Friday, September 03, 2021

CRIMINAL CAPITALI$M
First flames, then fees: Tahoe evacuees report price-gouging

By SAM METZ and SCOTT SONNER

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FILE - In this Aug. 30, 2021, file photo, vehicles idle in bumper-to-bumper traffic after a wildfire evacuation order in South Lake Tahoe, Calif. The threat the Caldor Fire poses to Lake Tahoe residents is exposing differences between laws against price-gouging in Nevada and California. Evacuees are reporting rideshare companies quoting trips from area ski resorts to the Reno-Tahoe International Airport at eight times the normal rate and hotels on the Nevada side of the resort town hiked room rates to $449 per night on Tuesday, Aug. 31, 2021. (AP Photo/Sam Metz, File)


STATELINE, Nev. (AP) — As fearful Lake Tahoe residents packed up belongings and fled a raging wildfire burning toward the California-Nevada border, some encountered an unexpected obstacle: price gouging.

A rideshare company quoted a fee of more than $1,500 to be transported from the smoke-choked ski resort at Heavenly Valley to the safety of Reno-Tahoe International Airport, about eight times the going rate. A Nevada hotel-casino outside the evacuation order zone advertised a two-night stay for $1,090.72, almost four times the midweek rate offered a day earlier.

Reports of price-gouging routinely emerge during natural disasters and won newfound attention early in the pandemic, when some businesses tried to capitalize on panic amid demand for toilet paper and hand sanitizer.

While there is no federal law that bans it during emergencies, at least a dozen statehouses have addressed price-gouging since last year, including Nevada and California, where Gov. Gavin Newsom signed a bill banning the practice last September.

Unlike California though, a Nevada price-gouging prohibition signed by Gov. Steve Sisolak in June doesn’t take effect until October. Its start date limits officials from policing the issue and taking action beyond promising to monitor it.

“We hope that good merchants are not going to partake in price gouging,” Sisolak said Tuesday in Carson City, where ash particles from the Caldor Fire rained from the sky. “They’re going to partake in trying to make their goods available to the widest group of people they possibly can.”

Officials in both states publicly warned businesses in the shadow of the massive blaze against price-gouging, with California Attorney General Rob Bonta, his Nevada counterpart Aaron Ford and U.S. Rep. Mark Amodei asking consumers to report incidents to their offices.

Ford’s office said Wednesday it hadn’t received any specific complaints. Bonta’s said the information was confidential.

The Caldor Fire spanned more than 328 square miles (850 square kilometers) and was 25% contained Thursday. On Monday, flames raced so quickly toward the California resort city of South Lake Tahoe that officials ordered a mass evacuation of all 22,000 residents. People across the state line in Douglas County were ordered to leave a day later.

The Montbleu Resort, Casino and Spa — a towering 438-room Nevada hotel just blocks from the California line — began offering discounts for evacuees, $60 rates for firefighters and first responders, and free lodging for its employees.

For everyone else, it hiked room prices Tuesday from $120 to $450 per night before taxes and fees.

Tim Tretton, the resort’s vice president-general manager, said in a statement Wednesday it did so to deter tourists from traveling near the wildfire and to keep rooms available for evacuees. The company planned to pay back the difference to those who booked at the higher cost, he said.

“We did not and do not plan to collect on these rates, and have provided reimbursements or reductions as appropriate,” Tretton said.

Leaving South Lake Tahoe also got pricier for some travelers.

A 60-mile (96-kilometer) Lyft XL ride from the resort town to Reno normally costs roughly $200. On Tuesday, it rose nearly eightfold as people rushed to beat the flames.

A furious resident shared a screenshot of the rates on Twitter, showing $1,535 for a minivan or SUV for a minimum of five passengers. SFGate reported the costs had dropped back to $230 midday.

Lyft and Uber said in statements Wednesday that price jumps triggered automatic caps as demand soared around South Lake Tahoe amid emergency evacuations. Lyft said it was “reviewing and adjusting fares for certain riders who were impacted in the region.”

“When ride requests outpace the number of drivers on the road, prime-time pricing — elevated fares designed to get more drivers to high-demand areas — is automatically enabled,” the company said. “When we realized how the evacuation order was affecting Lyft prices, we immediately implemented a cap and ultimately suspended prime-time pricing.”

Uber said fares in some places were capped Monday after it identified a public state of emergency. It enacted a second cap Tuesday.

Gas stations around evacuation zones did not appear to have raised prices significantly this week.

Puerto Rico, Washington, D.C., and 39 states have regulations limiting price gouging during emergencies, according to the National Conference of State Legislatures.

Mississippi, parts of which have been battered by Hurricane Ida, strengthened penalties in its price gouging law in 2006, months after Hurricane Katrina left a wide swath of destruction and supply shortages caused long lines for gasoline during the first weeks after the storm.

North Carolina’s attorney general filed a price-gouging lawsuit last week against a gas station that hiked prices for mid-grade and premium gas to $9.99 per gallon after a ransomware attack forced the Colonial Pipeline — the United States’ largest fuel delivery system — to shut down.

Nevada’s anti-price gouging law passed in May on a party-line vote, with Democrats in favor and Republicans opposed. The law will ban price-gouging in areas where the governor has declared a state of emergency.

