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.
Sorry, PG&E's accounting says otherwise.
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.
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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What exactly does their accounting say?