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AFAIK PG&E works on "guaranteed profit" model, i.e. they can raise prices if current prices do not cover for expenses plus predetermined profit margin. So suing
by smsm42 7y ago
AFAIK PG&E works on "guaranteed profit" model, i.e. they can raise prices if current prices do not cover for expenses plus predetermined profit margin. So suing it, unless it's currently hugely profitable way beyond the margin (which AFAIK it is not) would only end up in "suing ourselves" anyway.
- kevingadd 7y agoYeah, to have a real impact on the flow of money we'd probably need to penalize executives somehow to change behavior... and they'd just bail on the company or deflect blame somehow, like we saw in that VW emissions scandal. On the bright side the lawsuits have impacted PG&E's stock prices which does make it easier to take the company over, but the loss of power + increase of prices is not an ideal outcome.
- deleted 7y ago[deleted]
- bcrosby95 7y agoThis isn't completely correct - despite the "guaranteed profit" model, PG&E always needs approval to increase rates. Whether or not CPUC would fight those rate hikes is another question. There are some organizations that probably would though.