PG&E Another train wreck stock

[Lakewood90712]

Down 53 %, most in the last 2 days

With the liability coming down the road for the nor call fires it could BK.

They are still working out liability issues from 14 utility caused fires from 2017.

P/E at the new price is 98.

[Another Reader]

I don't envy the guy that has to show up at the press conference every evening to talk about restoring power. He sort of has that deer in the headlights look. Southern California Edison appears to have responsibility for one of the Southern California fires. Same series of events.

The State passed a law earlier this year year to allow the utilities to offload the costs of these fires onto the ratepayers. My $0.37 per kwh will probably be twice that once the liability and costs are established.

[RobbieB]

Yup. Good time to go solar.

[NW-Bound]

This fire is awful. According to a media piece I read, the fire started at around 6:30AM, and by noon most of the town of Paradise was already burned. That would explain how so many died, as there was no ample time for warning and evacuation. And the hilly terrain offered few roads out of the area. Just awful.

Makes me wonder if it were not for PG&E equipment or electrical wire problems, could a fire of any sort, a home fire, a car fire, or a carelessly discarded cigarette butt trigger the same devastatingly fast fire?

[Just_Steve]

Quote:

Originally Posted by Lakewood90712 Down 53 %, most in the last 2 days With the liability coming down the road for the nor call fires it could BK. They are still working out liability issues from 14 utility caused fires from 2017. P/E at the new price is 98.

Wouldn't be the first time.

https://oilprice.com/Energy/Energy-G...kruptcies.html

Pacific Gas & Electric Company. Bankrupt April 6, 2001. Assets $36.1 billion

California’s largest publicly-owned utility went bust after deregulation led the company to incur billions in debt. After selling its gas power plants, the company had to buy power from other energy companies. Buying at fluctuating prices and selling at fixed prices led to losses and eventual bankruptcy. But according to Time, wholesale prices eventually dropped, and the day the company emerged from bankruptcy in 2004, its stock was worth three times as much as when it filed for protection.

[haha]

I guess utilities are no longer widows'and orphans' stocks.

Ha

[Lakewood90712]

Quote:

Originally Posted by Just_Steve Wouldn't be the first time. https://oilprice.com/Energy/Energy-G...kruptcies.html Pacific Gas & Electric Company. Bankrupt April 6, 2001. Assets $36.1 billion California’s largest publicly-owned utility went bust after deregulation led the company to incur billions in debt. After selling its gas power plants, the company had to buy power from other energy companies. Buying at fluctuating prices and selling at fixed prices led to losses and eventual bankruptcy. But according to Time, wholesale prices eventually dropped, and the day the company emerged from bankruptcy in 2004, its stock was worth three times as much as when it filed for protection.

And P G and E was the biggest lobbyist for de-regulation a couple of years before the BK.

Add in scandals: Hinkley , San Bruno Pipeline Rupture .........

The company seems to be joined at the hip with much of the state legislature .

[aja8888]

Quote:

Originally Posted by haha I guess utilities are no longer widows'and orphans' stocks. Ha

At least not the ones in California.

[limeyx]

Quote:

Originally Posted by NW-Bound This fire is awful. According to a media piece I read, the fire started at around 6:30AM, and by noon most of the town of Paradise was already burned. That would explain how so many died, as there was no ample time for warning and evacuation. And the hilly terrain offered few roads out of the area. Just awful. Makes me wonder if it were not for PG&E equipment or electrical wire problems, could a fire of any sort, a home fire, a car fire, or a carelessly discarded cigarette butt trigger the same devastatingly fast fire?

Or a lawnmower ? Yup...
https://www.sfgate.com/news/article/...nt-3200351.php

[Lakewood90712]

Down another $6 (25%) in first hour of trading.

[Lakewood90712]

Closed at near year high $48.80 on 11/6/18

Trading about $17.70 right now..........

Yesterday their bonds were trading at about 90 cents on the dollar. Bad, but not through the floor.

