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I don’t believe the PUC will allow PG&E to have a guaranteed rate of return on undergrounding. My understanding is that ratepayers are the ones who are going to
by jdavis703 5y ago
I don’t believe the PUC will allow PG&E to have a guaranteed rate of return on undergrounding. My understanding is that ratepayers are the ones who are going to be funding this project, not the shareholders.
So yeah PG&E gets to avoid liability and also sell more electricity (there’d be no more PSPS events). But they won’t be able to charge higher transmission rates beyond the cost of undergrounding.
- dehrmann 5y ago> My understanding is that ratepayers are the ones who are going to be funding this project, not the shareholders. I think that's the deal, though. Utility investors buy utilities knowing their rates are regulated and there's limited growth in exchange for stability. When the cost of providing electric changes, whether it's because wholesale prices increase or a new cost emerges (burying power lines), ratepayers are on the hook. The key is allocating the costs correctly. Burying major transmission lines (if this is even needed) should be shared, but local lines need to be paid for by local communities. Owning a cabin is fine, I just have no interest in subsidizing its power because it's in a fire risk area.
- lazide 5y agoIt’s a cost plus model.