SCE Is ‘1 Fire Away’ From Bankruptcy, Which Could Hurt Fire Victims, Analyst Says
Written by 991KBU on May 30, 2019
Southern California Edison power lines … their lack of maintenance and failure to control vegetation in a wildlands area are likely the cause for the Woolsey Fire.
That means the power company is on the hook for one point 6 billion dollars worth of destroyed houses … not to mention the loss of three lives … the business disruption and damages.
And with Southern California still choked with overgrown brush damaged by drought … plus weeds from a very wet winter …. the stage is set for possible other major fires this fall.
One stock analyst tells the Los Angeles Times today that Southern California Edison is “one catastrophic wildfire away from having serious financial issues” like Pacific gas and Electric.
That’s the word from Neil Kalton, a stock analyst for Wells Fargo, quoted in the LA Times.
PG&E is in bankruptcy … and thousands of people who lost their houses in P G and E territory may get pennies on the dollar in restitution for their losses.
In Sacramento yesterday … the state commission set up to evaluate financial problems with the state’s three utilities has shied away from reocmmending that they be given legal relief.
It’s called the 901 Commission … named after Senate Bill 901 … which created it.
They say power companies should remain strictly liable for fires caused by their equipment … so called strict liability.
The latest plan from Governor Gavin Newsom and legislative leaders is for some sort of “bridge financing” to help utilities pay for wildfire costs.
This bridge financing would make fire victims whole … while the California Public Utilities Commission figures out who was at fault … and for how much the utility companies will be on the hook.
Estimates for this fund range upwards of $40-billion dollars … coming from both utility stockholders and ratepayers.
The 9-0-1 Commission is also recommending that all cities that approve new development be able to provide firefighting services within a certain time limit.
They also recommend that the state provide major funding for wildfire mitigation, which could include small grants for homeowners to make changes so structures are less susceptible to fire embers.
And … a proposed state law to make property maintenance laws more consistent.
