Wildfire Linked to PG&E Ravages California Gold-Rush Town

(Bloomberg) -- A wildfire that’s been raging for weeks in California ripped through a town in the mountains north of Sacramento, gutting buildings and forcing residents to evacuate.

The Dixie Fire, which troubled utility giant PG&E Corp. said may have been sparked by one of its power lines, hit Greenville, a gold-rush era town with a population of about 1,100, on Wednesday night. A gas station, hotel and a bar were among the structures burned, according to the Associated Press.

“If you are still in the Greenville area, you are in imminent danger and you must leave now!” the Plumas County Sheriff’s Office said on its Facebook page.

The Dixie Fire, California’s largest blaze this year, comes as the U.S. West is gripped by a historic drought and as climate change fuels extreme weather around the globe. Turkey is battling its worst wildfires in decades. Greece had its hottest day on record this week.

Destruction from the Dixie Fire could be a blow for PG&E, which emerged from bankruptcy last year after sparking a series of wildfires in 2017 and 2018 that killed more than 100 people. The utility said last month that a worker investigating a power outage near the start of the blaze found a tree leaning against a power line. PG&E shares fell as much as 2.9% Thursday.

The Dixie Fire started July 14 and has ripped through more than 275,000 acres (111,000 hectares), destroying 45 buildings, according to the California Department of Forestry and Fire Protection. Another 12,000 buildings are in danger. The blaze is 35% contained.

Firefighters worked much of Wednesday to prevent the flames from entering Greenville, Jake Cagle, an operations sections chief with the U.S. Forest Service, said during a briefing. But the blaze leapt over a road at about 4 p.m. local time and raced toward town.

“There are still a lot of people unfortunately in Greenville that did not evacuate,” Cagle said during the briefing Wednesday. “Right now we can’t protect the structures because we are trying to get people out of there.”

About 50 miles south, firefighters are battling a second fast-moving blaze that broke out Wednesday. The River Fire near the town of Grass Valley has grown to 1,400 acres and is not contained at all.

Firefighters are bracing for a difficult day in California on Thursday. High-wind warnings are in place for much of the state, which means fires will start easily and spread quickly.

“These are not the normal fires anymore,” Cagle said. “It’s just intense fie behavior, and it’s not what we are used to.”

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