Monday, December 5 2022 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Today's News
Yesterday's News
Week of Nov 28
Week of Nov 21
Week of Nov 14
Week of Nov 07
Week of Oct 31
By Topic
By News Partner
Gas News
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    PG&E Plot To Sell Roughly 50 Percent Of Non-Nuclear Power Generation To Wall Street Investors Reveals Business Model's Flaws


    October 3, 2022 - Targeted News Service

     

      SAN FRANCISCO, California, Oct. 1 -- The Environmental Working Group issued the following news release on Sept. 30, 2022:

      Pacific Gas & Electric executives are looking to sell to Wall Street investors about half the utility's non-nuclear electricity generation capacity. The sale would take place via a new subsidiary in a move that highlights the folly of PG&E's misguided business model.

      The sale, reported by T&D World, will raise funds to cover the exceedingly high costs of PG&E's flawed bid for burying transmission lines to avoid fires while clinging to an outdated, centralized business plan that only profits investors and executives. The same plan seeks to minimize cost-saving, customer-owned solar plus storage at the local level and hikes electricity bills for hard-working families.

      "With this plan to sell off such a large portion of its non-nuclear subsidiary to Wall Street, PG&E is admitting just how expensive and misguided its business model is," said EWG President and Bay Area resident Ken Cook.

      "The smarter, more resilient and affordable approach would be for policymakers to prioritize a decentralized electric system based on customer-owned solar plus storage, energy efficiency and demand response. Such investments could avoid billions in transmission and distribution system upgrades and would benefit all ratepayers financially and boost the state's economy," said Cook.

      On September 28, investor-owned PG&E filed an application with the California Public Utilities Commission, or CPUC, to establish Pacific Generation LLC. The new company would be a subsidiary housing PG&E's non-nuclear power generation capacity and infrastructure.

      PG&E CEO Patti Poppe and other top executives intend to sell a 49.9 percent minority stake in the new LLC to investors by the end of 2023, according to T&D World.

      During a recent presentation for investors, PG&E officials said creating the LLC will enable the company to fund transmission and other infrastructure needs without having to issue new stock and dilute current investors, T&D World reported.

      One of the biggest costs facing PG&E is its plan to bury transmission lines. The plan is a bid to avoid the catastrophic and deadly wildfires its poorly maintained power infrastructure has caused for decades.

      Last year's Dixie Fire, sparked by a damaged PG&E transmission pole, torched nearly 1 million acres, destroyed hundreds of homes and forced more than 26,000 people to evacuate. In the aftermath, the company pledged to bury 10,000 miles of lines that could cost around $30 billion - money it needs the LLC sale to fund the project.

      "PG&E has been rewarded instead of punished for the thousands of acres it's burned and scores of people it's killed," said Cook. "We need new policies that include customer savings and safety benefits, but we are stuck with the same expensive, unreliable power system that enriches investors while putting the rest of us at risk."

      The LLC plan is just the latest in a series of seemingly never-ending missteps by PG&E that do nothing to cut ratepayers' bills or fight the climate crisis.

      In another alarming move, PG&E and California's other two largest utilities are asking the CPUC to scrap incentives for the state's popular rooftop solar program and impose new fees on the vital clean energy source. Because it's their only competition, the utilities are attacking solar while they continue their flawed focus on nuclear and fossil fuels.

      The CPUC proposed to approve the solar plan in December 2021 but then reconsidered the move after massive public outcry from environmental justice, clean energy and affordable housing advocates, residents and more. The commission is expected to issue its new proposal in the coming days.

      * * *

      Original text here: https://www.ewg.org/news-insights/news-release/2022/09/pge-plot-sell-roughly-50-percent-non-nuclear-power-generation

    TOP

    Other Articles - Utility Business / General


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.