PG&E Backs Bid to Bill Public for Disasters

[Kadie]

PG&E Backs Bid to Bill Public for Disasters
Bob Egelko, Chronicle Staff Writer

Monday, September 13, 2010


(09-13) 19:43 PDT SAN FRANCISCO -- State regulators will take their first look Tuesday at a proposal backed by Pacific Gas & Electric Co. that would require customers to pay all costs of catastrophic fires, such as last week's gas line explosion in San Bruno, that exceed a utility's insurance coverage.

It's not clear whether the plan, if approved by the state Public Utilities Commission, would trigger a PG&E rate increase to help pay the utility's cost from Thursday's disaster. In a filing Monday with the U.S. Securities and Exchange Commission, the utility said it has $992 million in fire insurance and a $10 million deductible, and "believes that most of the costs related to the San Bruno event will be covered."

Even if the company has enough insurance, however, the proposal would make rate hikes more likely if PG&E caused fires in the near future.

Under current rules, utilities in California can seek a rate increase if the costs of a disaster exceed their insurance coverage. But the PUC can veto the request and force utility shareholders to pay the bill.

More than wildfires

The new proposal would require utility customers to bear the uninsured costs of catastrophic fires. It is titled a "wildfire expense balancing account," but the application defines "wildfire" to include any uncontrolled fire, urban or rural, that is larger than an acre and destroys houses or other buildings.


Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/09/13/BA261FDDD8.DTL&tsp=1#ixzz0zTD0qktK

[mike r]

1. Bill should also require taxpayers to apologize to a corporation

when a corporation kills taxpayers. :sarcasm:

[DBoon]

7. like apologizing to the vice president when the vice president shoots you?

[depakid]

2. Anyone who didn't see that coming is hopelessly myopic and naive

[lonestarnot]

3. What fucking bullshit! Don't take that shit! Get your pitchforks!

[aquart]

4. What a surprise!

[Starry Messenger]

5. Fine.

Just as soon as they hand over the reins to state government. No more private power company. The "efficiency of the marketplace" has obviously proved to be too much for them.

[depakid]

9. PG&E got burned big time with California's deregulation scheme

DWP a savvy PUBLIC agency that didn't fall for the (obvious) bullshit in the bill, was making money hand over foot- and keeping the power on, while the fools at PG&E and Southern California Edison were rolling black outs and losing billions on the spot market!

There's a moral in that story of course (and a lesson in economics re: natural monopolies, independent oversight, and the benefits of public utilities).

[Dawson Leery]

6. This is called fascism!

[Brother Buzz]

8. Socialize the losses and privatize the profits

A fat cat republican wet dream. Ain't America grand?

[WillyT]

10. Oops...

Sorry for duping ya!

Should have done a search first.

:banghead: