Tag: PG&E

Author SuzannePosted on Categories Climate Change & Energy, ForestsTags , , , ,

Op-Ed: PG&E – Monopoly power and disasters

Peter Phillips and Tim Ogburn, PROJECT CENSORED

The Pacific Gas and Electric Company (PG&E) has diverted over $100 million from safety and maintenance programs to executive compensation at the same time it has caused an average of more than one fire a day for the past six years killing over 100 people.

PG&E is the largest privately held public utility in the United States. A new research report shows that 91% of PG&E stocks are held by huge international investment management firms, including BlackRock and Vanguard Group. PG&E is an ideal investment for global capital management firms with monopoly control over five million households paying $16 billion for gas and electric in California. The California Public Utility Commission (PUC) has allowed an annual return up to 11%.

Between 2006 and the end of 2017, PG&E made $13.5 billion in net profits. Over those years, they paid nearly $10 billion in dividends to shareholders, but found little money to maintain safety on their electricity lines. Drought turned PG&E’s service area into a tinderbox at the same time money was diverted from maintenance to investor profits.

A 2013 Liberty Consulting report showed that 60% of PG&E’s power lines were at risk of failure due to obsolete equipment and 75% of the lines lacked in-line grounding. Between 2008 and 2015, the CPUC found PG&E late on thousands of repair violations. A 2012 report further revealed that PG&E illegally diverted $100 million from safety to executive compensation and bonuses over a 15-year period.

PG&E has caused over 1,500 fires in the past six years. PG&E electrical equipment has sparked more than a fire a day on average since 2014—more than 400 in 2018—including wildfires that killed more than 100 people.

In October 2017, multiple PG&E linked fires (Tubbs, Nuns, Adobe fires and more) in Northern California scorched more than 245,000 acres, destroyed or damaged more than 8,900 homes, displaced 100,000 people and killed at least 44.

In November, 2018, the PG&E caused Camp fire burned 153,336 acres, killing 86 people, and destroying 18,804 homes, business, and structures. The towns of Paradise and Concow were mostly obliterated. Overall damage was estimated at $16.5 billion.

PG&E has caused some $50 billion in damages from massive fires started by their failed power lines. They filed bankruptcy in January 2019 to try to shelter their assets. PG&E’s 529 million shares went from a high of $70 per share in in 2017 to a low of $3.55 in 2019. Shares are currently trading at $10.55 with zero returns. At this point PG&E actually owes more in damages then the net worth of the company.

All but two members of the board of director resigned in early 2019, and the CEO was replaced. A new board of directors was elected by an annual stockholders meeting in June of 2019. PG&E now has a board of directors whose primary interest in 2020 is returning PG&E stock values to $50-70 range and returning to annual dividend payments in the 8-11% rate.

The new PG&E management took widespread aggressive action during the fire-season of 2019 shutting down electric power to over 2.5 million people statewide. Nonetheless, a high voltage power line malfunctioned in Sonoma county lead to the Kincade fire that burned 77,758 acres destroying 374 structures, and forced the evacuation 190,000 Sonoma county residents. Estimated damages from this fire are $10.6 billion.

The fourteen new PG&E directors were essentially hand-picked by PG&E’s major stockholder firms like Vanguard Holdings 2019 (47.5 million shares 9.1%) and BlackRock (44.2 million shares 8.5%). A new PG&E Director, Meridee Moore, SF area founder & CEO of $2 billion Watershed Asset Management, is also a board member of BlackRock.

Only three of the new fourteen directors live in PG&E’s service area (four if we count the newly appointed CEO from Tennessee). One board member lives the LA area. The remainder of the board live outside California, including three from Texas, two from the mid-west and the remaining four from New York or east coast states. Pending PG&E Bankruptcy court approval, new directors are slated to receive $400,000 each in annual compensation.

Ten of the new 2020 directors have direct current links with capital investment management firms. The remainder have shown proven loyalty experience on behalf of capital utility investors making the entire PG&E board a solid united group of capital investment protectors, whose primary objective is to return PG&E stock values to pre-2017 highs with a 11% return on investment. They claim that wide-spread blackouts will be needed for up to ten years.

