And why not? If they get hit with a lawsuit, they can just jack up the rates or if citizens get too noisy, just shut them off for a week or two and show them who's the boss here. It's not like the customers can go elsewhere, and they are guaranteed 10% return on the money by the state by ROE rate arrangements, whatever happens. How many other "private" companies do you know that are guaranteed to make money no matter what?
They are basically being penalized for being the straw that broke the camel's back.
Probably better maintenance would have helped some, but it's not like they bear all the blame for the destruction caused by the fire.
While anyone can start a wildfire, they are a large actor, which causes them. They make profit and could invest money to reduce their part in it, but as long that is an external cost, there is no economic motivation. That's not penalisation, it's economics.
Instead, the counterposition here seems to be that they should bear none of the blame, that any liability on their part is an injustice, and that refusing preventative maintenance and literally unplugging regions at risk is somehow an acceptable outcome. And that seems insane.
If they can't provide the service they're contracted to provide, they need to be regulated to be sure they do. The market has failed (and this isn't the first time PG&E got caught playing ridiculous games with regulators at the expense of customers, I was in California during the electricity crisis of 2000).
I can accept that perhaps some other parties should share some of the liability, but it seems completely unsupportable to claim that PG&E has no control over these risks and should be absolved of all responsibility.
We shouldn't have to choose between having blackouts or having wildfires. I can't think of any other first-world country where that happens.
I'm unsure but I think a lot of the issue is that feeder lines are often run through unfortunate areas. Fire prone, subject to high winds, and difficult to reach quickly. One suspects that under grounding is likely impossible. Instead they would need to reroute the lines. Then there are all the diffuse rural suburbs.