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Yes, the fact that PG&E rejected the offer is why I adjusted the figure for Walnut Creek's population and then increased it by 50%. The fact is muni borrowing i

Yes, the fact that PG&E rejected the offer is why I adjusted the figure for Walnut Creek's population and then increased it by 50%. The fact is muni borrowing is cheap - even if PG&E charged $1 billion we could finance that for about six cents per kilowatt hour. I don't think the CPUC will let them get away with "we won't sell at any price" - I think the regulators would force them to sell at some price.

abeppu 2y ago
> I don't think the CPUC will let them get away with "we won't sell at any price" - I think the regulators would force them to sell at some price. Has the CPUC forced such a sale before? Functionally, if PG&E can just safely gauge what's likely to be out of reach for each city, they can name a price detached from reality and be confident of maintaining their stranglehold.
brian-armstrong 2y ago
PG&E surely knows that if it lets one city do this, then more will follow quickly. It will be left with the least profitable regions and cities that can't afford to/don't have the credit for this transition. That would ultimately leave the remaining customers in an even less affordable position.
- greesil 2y ago
  Maybe these expensive-to-serve regions need a different model of power generation.
  - JasserInicide 2y ago
    Or living so far from civilization, especially in a state where wildfires have been part of the ecosystem for millions of years.
    - greesil 2y ago
      Altadena isn't exactly far from civilization. The point isn't that wild fires happen, it's that maybe these little places should go "off grid" so everybody can get a lower price. Everybody but them probably.
  - brian-armstrong 2y ago
    Possibly, but that's orthogonal to my comment. Point is that there will still be cities that have to shoulder PG&E costs not because they have fires but because they can't afford to purchase and maintain their own grid, or don't have the political strength to get it done.
gvkhna 2y ago
Unfortunately most of the CPUC worked at PGE, the people that understand energy regulation are usually energy folks. And so the CPUC is typically quite understanding of PG&E’s pleas, they approved every single rate hike they’ve proposed. 5 times last year alone.

abeppu 2y ago

> I don't think the CPUC will let them get away with "we won't sell at any price" - I think the regulators would force them to sell at some price. Has the CPUC forced such a sale before? Functionally, if PG&E can just safely gauge what's likely to be out of reach for each city, they can name a price detached from reality and be confident of maintaining their stranglehold.

brian-armstrong 2y ago

PG&E surely knows that if it lets one city do this, then more will follow quickly. It will be left with the least profitable regions and cities that can't afford to/don't have the credit for this transition. That would ultimately leave the remaining customers in an even less affordable position.

greesil 2y ago
Maybe these expensive-to-serve regions need a different model of power generation.
- JasserInicide 2y ago
  Or living so far from civilization, especially in a state where wildfires have been part of the ecosystem for millions of years.
  - greesil 2y ago
    Altadena isn't exactly far from civilization. The point isn't that wild fires happen, it's that maybe these little places should go "off grid" so everybody can get a lower price. Everybody but them probably.
- brian-armstrong 2y ago
  Possibly, but that's orthogonal to my comment. Point is that there will still be cities that have to shoulder PG&E costs not because they have fires but because they can't afford to purchase and maintain their own grid, or don't have the political strength to get it done.

gvkhna 2y ago

Unfortunately most of the CPUC worked at PGE, the people that understand energy regulation are usually energy folks. And so the CPUC is typically quite understanding of PG&E’s pleas, they approved every single rate hike they’ve proposed. 5 times last year alone.