and “inspiring” while making some pretty heady claims about the viability and economics of hydrogen. The rant is doubly embarrassing for another reason: the company’s hydrogen trucks are more than 100 million miles behind Volvo’s electric semis.
For some reason – posts about hydrogen always stir up emotions. I think hydrogen (not “instead of” but “in parallel to” electric) plays a role in the decarbonization of heavy duty transport in Europe for three reasons:
If we would go “electric only” we need to get the electric grid to a level where we can build enough charging stations for the 6 million trucks in Europe. It will take many years and be incredibly expensive. A hydrogen infrastructure in parallel will be less expensive and you don’t need a grid connection to build it, putting 2000 H2 stations in Europe is relatively easy.
Europe will rely on import of energy, and it could be transported into Europe from North Africa and Middle East as liquid hydrogen. Better to use that directly as fuel than to make electricity out of it.
Some use cases of our customers are better suited for fuel cells than electric trucks – the fuel cell truck will allow higher payload and longer ranges.
At European Hydrogen Week, I saw firsthand the energy and ambition behind Europe’s net-zero goals. It’s inspiring—but also a wake-up call. We’re not moving fast enough.
What we need:
Large-scale hydrogen production and transport to Europe
A robust refueling network that goes beyond AFIR
And real political support to make it happen – we need smart, efficient regulation that clears the path instead of adding hurdles.
To show what’s possible, we brought our Mercedes-Benz GenH2 to Brussels. From the end of 2026, we’ll deploy a small series of 100 fuel cell trucks to customers.
Let’s build the infrastructure, the momentum, and the partnerships to make zero-emission transport a reality. 🚛 and let’s try to avoid some of the mistakes that we see now while scaling up electric. And let’s stop the debate about “either or”. We need both.
Daimler CEO at European Hydrogen Week; via LinkedIn.
At the risk of sounding “emotional,” Rådström’s claims that building a hydrogen infrastructure in parallel will be less expensive than building an electrical infrastructure, and that “you don’t need a grid connection to build it,” are objectively false.
Next, the claim that, “Europe will rely on import of energy, and it could be transported into Europe from North Africa and Middle East as liquid hydrogen” (emphasis mine), is similarly dubious – especially when faced with the fact that, in 2023, wind and solar already supplied about 27–30% of EU electricity.
Unless, of course, Mercedes’ solid-state batteries don’t work (and she would know more about that than I would, as a mere blogger).
Electrek’s Take
Via Mahle.
As you can imagine, Karin Rådström post generated quite a few comments at the Electrek watercooler. “Insane to claim that building hydrogen stations would be cheaper than building chargers,” said one fellow writer. “I’m fine with hydrogen for long haul heavy duty, but lying to get us there is idiotic.”
Another comment I liked said, “(Rådström) says that chargers need to be on the grid – you already have a grid, and it’s everywhere!”
At the end of the day, I have to echo the words of one of Mercedes’ storied engineering partners and OEM suppliers, Mahle, whose Chairman, Arnd Franz, who that building out a hydrogen infrastructure won’t be possible without “blue” H made from fossil fuels as recently as last April, and maybe that’s what this is all about: fossil fuel vehicles are where Daimler makes its biggest profits (for now), and muddying the waters and playing up this idea that we’re in some sort of “messy middle” transition makes it just easy enough for a reluctant fleet manager to say, “maybe next time” when it comes to EVs.
We, and the planet, will suffer for such cowardice – but maybe that’s too much malicious intent to ascribe to Ms. Rådström. Maybe this is just a simple “Hanlon’s razor” scenario and there’s nothing much else to read into it.
Let us know what you think of Rådström’s pro-hydrogen comments, and whether or not Daimler’s shareholders should be concerned about the quality of the research behind their CEO’s public posts, in the comments section at the bottom of the page.
SOURCE | IMAGES: Karin Rådström, via LinkedIn.
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