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PG&E files for bankruptcy. Here's why that could mean bigger electricity bills
PG&E Corp., which owns California's largest electric utility, filed for bankruptcy protection Tuesday in anticipation of huge legal claims, starting an unpredictable process that could take years to resolve and is likely to result in higher energy bills for the millions of Californians who depend on Pacific Gas & Electric for power.
PG&E said a Chapter 11 bankruptcy filing, which allows the company to continue operating while it comes up with a plan to pay its debts, was 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 power grid infrastructure.
"Through this process, we will prioritize what matters most to our customers and the communities we serve — safety and reliability," interim Chief Executive John R. Simon said in a statement. "We believe that this process will make sure that we have sufficient liquidity to serve our customers and support our operations and obligations."
Energy experts say PG&E's rates probably will increase when the utility emerges from Chapter 11 protection because bankruptcy inevitably makes it more expensive for a company to borrow money and creates large legal and other bankruptcy-related costs. The utility passes such expenses along to its customers.
"It's almost impossible to see a way out of this that doesn't have some short-term cost increases," Ralph Cavanagh, co-director of the energy program at the Natural Resources Defense Council, said in a recent interview.
(Score: 0) by Anonymous Coward on Wednesday January 30 2019, @09:52PM (2 children)
It's a great idea that will never happen.
Who would bother running a company they could not leach money from
(Score: 2) by DannyB on Thursday January 31 2019, @02:45PM (1 child)
We live in a capitalist system. There is nothing wrong with owning a company. Or having it publicly tiraded. There is nothing wrong with it being profitable. There is nothing wrong with enjoying the blessings of that profitability.
Where something wrong occurs is when the business is run in a way that is against the public interest and common good. Regulations are needed to put constraints on just how far business can go. Pollution. Chemical, Toxic, Biological or Radioactive waste. Corrupting politicians. False advertising. Misleading, deceptive and confusing product marketing. Those are just some examples of reasonable constraints.
The lower I set my standards the more accomplishments I have.
(Score: 2) by All Your Lawn Are Belong To Us on Thursday January 31 2019, @06:00PM
Well of course there is nothing wrong with companies being publicly tiraded! That's what's happening here.
There may even be nothing wrong with them being publicly traded. After all, what could be better than gaining Utility from a Utility?
This sig for rent.