Typically in markets like CA and TX you will have a rate case go to the public utility commission. I'm more familiar with Texas' approach (it was a data source for my dissertation); the idea is to let the companies charge enough to cover reasonable costs.
No, it won't, because PG&E doesn't have the money to do this, and the company is already majority-owned by the PG&E Fire Victim Trust after emerging from bankruptcy.
There are no rich shareholders to foist the costs on. No investors are going to pay tens of billions of dollars, more profit than PG&E generated over several decades, to pay for 10% of the electric wires to be buried. If there were any investors on the hook for this, they would simply declare bankruptcy and walk away.
The only option here is that the costs are paid by ratepayers, or taxpayers. There is no other option available.
I can’t find it now but a while back someone posted the meeting minutes from the CA PUC review of PG&E’s budget. It had stuff like “request to replace chain link fence for $175k - denied” and it was a 1,000+ page document.
PG&E has to get approval for their spend from the PUC and for any rate hikes.
bcrosby95|4 years ago
In practice I have no clue how it works out though.
tomrod|4 years ago
black_puppydog|4 years ago
jlmorton|4 years ago
There are no rich shareholders to foist the costs on. No investors are going to pay tens of billions of dollars, more profit than PG&E generated over several decades, to pay for 10% of the electric wires to be buried. If there were any investors on the hook for this, they would simply declare bankruptcy and walk away.
The only option here is that the costs are paid by ratepayers, or taxpayers. There is no other option available.
refurb|4 years ago
PG&E has to get approval for their spend from the PUC and for any rate hikes.