Swordsmyth
11-01-2019, 11:31 PM
California's governor on Friday threatened a possible takeover of the troubled utility blamed for sparking deadly wildfires across the state with its outdated equipment unless it can emerge from bankruptcy ahead of next year's wildfire season with a plan focused on safety.Gov. Gavin Newsom called all sides to a meeting early next week, saying he would personally try to mediate a solution involving Pacific Gas & Electric.
But if an agreement can't be reached, Newsom said, "then the state will prepare itself as backup for a scenario where we do that job for them."
PG&E has come under more scrutiny in recent weeks as it cut off power to millions of people to avoid a repeat of last year's deadly fire season.
The shutoffs have angered residents, businesses and local governments, who say the company has done a poor job of communicating.
"This is not the new normal," Newsom said. "There are things that can be done immediately and will be done immediately."
It's unclear how the state could take over PG&E in the event it does not meet the June 30th deadline. But the governor's office pointed to General Motors as an example. The automaker filed for bankruptcy in 2009, and the federal government purchased a controlling stake in the company. The government later sold its shares once the company was on solid footing.
"That kind of a move would give the state a lot of control over the strategic direction that PG&E takes without getting it into the nitty gritty of running the day to day," said Michael Wara, director of the Climate and Energy Policy Program at the Woods Institute for the Environment at Stanford University.
Local governments, including San Francisco, have offered to purchase portions of PG&E's equipment for $2.5 billion so it could operate parts of the power system on its own. Asked if taxpayers would buy the company, Newsom said: "We're scoping all of that."
"It's not writing a check," Newsom said. "This is not plan 'A,' but it is a plan. We would be irresponsible not to scope that plan. So we're not going to sit back and hope and hope an expectation that everything else works out."
More at: https://news.yahoo.com/california-seeks-quick-fix-utility-202821710.html
But if an agreement can't be reached, Newsom said, "then the state will prepare itself as backup for a scenario where we do that job for them."
PG&E has come under more scrutiny in recent weeks as it cut off power to millions of people to avoid a repeat of last year's deadly fire season.
The shutoffs have angered residents, businesses and local governments, who say the company has done a poor job of communicating.
"This is not the new normal," Newsom said. "There are things that can be done immediately and will be done immediately."
It's unclear how the state could take over PG&E in the event it does not meet the June 30th deadline. But the governor's office pointed to General Motors as an example. The automaker filed for bankruptcy in 2009, and the federal government purchased a controlling stake in the company. The government later sold its shares once the company was on solid footing.
"That kind of a move would give the state a lot of control over the strategic direction that PG&E takes without getting it into the nitty gritty of running the day to day," said Michael Wara, director of the Climate and Energy Policy Program at the Woods Institute for the Environment at Stanford University.
Local governments, including San Francisco, have offered to purchase portions of PG&E's equipment for $2.5 billion so it could operate parts of the power system on its own. Asked if taxpayers would buy the company, Newsom said: "We're scoping all of that."
"It's not writing a check," Newsom said. "This is not plan 'A,' but it is a plan. We would be irresponsible not to scope that plan. So we're not going to sit back and hope and hope an expectation that everything else works out."
More at: https://news.yahoo.com/california-seeks-quick-fix-utility-202821710.html