PG&E, in court documents filed last week in its ongoing bankruptcy case, made clear its position that until courts and lawmakers change what the utility sees as unconstitutional state laws, northern Californians will have little choice but to suffer more forced power outages when the wind gusts.
—it’s a legal doctrine that holds utility companies like PG&E to a strict liability standard. It doesn’t matter if a fire starts by accident or negligence, if it happens on the company’s equipment, then the utility is responsible for damages. The application of inverse condemnation to California utilities goes back to court decisions in the 1960s and ’70s.
If PG&E were allowed to recoup fire costs from ratepayers, then all would be constitutional. But that’s not how it works today, according to PG&E’s brief: Among California’s investor-owned utilities, PG&E is most exposed, with half of its 70,000-square-mile territory in high-fire-risk zones, it has had three times more fires per mile of power lines than SCE or SDG&E, according to analyst Hugh Wynne with SSR. It’s unlikely the utility will survive these fires, at least in its current form.
Is there any hope for PG&E shareholders, like Abrams Capital Management, Knighthead Capital and Redwood Capital Management, which reportedly bought shares earlier this year above $6.50 only to ride them down to a current $4.50 ? Probably not. PG&E’s equity market cap of $2.4 billion is overwhelmed by $75 billion in total liabilities, including about $22 billion in long-term debt, according to Factset. The biggest debtholders include PIMCO, with about $4 billion, Elliott Management $1.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
California's blackouts could make fighting climate change even harderEven before PG&E and SoCal Edison began shutting off power to millions of people, California’s electric grid was experiencing rapid changes. These changes will only accelerate as the state tries to fight climate change by cleaning up its energy supply.
Lire la suite »
Silicon Valley congressman: California should take control of PG&E as wildfire blackouts persistShutting off power for millions of people shouldn't be the option, California Rep. Ro Khanna says.
Lire la suite »
Massive new power outages expected across California as powerful winds returnLos californianos se preparan para grandes cortes de energía en todo el estado, ya que las empresas de servicios públicos consideran apagones en medio de los fuertes vientos.
Lire la suite »
The Latest: Branch blown into power line started LA fireSANTA ROSA, Calif. (AP) — The Latest on planned power outages to prevent California wildfires (all times local): 4:45 p.m. Officials say a tree branch striking a power line ignited a...
Lire la suite »
Investigation launched after Nazi swastika flag was seen on display in the window of a California state buildingThe red swastika flag was seen hanging inside an office in the California Department of Corrections and Rehabilitation building at 16th and T Street in midtown Sacramento.
Lire la suite »