California law generally prohibits businesses from raising prices by more than 10% following a state or local emergency declaration.

“If you see price gouging — or if you’ve been a victim of it — I encourage you to immediately file a complaint with my office online at oag.cag.gov/report, or contact your local police department or sheriff’s office,” Bonta said.

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Sonner reported from Reno. Associated Press writers Olga Rodriguez and Jocelyn Gecker in San Francisco, Michelle L. Price in Las Vegas, and Emily Wagster Pettus in Jackson, Mississippi contributed to this report. Metz is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

Lake Tahoe resort city OK for now, wildfire fight not over

By SAM METZ and JANIE HAR

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A firefighter lights a backfire to stop the Caldor Fire from spreading near South Lake Tahoe, Calif., Wednesday, Sept. 1, 2021. 
(AP Photo/Jae C. Hong)

SOUTH LAKE TAHOE, Calif. (AP) — Better weather on Thursday helped the battle against a huge California wildfire threatening communities around Lake Tahoe, but fire commanders warned firefighters to be prepared for ongoing dangers.

Strong winds and dry conditions that drove the Caldor Fire east through high elevations of the Sierra Nevada for days faded, sparing for now the largest city of a recreational gem that straddles the California-Nevada state line. Thousands were forced to flee South Lake Tahoe earlier this week.

“I feel like we are truly the luckiest community in the entire world right now. I’m so incredibly happy,” said Mayor Tamara Wallace, who evacuated to Truckee, California.

But wind gusts were likely in some areas, and the forest was still extremely dry, officials warned. The fire is pushing on several fronts, threatening multiple communities.

Still, the mood was one of optimism, given the speed with which the fire grew earlier in the week. Flames raced so quickly toward the resort city that officials ordered a mass evacuation of all 22,000 residents on Monday before ordering those across the state line in Douglas County, Nevada, to leave a day later.

“It’s finally a chance to take a breath,” said Clive Savacool, chief of South Lake Tahoe Fire Rescue. “It’s a breath full of smoke. Nonetheless, I think we’re all breathing a little bit easier and we feel like we’re making some progress.”

Russ Crupi, who two days ago was arranging sprinklers around his mobile home park in South Lake Tahoe just miles from the fire line, had turned off the water for now, feeling confident his neighborhood was no longer under threat. The nearby mountains, cloaked in smoke for most of the week, had become visible.

“I’m just happy they stopped it. It looked close,” he said.

The Caldor Fire spanned more than 328 square miles (850 square kilometers) and was 25% contained Thursday. Its northeast tip was about 3 miles (5 kilometers) south of South Lake Tahoe and nearing the California-Nevada state line, where visitors like to hit the casinos in Stateline.

About 15 million people visit Lake Tahoe every year for hiking, snowboarding, water sports and gambling. The possibility that wildfire might rip through the international destination alarmed those who have vivid memories of vacationing at Tahoe.

California has experienced increasingly larger and deadlier wildfires in recent years as climate change has made the West much warmer and drier over the past 30 years. Scientists have said weather will continue to be more extreme and wildfires more frequent, destructive and unpredictable. No deaths have been reported so far this fire season.

Fire crews from around the country joined in the fight against the fire, which broke out Aug. 14 southwest of the Lake Tahoe area, chasing residents from more remote areas of El Dorado County. Officials said that at least 622 homes, 12 commercial properties and 177 minor structures have been destroyed, though the tally is incomplete because many areas are not safe to be surveyed.

The Caldor Fire still threatened at least 33,000 more homes and structures. On Wednesday, firefighters were ferried by boat to protect cabins at nearby Echo Lake, while three of the region’s largest ski resorts, Heavenly, Kirkwood and Sierra at Tahoe, brought out snow-making devices to hose down buildings.

Jonathan Pierce, a spokesman with the California Department of Forestry and Fire Protection, said crews are chasing spot fires and trying to keep flames away from populated areas.

There was no timeline for when residents might return.

South Lake Tahoe can easily accommodate 100,000 people on a busy weekend, but on Thursday, just before the Labor Day weekend, it was eerily empty. Thick smoke made it difficult to see across the street, said Savacool, the fire chief.

“I’s really just a dead, dead town and it’s got an apocalyptic feel with garbage strewn about from the bears,” he said.

President Joe Biden on Wednesday issued a federal emergency declaration and ordered federal assistance to supplement state and local resources for firefighting efforts and relief for residents in four counties affected by the fire.

“I’ve seen these firefighters up close. Their courage is astounding, and they’re some of the bravest people I’ve ever known — and I’ve known a lot of them,” he said from the White House on Thursday, addressing is administration’s response to Hurricane Ida.

More than 15,000 firefighters were battling dozens of California blazes, including another monstrous blaze, the Dixie Fire about 65 miles (105 kilometers) north. It is the second-largest wildfire in state history at about 1,340 square miles (3,480 square kilometers).

The weeks-old fire was 55% contained. As of Thursday, officials said it had destroyed 688 homes, eight multi-unit residences, 139 commercial properties and hundreds of minor structures.

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Har reported from San Francisco. Associated Press writers Jocelyn Gecker in San Francisco and John Antczak in Los Angeles contributed to this report. Metz is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

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