News
PG&E Faces $225 Million Lawsuit for Dixie Fire Damages
A coalition of timber companies has filed a lawsuit against Pacific Gas & Electric Co. seeking approximately $225 million in damages from a 2021 fire sparked by a utility power line.
The complaint, filed on Wednesday by Oregon-based Collins Pine Co. and six affiliated timber businesses with property in the Collins Almanor Forest in Plumas and Tehama counties, alleges that PG&E failed to properly manage the forest and electrical equipment to prevent the devastating Dixie fire, resulting in massive financial damages for the businesses.
A 2022 investigation by the California Department of Forestry and Fire Protection found that the Dixie fire, the second-largest in California history, was caused by a tree contacting electrical distribution lines owned and operated by the utility company.
The timber companies claimed that the fire, which burned through nearly 1 million acres in Butte, Plumas, Shasta, Lassen, and Tehama counties in the summer and fall of 2021, incinerated approximately 55,000 acres of their property, including commercial-grade timber, trees of various species and ages (some over 200 years old), roads, structures, bridges, culverts, and many research plots.
Collins Pine Co. claimed that the fire also burned an additional 500 acres of land for which it owns timber rights, and its mill suffered significant damage with the timber supply being ruined.
The total damages amount to more than $225 million combined.
The complaint, filed in San Francisco Superior Court, alleges that PG&E negligently, recklessly, and willfully failed to properly inspect, repair, maintain, and operate its electrical equipment and surrounding vegetation, including hazardous trees.
“Had Defendants acted responsibly, the Dixie Fire could have been prevented,” the companies stated.
PG&E spokesperson JD Guidi did not comment on the allegations but mentioned that the company is aware of the lawsuit being filed.
The Dixie fire burned through Northern California for over three months and is considered one of the state’s most destructive blazes. Drought conditions and changing wind patterns fueled the fire to escalate into a massive inferno that ravaged several rural counties, destroying the town of Greenville and enveloping the region in thick smoke.
In January, the California Public Utilities Commission fined PG&E $45 million for its involvement in the fire, which was linked to a Douglas fir tree that fell and struck energized conductors owned and operated by the utility company.
This penalty is part of a series of fines, lawsuits, and legislative actions aimed at holding PG&E accountable for various fires sparked by its equipment.
Other fires attributed to PG&E’s equipment include the Zogg fire in 2020, the 2019 Kincade fire, and the infamous Camp fire in 2018, California’s deadliest wildfire that consumed 153,000 acres and claimed 85 lives, many in Paradise.
In 2019, the utility company filed for bankruptcy to shield itself from potential liabilities amounting to tens of billions of dollars.
During the same year, state legislators passed a bill establishing a wildfire recovery fund of over $21 billion for victims.
News
Is now the right time to invest in gold as prices have cooled?
The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.
This lull in gold’s price may represent an investment opportunity.
In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?
Compare your gold investment options among leading brokers now.
Gold prices have cooled. Should you buy in now?
With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:
Prices may rise again
If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.
But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.
Add gold to your portfolio now before prices have a chance to rise.
You may be able to make a quick profit
Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.
Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.
There are other benefits of investing in gold
There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:
- Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
- Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.
The bottom line
Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.
-
News2 weeks ago
Juno discovers massive lava lake on Io
-
News2 weeks ago
Kevin McCarthy, former House Speaker, seeks revenge
-
News2 weeks ago
Possible Future Colleague of Trump: David Lammy, a Close Associate of Obama
-
News3 weeks ago
Knowing the Magnetic Field of an Exoplanet’s Star is Essential to Determining the True Size of the Exoplanet
-
News3 weeks ago
Additional Perspectives on the 2024 Eclipse: Views from the Moon and Earth’s Orbit
-
News3 weeks ago
House speaker receives additional request from GOP member to resign or be ousted
-
Entertainment2 weeks ago
Bethenny Frankel reveals that her mother Bernadette Birk passed away from lung cancer
-
News2 weeks ago
Is now the right time to invest in gold as prices have cooled?