CALIFORNIA UTILITIES UNDER THE GUN
LAWSUITS AND FINES HAVE PUT THEM INTO BANKRUPTCY
Pacific Gas and Electric filed for chapter 11 bankruptcy on Jan. 14, 2019. They have been hit with lawsuits that could total 20 billion dollars. They also agreed to compensate local government to the tune of 1 billion dollars. This all stems from wildfires that may have been started by downed power lines in 2017 and 2018.
PG&E is the largest utility in California, there are 3 others in the state.
PG&E was forced into bankruptcy in 2001 when the state passed rules that PG&E must provide all the electricity that was demanded and set the price. In the midst of a drought they lost the use of their hydro-electric generation and were forced to purchase electricity from other providers at high prices. The California Public Utilities commission refused to allow them to raise prices to minimize there losses.
The state is also planning on restricting the use of natural gas in the state.
California has mandated that all new construction must be fitted with solar Panels and Charging stations for electric cars.
In October of this year California's utilities shut off some electric service as a precaution due to heavy winds and dry conditions. The risk of downed trees and possible sparks from downed power lines were just too great.
Now there is outrage that the utilities have caused inconvenience to their customers and the state is attempting to force them to reimburse customers who were affected.
There is much condemnation of the electric utilities that their stock holders are profiting from the company, condemning them for paying bonuses to their management.
It appears the stage is being set to drive the utilities out of business and be the first state to take over the utilities business. It will provide jobs for bureaucrats, but will the state be able to do better than the private sector. They can expect higher prices and reduced service.
The electric providers in this country have invested trillions in infrastructure with no cost to taxpayers. They have provided electric energy at a very modest cost. They should certainly be protected from suits for damages brought about by natural disasters. Does anyone believe that such suits would be tolerated if it was a state run utility?
California should possibly be more concerned with the unsanitary conditions in their cities. The possibility of an epidemic is growing by the day. It is a hazard in the making that could effect the rest of the country.
PG&E is the largest utility in California, there are 3 others in the state.
PG&E was forced into bankruptcy in 2001 when the state passed rules that PG&E must provide all the electricity that was demanded and set the price. In the midst of a drought they lost the use of their hydro-electric generation and were forced to purchase electricity from other providers at high prices. The California Public Utilities commission refused to allow them to raise prices to minimize there losses.
The state is also planning on restricting the use of natural gas in the state.
California has mandated that all new construction must be fitted with solar Panels and Charging stations for electric cars.
In October of this year California's utilities shut off some electric service as a precaution due to heavy winds and dry conditions. The risk of downed trees and possible sparks from downed power lines were just too great.
Now there is outrage that the utilities have caused inconvenience to their customers and the state is attempting to force them to reimburse customers who were affected.
There is much condemnation of the electric utilities that their stock holders are profiting from the company, condemning them for paying bonuses to their management.
It appears the stage is being set to drive the utilities out of business and be the first state to take over the utilities business. It will provide jobs for bureaucrats, but will the state be able to do better than the private sector. They can expect higher prices and reduced service.
The electric providers in this country have invested trillions in infrastructure with no cost to taxpayers. They have provided electric energy at a very modest cost. They should certainly be protected from suits for damages brought about by natural disasters. Does anyone believe that such suits would be tolerated if it was a state run utility?
California should possibly be more concerned with the unsanitary conditions in their cities. The possibility of an epidemic is growing by the day. It is a hazard in the making that could effect the rest of the country.
The new green deal is out to screw all workers and seniors! They are now taxing heating oil in wash. ST.
ReplyDeleteNewsom has now come out and publicly proposed that the state take over this utility.
ReplyDelete