Posted on 11/02/2019 6:03:06 AM PDT by srmanuel
That’s essentially what will happen, the only problem is given the political climate in California, no reputable company will buy the assets and be subject to the same laws that bankrupted PG&E to begin with...
The only one left is the State Government who will get the assets relatively cheaply...
The current stockholders of PG&E stock are going to get wiped out....
Presently (fall of 2019), Hawaii is at the highest level...31.16 cents per kWh. Alaska is at 23.56. And California is down around 19.86 (which is double of what you pay in Lou, Id, and Washington state).
I do agree, rates would have to go up around 35 to 40 cents if the state took over, and all this talked-about renovation were to take place. But so far, the state hasn’t proved they are that great of managers, and I think the PG&E attitude is...let them come and waltz into the minefield. You’d have to slip five to ten billion in state tax revenue into the bucket, so you’d be paying double in some ways for your electrical power.
I can say this...if you had to pay $300 to $400 a month, for undependable electricity, I’d have to put up a solar cell collector or wind-mill...or leave the state.
You correct, but very few if any private company will come forward to buy the assets of PG&E and be subjected to the laws California which bankrupted PG&E to begin with...
Leaving only the State of California to buy the company at a fire sale price.....
The current stockholders of PG&E will be destroyed.....most already have been destroyed the stock price is almost a penny stock now.
central planning + narrow political incentives and decisions + statist bureaucratic management + state ownership & state control + statist monopoly = economic chaos + destruction + inefficiencies + waste = disaster & catastrophe & misery
The speed at which California is being de-modernized and made to look like Venezuela is breathtaking.
So glad I don’t live there.
If I had more coffee in me this morning, I'd turn this into several different math formula's including Algebra, Calc and Trig......
Just to make the point you're so eloquently making mathematically of course.
Going full Venezuela! Wow. That was quick.
Making houses out of mud, washing clothes by beating them on rocks, working in the hot sun without A/C - all valuable survival skills in the coming era.
They can’t stop people from leaving like Venezuela can though. Here come the legal migrants crisis.
... The current stockholders of PG&E stock are going to get wiped out....
Probably a lot of retirement funds, another nail in the retirement coffin
Let’s all chip in for some squirrel food to keep the power on at FR when the grid goes down.
I cannot wait for the inept poorly educated idiots of the CA gubmit to run the power company. Today’s blackouts will be wished for compared to the upcoming apocalypse.
92.86% Shares Held by Institutions
https://finance.yahoo.com/quote/PCG/holders
I’m in MS and it’s rated at 11.22 cent per kWh - 1600 sq ft condo (76 degrees in Summer and 73 degrees in Winter) averages about $130 a month electric and $15-$40 for gas depending on whether it’s just for cooking or if I use the gas fireplace to supplement the normal electric heating and make the LR cozy and romantic (maybe 2-1/2 months a year).
Wayne Allen Root summarized the problem nicely:
https://townhall.com/columnists/wayneallynroot/2019/11/02/anyone-want-to-play-poker-n2555778
"California is burning and blacked out because of insane liberal policies.
First and foremost, ..., hundreds of billions of dollars have been wasted over the past 20 years paying for the costs of illegal immigration instead of upgrading and modernizing the California electric grid.
The secondary cause for California's nightmare involves environmental policies that won't allow brush clearing or cutting down dead trees.
The third cause is climate change mandates that force utility companies to waste billions of dollars annually on green energy."
In bankruptcy, debt will almost always take priority...meaning current stockholder will get wiped out and the debt holders will get paid with newly issued stock. If the company remains a going concern...
The people who hold the hold the debt will likely also take a real haircut because if the State of California takes over they will only pay a few cents on the dollar....
Bottom line , current stockholders will get wiped out, current bond holders will take a big haircut and the citizens of California will get a state run/owned utility company...
If the Democrats ever get full power at the federal level again, they will do this to the oil industry so they can take it over and destroy it.
Look at the Socialists go, bro!
They stop you from doing your business in a proper manner, then they take over your business, because you didn’t do it right.
Then you never have electricity again.
California will conduct a bankruptcy similar to the way Obama conducted the GM & Chrysler bankruptcies.....giving the unions everything while shafting every investor, regardless of their priority in debt recovery.
California will conduct a bankruptcy similar to the way Obama conducted the GM & Chrysler bankruptcies.....giving the unions everything while shafting every investor, regardless of their priority in debt recovery.
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