The water department is still saving money because the 1.8 percent today compares with more than 5 percent the water department has paid on its state and bank loans for water purchases.
The rate last week was 1.74%, so maybe the PG&E suit did have a small effect. Now on the 5% figure, that was the original interest rate on the RANS, I think. But the rate was bumped up to 7.5%, then 9% [I think], when they weren't paid off on time. Sloppy reporting, as usual.
Sort of says it all. However, once in a while a reporter gets it right. There is an AP article in the Bellingham Herald this morning that ends with the following quote. It will be interesting to see how Democrats like having to act in a business-like manner. It should make them hate the day they every became involved in politics.
The PUC wants to reassure power sellers that PG&E and Edison will be able to pay their bills and persuade Wall Street to boost their credit ratings so they can rely less on the state.
Those same credit rating agencies will signal when the utilities are healthy, making it vital state regulators make consistent rules for the future, said Dominic DiMare, legislative advocate for the state Chamber of Commerce.
"It is incredibly important that there be a stable environment for the utilities and their investors, and most important for Wall Street," DiMare said. "Right now Wall Street seems to be driving the boat."