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stole my clown pic too
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and you can eat shit too
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cat's been out of the bag. like your thinking.
FO hat boy
California's Two Remaining Utilities Are One Fire Away From Bankruptcy
Two weeks after California's largest utility PG&E filed for bankruptcy protection (marking its second bankruptcy in 20 years), Bloomberg is sounding the alarm that California's two other large electric utilities are just one wildfire away from bankruptcy filings of their own - a fact that was underscored last month when S&P slashed their credit ratings to near-junk status.
And to the chagrin of California residents, Gov. Gavin Newsom has done nothing to ease these anxieties, leaving large swaths of the largest state in the union without solvent utility companies (a situation that would likely lead to massive rate hikes on California's already heavily taxed consumers).
The two utilities in question are Edison International’s Southern California Edison Co. and Sempra Energy’s San Diego Gas & Electric Co. Both utilities have begged California lawmakers to reconsider the state's view on the legal concept of inverse condemnation. Put simply, this legal principle allows utilities to be held liable for any wildfires caused by their equipment - even if the utilities have followed every safety rule. But so far, their pleas have fallen on deaf ears (for the record, the changes being requested wouldn't affect the distribution of liability if the utilities are found to be negligent).
"This is a really serious issue that could absolutely impair the health of utilities in this state," Pedro Pizarro, Edison’s chief executive officer, said in an interview. "I don’t want to speculate about bankruptcy, but this is serious. And the current approach is just not sustainable."
But as Bloomberg points out, there are several easy solutions that wouldn't be difficult for the legislature and governor's mansion to pursue. The legislature has the power to change the standard. But so far, they have opted to do nothing.
Here's a rundown of the options (text courtesy of Bloomberg):
Legislation
California lawmakers spent much of last year hunting for a solution. In August, they passed a bill designed to help utilities cover liabilities from a wave of fires in 2017. But it doesn’t offer aid for 2018 fires, a critical issue after November’s Camp Fire, the deadliest in state history. With PG&E’s equipment seen as a possible ignition source, the company estimated it was facing $30 billion in wildfire liabilities when it filed for bankruptcy.
California’s new governor, Gavin Newsom, assembled an advisory panel and told them to fast-track their efforts; he wants a report before July. Utilities and legislators are all offering ideas, but there’s no guarantee they’ll find a solution that will help the power companies without becoming a financial burden to the state, or raise the ire of ratepayers and voters.
The inverse condemnation doctrine is rooted in California’s constitution, so any direct changes would require a constitutional amendment, according to the state’s legislative counsel office. An amendment would need to win two-thirds majorities in both the state Assembly and Senate, and then be approved by voters. Given the public anger at PG&E, that avenue is closed, legislators say.
“There’s no sense of anyone planning to do that, at least in the Democratic caucus,” said state Senator Jerry Hill.