Comment by colechristensen

3 days ago

>That's why electricity in CA is 2-3x what it was just 10 years ago

No, CA electrical cost is about paying for PG&E's insurance liabilities and subsidizing the living situation in places which are de facto uninhabitable on account of wildfires.

8 comments

colechristensen

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hunterpayne  2 days ago

Sorry, PG&E's accounting says otherwise.

  • colechristensen  2 days ago

    PG&E is incentivized to spend more money on capex because the state guarantees a return on investment, a perverse incentive which causes them to make stupid money decisions to realize more profit. For example doubling the cost of energization by having a large proportion of it done by external contractors.

    24% of PG&E's revenue (that is customer rate payments) goes to wildfire related costs.

    • otterley  2 days ago

      The flip side of the incentive to spend more on capex is that rates are regulated by the PUC. So it’s not like the utilities get blank checks.

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