PG&E help! [RE-wrenches]

[John Raynes]

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Jeff,

I went there with my instrumentation consulting business (pre-solar) a few 
years ago, because the lawyers for my corporate clients were throwing this 
into the consulting contracts that they wanted me to sign.  In addition to 
solar PV, I work with measurement instrumentation, light industrial 
controls, and software.  I was paying premiums of about $4K/year for basic 
one person coverage of $2M per year, $1M per incident.  And I had to take 
all exams on writing and negotiating contracts, etc.

After 2-3 years, I just dropped it and decided that I would walk away from 
any work that required this.  Occasionally it comes up in contracts, under 
"indemnification" clauses; nowadays, I just tell the company to take those 
clauses out or I won't do business with them, and they usually agree 
to.  The corporate lawyers are such weasels - the companies already have 
contractor liability coverage in their own insurance policies, but they put 
this crap in their standard agreements anyway.

I would fight this if at all possible.  It might be harder for a get an 
overly bureaucratic utility to change their contracts, since as we all know 
it's hard to get them to agree to change anything.  But this E&O insurance 
isn't worth the money and hassle IMHO.  It's intended for architects, 
mechanical and electrical consulting firms that design buildings and 
bridges, etc. and not for small businesses like the average wrench 
operates.  On the other hand, for a commercial/large systems solar business 
like Powerlight, it probably would be warranted (and would be much more 
expensive as well).

There are liability concerns here that I don't deny, since we are dealing 
with power generation and transmission equipment that can kill people in an 
instant and start building fires.  But this isn't the way to go, unless the 
intent is to squeeze out the small operators like us.

Nobody's willing to assume risk anymore, anywhere.  Sigh.


John Raynes
Principal Engineer
Raynes Engineering, Inc./RE Solar
Sandy, UT

Phone:  801-569-2400
email:          john at raynes.com
Web site:       www.raynes.com



At 08:37 PM 8/29/02 +0000, you wrote:
>Just finished a 54 kW install in Oakland and finding this requirement for 
>additional insurance for me the "Applicant" above and beyond the 
>requirements for the client. This seems to fly in the face of the State 
>net-metering laws and Rule 21 of no additional insurance. Here is a snip 
>from PG&E:
>
>"Please understand that this is not PG&E's specific requirement but a
>requirement that was created as a result of AB 970 / CPUC D.01-03-073.  It 
>was established by the State Wide Self-Generation Incentive Program 
>Working Group that is lead by So Cal Gas & Electric Company."
>
>I cannot find this citation. Specifically, they are requiring us to have 
>Errors & Omission Insurance, that we do not carry. How many of you do?
>
>Has anyone run into this with a >30 kW Utility/CPUC Grant?  Is there a way 
>around it? I suppose we could buy a short term policy and cancel after we 
>get paid, but not if it is unnecessary, I don't want to add the expense 
>and hassle. Can we self-insure? PG&E is looking into the latter.
>
>I appreciate any suggestions or help that anyone can offer!
>
>-Jeff Oldham
>
>
>
>

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