PG&E Backs Bid To Bill Public For Disasters - SFGate

[WillyT]

PG&E backs bid to bill public for disasters
Bob Egelko, Chronicle Staff Writer - San Francisco Chronicle
September 13, 2010 07:43 PM

<snip>

(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.

San Diego Gas & Electric Co. introduced the proposal in August 2009 in response to fires in 2007 that caused more than $1 billion in damage. The utility intended to address "wildfires in Southern California caused by extreme weather conditions," said a spokeswoman for the company, Stephanie Donovan.

But Nicholas Sher, a lawyer in a Public Utilities Commission staff division that opposes the plan, said the San Bruno explosion and fire "would fit within the wildfire definition."

He also said the proposal would allow utilities to charge its customers for the costs of past fires - possibly including San Bruno.

<snip>

Link: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/09/13/BA261FDDD8.DTL

:wtf:

[Tansy_Gold]

1. .

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9127110#9127167

They will jack up the rates to compensate. CEOs will not feel the bite; the consumers will. Stockholders will not feel the bite; consumers will. Little people don't count.

They. Don't. Care.







TG, NTY

[stranger81]

2. If the PUC approves this, they should all be chucked out on their asses.

This is so infuriating. There are still people missing and others fighting for their lives, and PG&E just can't wait to pave the way for the next catastrophic explosion to happen. What's the incentive for them to improve their aging infrastructure if they can simply funnel all the costs in blood and treasure to customers?

[jgraz]

3. Time for the state to take over PG&E

If they can't maintain their equipment or even pay for their disasters, they need to be shut down.

[Liberty Belle]

4. Screw this. SDG&E started 166 fires in 5 years--that they admitted to!

Why should any of us pay a penny for their negligence or failure to properly insure themselves?

[lostnfound]

5. Private profit, public risk. It's the American Way. nt

[Javaman]

6. this is an industry wide push...

this comes on the heels of the BP leak in conjunction with the right wing screed regarding "mom and pop" fossil fuel corporations who wish to drill deep for oil in areas, if spilled, they would be ruined if the clean up cost was expensive.

Logic would dictate, if you can't pay for the spill, you shouldn't be drilling in the first place. But rather than take responsibility for their past, present and future fuck ups, they choose instead to pass the cost onto the consumer, because after all, they are using that fuel, right?

I know, it's pretty fucked up logic.

But since the whole BP bullshit has been allowed to drag on and on, be aware that more of these creative type of arguments will continue to pop up until they can get a senator or a few, to back their bullshit claims. Read: kick backs, bribery and graff.

We have entered into a whole new arena of stupidity, folks. What the fossil fuel corps realized after BP is that there is money in bilking the public via the fossil fuel corps fuck ups.

It seems as if the corps are now embracing the "what me worry?" tactic of dealing with the public. Or more likely, their slogan should state, "not my problem".

Weeeee!!!