Ratepayers And Taxpayers Will Pay $21 Billion To Bail Out SCE, PG&E, SDG&E
Written by 991KBU on June 24, 2019
California Governor Gavin Newsom on Friday released details about a bailout bill for the shareholders and customers of Southern California Edison … and two other investor owned utilities.
A surcharge that was levied on California ratepayers nearly 20 years ago … during power shortages caused by Enron and other profiteers … was set to expire this year.
The governor is asking the California Legislature to extend that existing charge.
He hopes to generate a $10.5 billion fund that the power companies could tap to pay for fire damage — like the estimated 2 billion dollars in damages to Malibu and vicinity form earlier this year.
The state’s power companies would have to meet the state’s new safety standards … the ones that are causing the Edison helicopter to ho er over Malibu.
If the utility companies match the ratepayer money with another $10.5 billion in their money .… the state would put a cap on the companies’ financial liability …. if their negligence were to cause a wildfire.
Total bailout for SCE, Pacific Gas & Electric and San Diego Gas & Electric: $21 billion.
Wall Street analysts have told the governor they will downgrade the value of Edison stock this summer in less the state comes up with some sort of relief for The companies.
Rates will positively skyrocket if that happens.
All this is a vital concern to Malibu … where almost a quarter of the city suffered fire damages last year … and where all the city is at risk for a another catastrophic fire this year.
