I’ll give you one guess where they are going to get the money for all of that.
TUESDAY, JANUARY 29, 2019, 1:10 AM PT
California’s largest power company filed for bankruptcy protection for the second time in two decades on Tuesday, starting an unpredictable process that could take years to resolve and is likely to result in higher rates for the millions of Californians who buy electricity from Pacific Gas & Electric.
PG&E Corp. says a Chapter 11 bankruptcy filing, which will allow the company to continue operating while it comes up with a plan to reorganize its debts, is the only way to deal with billions of dollars in potential liabilities from a series of deadly wildfires, many of which were sparked by the company’s equipment.
It isn’t just California that is going to be paying out the nose for this by any stretch of the imagination.
Let me show you where PG&E gets a whole bunch of the electricity they send to California,
Ya see that string of red dots there in the middle?
Most of those are hydroelectric dams. Big ones.
The Corps of Engineers own and operate the dams.
Then there are these starting about 65 miles East of Portland, on both sides of the Columbia River Gorge.
Washington, Oregon and California sell electricity back and forth to each other.
This is from an article clear back in 2008,
It’s a pretty interesting read, mostly about wind power but it has a lot of information that helps to understand how electricity is shared on the West Coast.
This is a small snippet that is useful for my purposes here.
California and the Northwest have traded electricity for decades. California imports hydropower in the summer; Oregon and Washington take deliveries from California generators in cold winter months.
Wind power is more one-sided: California buys the Northwest’s wind, but not the reverse.
It is a really tangled web to try and unravel , who is buying and selling to who on the West Coast.
All 3 West Coast states have mandates saying that a certain percentage of the electricity they sell has to come from “Renewable Energy Sources”.
That includes hydroelectric, wind, solar, biomass and thermal energy.
Californians are used to paying more for their electricity than Oregonians and Washingtonians do because there are quite a few dams all along the Columbia and the electricity is generated virtually right next door compared to transmitting it clear to California.
There are huge, high tension power lines all over the place around here and some take off and go straight to California.
So PG&E is going to restructure in a Chapter 11 bankruptcy, which means they can continue doing business while all these lawsuits are pending. That means they know they are going to take it right up the ass in the long run.
Since there isn’t any other entity available to replace them, when it is all said and done, they are going to jack up the price of electricity for their customers to cover their costs and will be playing hard ball when it comes to bidding on out of state juice.
If they can buy it cheaper than they can make it at California prices and buy a whole bunch of it then whoever else could have gotten it at a cheaper price is going to see their rates go up too because of the bidding wars that creates.
There is only so much power generation available to satisfy demand.
In other words, the laws of supply and demand are going to be on display for all to see. Every time you open up your electrical bill.
The best part hasn’t even been mentioned yet.
PG&E is going to have to upgrade some of their equipment obviously so these wild fires don’t happen again. We aren’t talking Chump Change here either.
Notice they haven’t bothered to say anything about that.