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Ancient Gaseous Emanation
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Discussion Starter · #1 ·
Chriss Street
July 21, 2019


California’s proposed $26 billion bailout of bankrupt PG&E’s wildfire liability will push the state’s average residential electric rates to 70 percent higher than national average.

California Gov. Gavin Newsom signed a bill on July 18 that supposedly will share equally between Pacific Gas & Electric (PG&E) shareholders and its customer the estimated $21 billion liability for 2017 and 2018 wildfire losses. The deal is also contingent on PG&E and the state’s other two investor-owned utilities, Southern California Edison and San Diego Gas, contribute another $5 billion to cover losses.

According to the latest U.S. Energy Information Agency report, California’s residential electric rates currently average 18.05 cents per kilowatt hour (kwh) versus a national average for the other states of 13.16 cents / kwh. Despite already being 37 percent higher than the national average, the bailout will push rates up to about 22.22 cents / kwh, or almost 70 percent higher than the national average.

PG&E is the seventh largest U.S. electric utility. The company has 106,681 circuit miles of electric distribution lines, 18,466 circuit miles of interconnected transmission lines, and 24,000 employees to service 5.4 million customer accounts for 16 million residents.

A recent Wall Street Journal investigation found that PG&E delayed repairs to older transmission lines by ranking the upgrades as low priority compared to other work like substation upgrades, according to a review of federal regulatory filings. The Journal found that PG&E in 2017 identified the need for new steel towers and transmission line repairs to prevent “structure failure resulting [in] conductor on ground causing fire.”

PG&E issued a statement pledging to continue “working with the new California Public Utilities Commission President, the governor, and all stakeholders on shared solutions to California’s ever-growing risk of wildfire,” while “keeping customer rates and bills as low as possible.”

Gov. Newsom’s bailout plan requires San Diego Gas & Electric and Southern California Edison must approve their willingness to participate. The bailout plan also requires PG&E must exit bankruptcy by next June and meet a series of safety requirements, despite providing a long-term funding mechanism for up to $20 billion in repairs.

Although it was assumed the other utilities would participate, Southern California Edison is now requesting that California approve a spike in the return on equity to above 17 percent to "compensate investors for the higher risks associated with uncertain state policies for utility cost recovery and liability resulting from California's devastating wildfires."




https://www.americanthinker.com/blo...ic_rates_70_higher_than_national_average.html
 

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Ancient Gaseous Emanation
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Discussion Starter · #2 ·
Gov. Newsom’s bailout plan requires San Diego Gas & Electric and Southern California Edison must approve their willingness to participate. The bailout plan also requires PG&E must exit bankruptcy by next June and meet a series of safety requirements, despite providing a long-term funding mechanism for up to $20 billion in repairs.
I do not believe any of this can happen, making the governor's plan nothing but a noisy misdirection.
 

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Grand Imperial Poobah
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So PG&E customers will end up paying for the mis-deeds of the state and PG&E. Total 100% Grade A BS.
 

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Did anyone really think that anyone other than the taxpayers would foot the bill? I wonder how much PG&E contributed to Gavin's campaign? and where did the number 26 billion come from? I suspect the real number is half that so PG&E shareholders will lose nothing.
 

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Ancient Gaseous Emanation
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Right now in bankruptcy court, PG&E bondholders are attempting to take control away from PG&E shareholders. Both are made up of huge hedge funds. They propose, along with a new CEO and Board of Directors, pumping enough money into PG&E to pay a negotiated settlement to all those adversely effected by recent (2016-2019) PG&E caused fires, at the cost of severely decreased dividend payments. They believe a properly run PG&E can become a money maker in the future.
 
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Really, what "honestly run" utility in a state with market size like Kalifornia, would not be profitable?

It's always the blood-sucking greed-heads and politicians who degrade everything.
 

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What are your rates in Ca? I don't believe 18.05 cents a KWH. From what I've gathered...it's currently 28 cents per KWH in So. Cal. Edison. City of LA jacked their rates up to match SCE.

They're all a bunch of crooks. Everybody knew the Enron debacle was going to be just that... a debacle. Everybody knew.

This is just an excuse to raise rates more. That's all.
 

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Right now in bankruptcy court, PG&E bondholders are attempting to take control away from PG&E shareholders. Both are made up of huge hedge funds. They propose, along with a new CEO and Board of Directors, pumping enough money into PG&E to pay a negotiated settlement to all those adversely effected by recent (2016-2019) PG&E caused fires, at the cost of severely decreased dividend payments. They believe a properly run PG&E can become a money maker in the future.
Not all hedgefunds. Calpers and similar pension funds have always been a huge stakeholder as well. Also remember a lot of little old ladies and similar like to own utility stocks so the implication that only rich or folks or other big mney funds are the shareholders is disingenuous. My mom just passed away and the majority of her stocks were various utilities.
 

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What are your rates in Ca? I don't believe 18.05 cents a KWH. From what I've gathered...it's currently 28 cents per KWH in So. Cal. Edison. City of LA jacked their rates up to match SCE.

They're all a bunch of crooks. Everybody knew the Enron debacle was going to be just that... a debacle. Everybody knew.

This is just an excuse to raise rates more. That's all.
You do know that LA get a lot of their power from Hoover Dam at 1934 rates?
 

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Working for a NV electric utility for over 20 years
 

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PG&E stock down .14 to close at 17.65. It had a 52 week high of 49 and a low of 5. The shareholders are taking it in the shorts which includes all the employees with a 401k. If they were thinking of retiring, they may need to work a few more years.
 
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