by Bob Walsh
Governor Moonbeam, HMFIC of the formerly great state of California, signed into law a bill that essentially puts PG&E ratepayers, rather than share holders, on the hook for a couple of the massive fires in NorCal, assuming they are determined to be caused by PG&E.
PG&E is the nations largest public utility if you use revenue as the guideline. It is possible, though not yet determined, that investigators will determine that the Tubbs fire last year, which killed 22 people and destroyed a couple of thousand homes, was their fault.
Moonbeam claims he fears that if this goes against PG&E they could be forced into bankruptcy, which would be disruptive. This bill will allow PG&E to stick ratepayers a surcharge over the next 20 years to pay for damages, leaving share holders fat and happy.
Despite this move Moody's is currently rating PG&E bonds one notch above junk status. I guess when you get to a certain point it is more important to protect the shareholders than the customers. Ain't socialism wonderful??
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