[ExFlyBoy5]

Quote:

Originally Posted by Another Reader My $0.37 per kwh

Wow. I knew utilities were a bit higher out there in Cali, but damn!!!

[aja8888]

Quote:

Originally Posted by ExFlyBoy5 Wow. I knew utilities were a bit higher out there in Cali, but damn!!!

That's triple what we are charged, and I thought we were high!

[Lakewood90712]

Quote:

Originally Posted by ExFlyBoy5 Wow. I knew utilities were a bit higher out there in Cali, but damn!!!

Base tier users are about 17 cents throughout the state, The raw power is relatively cheap usually well under 8 cents KW.

its the distribution charges, transmission charges, surcharges, state and local tax, climate change surcharges, global warming carbon offset fees , public purpose program fees, low income subsidy surcharge, nuclear decommission surcharge, wildfire damage surcharge..... it goes on and on.

You should see our car registration, 90 % of the fees listed on it have noting to do directly with automobile ownership and operation.

Just an example of nutty things of the high cost of living in CA.

[ExFlyBoy5]

Quote:

Originally Posted by Lakewood90712 Base tier users are about 17 cents throughout the state, The raw power is relatively cheap usually well under 8 cents KW. its the distribution charges, transmission charges, surcharges, state and local tax, climate change surcharges, global warming carbon offset fees , public purpose program fees, low income subsidy surcharge, nuclear decommission surcharge, wildfire damage surcharge..... it goes on and on. You should see our car registration, 90 % of the fees listed on it have noting to do directly with automobile ownership and operation. Just an example of nutty things of the high cost of living in CA.

The listing of "nuclear decommission surcharge" makes me think of a surcharge we were paying in Georgia to BUILD two new nuclear reactors. So, they charge you to build the thing, and then charge you again to shut it down. Ah...government efficiencies at work!

[candrew]

Quote:

Originally Posted by ExFlyBoy5 The listing of "nuclear decommission surcharge" makes me think of a surcharge we were paying in Georgia to BUILD two new nuclear reactors. So, they charge you to build the thing, and then charge you again to shut it down. Ah...government efficiencies at work!

In addition, it is taxpayers - not the utility operating the nuke or its investors - that will bear the brunt for most, if not all of the costs of a power plant "accident".

[bjorn2bwild]

Up 40+ percent after-hours on this news.

Quote:

PG&E Corp shares soared 40 percent in after-hours trade on Thursday after a report that a regulatory official told investors the agency does not want the utility to go into bankruptcy should it be found responsible for this month’s deadly wildfire in northern California.

[samclem]

Quote:

Originally Posted by Lakewood90712 Base tier users are about 17 cents throughout the state, The raw power is relatively cheap usually well under 8 cents KW. its the distribution charges, transmission charges, surcharges, state and local tax, climate change surcharges, global warming carbon offset fees , public purpose program fees, low income subsidy surcharge, nuclear decommission surcharge, wildfire damage surcharge..... it goes on and on. You should see our car registration, 90 % of the fees listed on it have noting to do directly with automobile ownership and operation. Just an example of nutty things of the high cost of living in CA.

So, if I put solar panels on my home in CA, do I get to sell power back to the utility company at the rate that includes all these tacked-on surcharges, or do I just get the price that reflects the cost to generate (and distribute?) the power?

[Another Reader]

Supposedly the new law offloading the cost of the disasters onto ratepayers does not take effect until January 1st. No doubt the legislature will pass an urgency statute covering 2018.

I'm not paying for this. These people should be held responsible. Had they implemented their new plan of shutting down electrical service in high winds, this fire would not have happened. The management of PG&E should be held accountable and the stockholders should bear the cost.

[Another Reader]

Over 9600 homes and 260 commercial structures destroyed and 63 confirmed dead. Missing list has gone up by over 500 names as the sheriff's office reviews all the 911 calls on the day of the fire. Imagine the litigation that will follow this.