Here we go again. PG&E filed bankruptcy. The utility’s previous filing for insolvency was in 2001. The purported reason for this latest at-bat in Chapter 11 is the fear of lawsuits from devastating wildfires over the past few years (17 in 2017). Yes, the state has been burning up. A multi-year severe drought hasn’t helped. Exacerbating the problem is rural residents’ preference for suburbia in wildlands. The explosive nature of the fires is kindled by wild land management practices of an eco-crazed state government. In this maelstrom sits a huge uility. Greenie mandates on the utility industry run rampant which divert revenues from day-to-day maintenance and upgrades. With some of the highest utility rates known to man, it’s perplexing that the hardening of its infrastructure is woefully lacking. The whole situation screams of a collapse waiting to happen. Well, here we go again.
Please watch the Wall Street Journal video on the infrastructure shortcomings of the utility.
RogerG