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PG&E is publicly traded (PCG.SG), the debate in the capitol is how much those stock holders should pay (through reduced dividends) vs. ratepayers. PG&E is maki
by greenburger 8y ago
PG&E is publicly traded (PCG.SG), the debate in the capitol is how much those stock holders should pay (through reduced dividends) vs. ratepayers.
PG&E is making the argument that the cost to too high to be paid off by investors. If they state allows the cost to be fully covered by rate payers (keeping profits margins unchanged) what is the incentive for PG&E to take actions that reduce fire risks in the future?
This issue has come up in the past as well, e.g. the San Bruno pipeline explosion and what resulting safety upgrades should be financed though state approved rate increases vs. investors (reduced profits)
- stickfigure 8y agoI think you miss my point. PG&E may be publicly traded, but it's not subject to market forces. It's a government-granted monopoly in the strictest literal terms. Penalizing the company or their shareholders doesn't change the market landscape; it doesn't improve the position of competitors or risk bankrupting the company. PG&E's profit (dividend) is effectively decided on by a public committee. They pick how much profit the company gets on a cost-plus basis. They could pick any number at any time; they could certainly pick zero. Let's say these bad events keep happening and we just keep the number at zero indefinitely. What changes?