All fourteen PG&E board members are in the upper levels of the 1% richest in the world. As millionaires with elite university educations, the PG&E board holds little empathy for the millions of Californians living paycheck to paycheck burdened with some of the highest utility bills in the country. PG&E shuts off gas and electric to over 250,000 families annually for late payments.

The PG&E 2020 board is in service to transnational investment capital. This creates a perfect storm for the continuing transfer of capital from the 99% to the richest 1% in the world, all with uncertain blackouts, serious environmental damage, widespread fires, with multiple deaths and injuries.

We need to liquidate PG&E for the criminal damages it has afflicted on California. The “PG&E solution” is to manage PG&E democratically on the basis of human need, rather than private profit. It is time to take a stand for a publicly owned California Gas and Electric Company as the way to reverse the transfer of wealth to the global 1% and provide Californians with safe, low-cost and more renewable energy. All power to the people!

For the full report with all PG&E board names see: www.projectcensored.org/pge

Source: https://www.projectcensored.org/pge-monopoly-power-and-disasters-by-the-rich-1/

Author SuzannePosted on Categories Climate Change & Energy, WaterTags , , , , , ,

Santa Rosa wastewater quandary linked to Kincade fire could get worse as rainy season ramps up

Will Schmitt, THE PRESS DEMOCRAT

Nearly two months after the Kincade fire was fully contained in northeastern Sonoma County, Santa Rosa is struggling with an after-effect of the massive blaze: its wastewater disposal pipeline at The Geysers was disabled for six weeks, backing up the Sebastopol-area plant with about 400 million gallons of treated wastewater.

As a result, by February city water officials anticipate nearing maximum capacity at the plant’s storage ponds, forcing them to release treated effluent into the nearby Laguna de Santa Rosa, a step that would put customers on the hook for an estimated $400,000 in environmental charges.

The wastewater quandary is one of the lingering repercussions of the county’s largest ever wildfire, which scorched about 77,000 acres and more than 170 homes after igniting near a faulty PG&E transmission line in late October.

A clearer picture of its impact on The Geysers geothermal field — the complex of power plants near where the fire erupted — and the city’s wastewater system, which sends most of its recycled daily output to The Geysers, emerged over the past several weeks in public records and in interviews with city water staff and representatives of PG&E and Calpine, which operates most of the power plants.

PG&E has restored power to most of the lines that went down due to the Kincade fire, but it is still weeks away from reactivating the transmission line where equipment broke shortly before the start of the wildfire, a PG&E spokeswoman said.

That same high-voltage line previously powered the city-owned pumps that deliver water about 40 miles from Santa Rosa’s Laguna Wastewater Plant to The Geysers as part of the city’s wastewater disposal system, in operation since 2003.

Without electricity from that line, Santa Rosa found itself sidelined for six weeks — without the ability to pump the 15 million gallons of wastewater it regularly sends per day on average to help sustain steam power at The Geysers, said Joe Schwall, the city’s deputy director of water reuse operations. The Laguna Road plant is one of the largest sewer operations in the North Bay, serving more than 200,000  people not just in Santa Rosa but in Rohnert Park, Cotati, Sebastopol and parts of Sonoma County.

Read more at: https://www.pressdemocrat.com/news/10513689-181/santa-rosa-wastewater-quandary-linked

Author SuzannePosted on Categories Climate Change & EnergyTags , , , ,

PG&E should belong to Californians. Not to its Wall Street shareholders.

Charlie Eaton, THE SACRAMENTO BEE

As the lights went out across California this month, residents wondered if we will ever fix PG&E — the nation’s largest for-profit electric utility.

Some predictably joked that we should simply unleash the power of that mythical institution, which some economists still refer to as the “free market.” But PG&E’s latest failure illustrates that markets — and how well they work for consumers — always depend on state regulation. For this reason, California must use the crisis to deeply reform its utility regulations.

