Article Link: https://www.sfgate.com/news/us/article/California-bill-seeks-takeover-of-nation-s-15026663.php
Summary:
California's State Senate member Scott Wiener recently proposed a law that would turn PG&E into a public utility and would shut down the electric company. This proposal was based off of PG&E's response to their power lines causing wildfires and burning down towns, as well as shutting down the power for multiple cities to save on costs, as the company went bankrupt in 2019. The plan would be to give money to taxpayers to effectively buy all of the company's stock ($9 billion), and handing it over to the Californian government to handle as an entity for the public to manage. Although it has been met by criticism from PG&E and its fearful workers, it has met positive reception, including that of state governor Gavin Newsom.
Reaction:
Although I am a bit concerned on how exactly the transition of power will play out if the bill passes, I think I would be supportive because of the bad management from PG&E to resolve their issues of debt and upsetting Californian cities by dropping their power for days. The fact that they're so concerned about profits instead of caring for the people shows this detachment from communities. To think that PG&E would no longer be in charge of our electricity is interesting, but it could be a very near future.
Historical Content Connection:
The rise of monopolies and corporations in the 1870s led to the government's eventual reliance on them to help support the government, such as the Panic of 1893. This led to the federal government "trustbusting" these companies into regulating them by the 1900s, including the creation of the Federal Trade Commission in 1914. (Source)
Questions:
What are your opinions about this proposed law? Do you think PG&E are able to restructure the company and fix its issues?
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ReplyDeletePG&E is in serious debt due to the wildfires caused by their power lines. According to the sfchronicle.com, PG&E can get out of their debt of 34 billion dollars by opening trusts from which the claims of individual victims would be paid and another fund to give bondholders control of PG&E. This would get PG&E out of debt but it would also take a while. The government has power to take control of PG&E but they can also let another PG&E arise. PG&E has a complete monopoly and this bill is completely valid.
ReplyDeleteI agree with your stance, and at this point in time it seems that the bill passing is the most likely option, and we are probably going to see the fall of PG&E. They have gone so far down the economic pit, and the wildfires caused additional damage to the reputation of being able to get any more deals for the company. If they do allow another electric company to take control, that would be very interesting, and I wouldn't mind that option if they are able to handle the wildfire situations better and prevent their debt or shut down entire cities of their electricity.
DeleteI think that PG&E should be replaced by either public management, or a new company. PG&E has proven to be unable to meet problems in productive ways, as it took multiple instances of fierce wildfires for them to take action, and even then, they merely turn to shutting off power to prevent the fires. An electric company that has to shut off the electricity to thousands of its customers should not be allowed to remain. While there will most likely be issues with the transition of power if PG&E is replaced, I think the pros would outweigh the cons in the long run.
ReplyDeletePG&E has already had second chances and has already had faulty equipment before. It is time for the government to step in and make some changes. On a side note it seems like a massive conflict of interest for PG&E to be publicly traded and be the only option for lighting up houses.
ReplyDelete