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It's a regulated utility so the free market doesn't really come into it, fundamentally regulated rates are set by CPUC. These rates need to go up to allow more
by Mvandenbergh 8y ago
It's a regulated utility so the free market doesn't really come into it, fundamentally regulated rates are set by CPUC.
These rates need to go up to allow more a more aggressive vegetation control schedule. Sure, I agree with that, and I agree that individual power consumers should pay for that. However the way I think they should pay is precisely through that rate mechanism.
What I do not think is efficient is putting the entire consequential damages of a fire caused by an electrical fault on the utility. That is only an effective mechanism to the extent that the fire damage is preventable by them. While they can reduce the chance of this happening through stepping up vegetation clearance and they probably should, it is not possible to reduce it to zero and given the size of the network there may well be fires every year even in the best possible case.
To say in the context of climate change, forestry policy, the location of houses in areas that face these fire risks, and the construction of those houses of flammable materials that PG&E "caused" this fire and the previous ones and should therefore bear the damages seems strange to me.
- cobookman 8y agoAren't PGE rates already some of the highest in the Country?
- deleted 8y ago[deleted]
- onetimemanytime 8y agoThey can go higher...and they will. The state can always issue bonds, so creditors always get paid. CA isn't about to default for a few tens of billions. The biggest problem is zoning. OK, PGE might caused this, but odds are that within a decade it would have burned anyway. A camp fire, a faulty car exhaust on late August, fire works and so on. ZONING is the real issue now. You know that the area is prone to fires and people build houses in the mountains, surrounded by 100 feet trees?
- euyyn 8y agoThe size of the network also increases the number of their paying consumers, so I don't think that's a good excuse for them. Two Californias side by side would have half the mean time between fires, but also twice the budget to prevent them better.
- mixmastamyk 8y agoIt’s not just about brush clearance, some of their equipment was found faulty and unmaintained, further implicating them.