A critical regulatory choice for any market is the allowed forms of ownership for organizations that sell goods in the market. California’s courts, lawmakers and regulators are confronting this very issue as PG&E seeks to emerge from a bankruptcy that stems from its responsibility for recent wildfire catastrophes. The specific questions are: Who will own PG&E? How much control will regulators give them? And how much profit can owners extract from the utility?

Any changes to PG&E’s ownership will have big consequences for consumers and communities as California tries to transition to a carbon-neutral power grid. So, policymakers should take into consideration the latest social science on how the form of ownership will affect both consumers and society.

The first big lesson from recent research is about who should not be allowed to own PG&E – namely Wall Street. Gov. Gavin Newsom and other policy players should take every step necessary to block a consortium of 24 private equity and hedge funds that are currently attempting a hostile takeover of PG&E. Why?
Opinion

The interests and track record of the investors trying to take over PG&E speak for themselves. These types of funds explicitly seek to extract windfall profits from the companies they acquire, with little concern for the long-term economic viability or social importance of the company. It is telling that PG&E’s largest current group of shareholders are Abrams Capital, Knighthead Capital and Redwood Capital — a rival alliance of hedge funds that is trying to maintain control after running PG&E into the ground just 17 years since the company’s last bankruptcy.

Private equity and hedge fund ownership is especially pernicious in sectors with large public subsidies and little competition. For example, my colleagues and I show in a forthcoming article for the Review of Financial Studies that investor ownership has had dire consequences in the for-profit college sector. When federally subsidized for-profit colleges are owned by outside investors, we find that they are more likely to increase student loan debt, cut faculty-student ratios and engage in fraudulent recruitment.

Read more here: https://www.sacbee.com/opinion/california-forum/article236541993.html#storylink=cpy

Author SuzannePosted on Categories Water, WildlifeTags , , , , , ,

Will overhauling Scott Dam save native fish?

Alastair Bland, THE BOHEMIAN

Salmon three feet long seem to clog the water as the chrome-colored fish, fresh from the ocean, begin their journey upriver toward the high-elevation gravel riffles where they were born. Here, in the remotest tendrils of the watershed, they will lay and fertilize the eggs that ensure the next generation of salmon.

At least that’s how it once was early each autumn on the Eel River. But nature’s security system for fish survival is only as good as the health of a river. In the case of the Eel, a local power company built a dam on the Eel’s main fork in 1920. As a result, Chinook salmon lost access to about 100 miles of spawning habitat.

Steelhead, which swam farther upstream into smaller tributaries, suffered even greater impacts. Intensive in-river commercial fishing, water diversions, logging and other land degradation took their toll, too. Today, annual salmon runs in Eel River that once may have totaled a million or so adults consist of a few thousand. Lamprey eels, too, have dwindled.

Now, there is serious talk of removing Scott Dam, owned by PG&E since 1930.

For fishery proponents, such a river makeover is the optimal way to revive the Eel’s salmon runs.

“We want to see volitional passage, both ways,” says Curtis Knight, executive director of the conservation group California Trout.

Volitional, in this context, means the salmon are able to make their historic migration on their own—downstream as newly born juveniles and, later, upstream as sexually mature adults—all without the assistance of human hands.

“We think dam removal is one possibility here,” Knight says.

California Trout is one of several local groups and agencies now formally considering taking over the operation of Scott Dam from PG&E. As a hydroelectric facility, Scott Dam is not very productive, and with PG&E’s operating license scheduled to expire in 2022, the utility giant recently stepped away from the project. PG&E even briefly put the Potter Valley Project up for auction, though the offer attracted no takers.

Read more at https://www.bohemian.com/northbay/saving-salmon/Content?oid=9360901

Author SuzannePosted on Categories Climate Change & EnergyTags , ,

Op-Ed: How to protect California ratepayers, expand clean local energy and avoid bailing out PG&E

Craig Lewis, UTILITY DIVE

Craig Lewis is the executive director of Clean Coalition, a nonprofit organization whose mission is to accelerate the transition to renewable energy and a modern grid through technical, policy, and project development expertise.

