SMITHEREENS: Reflections on Bits & Pieces
PG&E Profiteering
California Public Utility Commissioner Michael Picker and CPUC spokeswoman, Terrie Prosper recently laid down some bad news: If PG&E is allowed to burden customers with the estimated $30 billion in liability costs for the 2017 wildfires linked to the company's equipment failures, we can expect average utility rates to rise by $25 per month.
Here's why: In the aftermath of the company's declaration of bankruptcy, many PG&E stockholders are starting to move their investments elsewhere. So, in order to "encourage investors" to provide PG&E with more capital, the CPUC has proposed raising the guaranteed return on equity to stockholders from 10.25% to 16%. To many, it looks like more evidence that the CPUC is in the pocket of PG&E.
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