Since 2017, Pacific Gas & Electric (PG&E), California’s largest utility, has racked up more than $30 billion in liabilities for wildfire-related damages caused by its equipment. In January 2019, PG&E filed for Chapter 11 bankruptcy protection with the goal of shedding these liabilities.

This grave situation also represents a golden opportunity for the Golden State.

Experts have been weighing in on what should become of PG&E. Ideas include making PG&E a public authority controlled by the state, breaking it up into municipal utilities, and making it a fully deregulated utility.

But there’s a better solution, one that should be applied to all the state’s investor-owned utilities (IOUs): require the utilities to divest their transmission assets. This solution avoids another utility bailout, protects utility customers from rate increases and wildfire risks, and fixes a major obstacle to California’s zero-emission, clean energy future.

A broken business model

The current utility business model is fundamentally broken and needs to change. IOUs now earn a guaranteed rate of return on infrastructure investments, which incentivizes them to build more transmission infrastructure and has led to out-of-control transmission costs around the country.

Because transmission costs are the fastest-growing part of electricity bills, it could soon cost more to deliver energy than to generate it. And it’s worse than it looks.

The capital costs of transmission infrastructure, high as they are, represent a fraction of total transmission costs. Operations and maintenance (O&M) and returns on investments drive up transmission costs significantly over the life of these assets, with those excessive costs borne by ratepayers.

Read more at https://www.utilitydive.com/news/how-to-protect-california-ratepayers-expand-clean-local-energy-and-avoid-b/554564/

Author SuzannePosted on Categories Climate Change & EnergyTags , , , ,

Greater wildfire risks prompt growth of electrical ‘microgrids’ to rely less on PG&E

Martin Espinoza, THE PRESS DEMOCRAT

In his standard blue jeans and unbuttoned flannel shirt, David Liebman could blend in with many of the young students walking to and from classes at Santa Rosa Junior College.

But Liebman, manager of energy and sustainability for the college district, has something bigger on his mind than class assignments and midterm projects.

Liebman, 27, is heading a $5 million electrical infrastructure project that addresses climate change and fundamentally will transform the way energy is distributed and used on campus.

Using the new solar arrays at the Santa Rosa campus, Liebman is coordinating the development of an electrical microgrid that could operate independently of PG&E during nearby wildfires, or when the escalating threats of fires in the age of climate change prompt the utility to temporarily turn off power.

“Unless we change the infrastructure that runs our society, we’re going to be in a lot of trouble because we won’t be able to adapt to the significant changes that are happening to both the environment and technology in general,” Liebman said.

Fueled by solar energy and equipped with battery storage and a complex control system, the SRJC project is a small part of a much larger movement environmental experts say could fundamentally flip the paradigm on energy usage here and across the country. Before, massive power plants were turned on to meet demand for electricity; now, microgrids could help do that with available renewable energy such as solar, wind and geothermal.

In Sonoma County, microgrid systems would allow key institutions such as hospitals, municipal utilities, a college campus and certain government agencies to continue to operate in the event of a natural disaster that interrupts PG&E’s electrical transmission and distribution.

Local interest in microgrids has heightened with the prospect of Pacific Gas & Electric shutting off power during times of high fire risk.

To provide a model for developing the mini-power networks, a microgrid laboratory has risen just west of the town of Sonoma, at the Stone Edge Farm Estate Vineyards & Winery. The multimillion-dollar microgrid — a testing ground for the latest renewable energy and storage and control technology — encircles 16 acres of vineyards, olive trees and fields of heirloom vegetables and fruit.

Read more at https://www.pressdemocrat.com/news/10027255-181/greater-wildfire-risks-prompt-growth

Author SuzannePosted on Categories Water, WildlifeTags , , , , , , ,

Sonoma County considering taking over Eel River water-power project

Guy Kovner, THE PRESS DEMOCRAT

Sonoma County supervisors agreed Tuesday to study the possibility of applying for a license to operate a remote Mendocino County hydropower project, marking the first move to maintain a long-standing water transfer deemed critical to residents and ranchers in both counties.

A coalition of five Mendocino County agencies and California Trout, a 50-year-old environmental nonprofit, are collaborating with Sonoma County’s water agency in the consideration of taking over the federal license for the Potter Valley Project, which delivers 20 billion gallons of water a year from the Eel River into the Russian River basin.

Each of the three partners is putting $100,000 into the study, an amount dwarfed by the potential cost of establishing free passage for the Eel River’s protected salmon and steelhead — likely a requisite step to extend the project’s life.

PG&E, the state’s largest utility now in bankruptcy, surrendered the project in January, upending the license renewal process, and no entity has responded to a Federal Energy Regulatory Commission (FERC) call for a new operator.

The utility, which had owned the project since 1930, said it was no longer economical to operate a plant that generated less than 1 percent of its power.

But the water flowing through the powerhouse is virtually invaluable to the towns and ranches along the upper Russian River from Potter Valley to Healdsburg and is a critical source for Sonoma Water, which delivers water to 600,000 Sonoma and Marin county customers.

Read more at https://www.pressdemocrat.com/news/9598819-181/sonoma-county-supervisors-eye-future

Author SuzannePosted on Categories Forests, Land Use, Local OrganizationsTags , ,

Judge: PG&E put profits over wildfire safety

A U.S. judge berated Pacific Gas & Electric Corp. on Wednesday, accusing the nation’s largest utility of enriching shareholders instead of clearing trees that can fall on its power lines and start fires and making “excuses” to avoid turning off electricity when fire risk is high.

Judge William Alsup in San Francisco did not immediately order PG&E to take any of the dramatic measures he has proposed to try to stop more wildfires.

But he warned that he was not ruling out at least some new requirements on the company if it did not come up with a plan to “solve” the problem of catastrophic wildfires in California.

“To my mind, there’s a very clear-cut pattern here: that PG&E is starting these fires,” Alsup said. “What do we do? Does the judge just turn a blind eye and say, ‘PG&E continue your business as usual. Kill more people by starting more fires.'”

Alsup is overseeing a criminal conviction against PG&E on pipeline safety charges stemming from a 2010 gas line explosion in the San Francisco Bay Area that killed eight people and destroyed 38 homes.

He proposed earlier this month as part of PG&E’s probation that it remove or trim all trees that could fall onto its power lines in high-wind conditions and shut off power when fire is a risk regardless of the inconvenience to customers or loss of profit.

Author SuzannePosted on Categories Water, WildlifeTags , , , , ,

PG&E announces withdrawal from Potter Valley Project relicensing and auction process

CALIFORNIA TROUT

PG&E announced last week that it was withdrawing from the Federal Energy Regulatory Commission (FERC) relicensing process as well as the effort to sell the Potter Valley Project.  California Trout has been engaged in both proceedings and are hopeful this development will create a favorable environment to continue working towards a two-basin solution. 

From Pacific Gas and Electric:

Today PG&E submitted a letter to the Federal Energy Regulatory Commission providing our “Notice of Withdrawal of Notice Of Intent to File License Application and Pre-Application Document” for the Potter Valley Project.  As a result, PG&E will expeditiously cease all activities related to the relicensing of the Project.  Our decision to cease Project relicensing will also result in the stoppage of our efforts to sell the Project via the Request for Offers (RFO) process.

Although the timing is unclear at this point, we anticipate that PG&E’s action will result in FERC initiating its Orphan Project process.  In accordance with the Orphan process, FERC will provide interested parties the opportunity to submit an application for a new Project license.  We believe this path will allow interested parties more time to prepare for the acquisition of the Project and the ability to submit a License Application on their own terms rather than assuming PG&E’s current application.  If the Orphan process does not result in the issuance of a new Project License, it is expected FERC will order PG&E to prepare and submit a Surrender Application and Decommissioning Plan.

Source: Email from California Trout, read more about the Potter Valley Project at: https://caltrout.org/regions/north-coast-region/keystone-initiative-eel-river-recovery/potter-valley-project-and-ferc-relicensing/

Author SuzannePosted on Categories Local OrganizationsTags ,

PG&E cutting trees near power lines in high fire-risk areas

Guy Kovner, THE PRESS DEMOCRAT

PG&E is trimming and removing trees near a high-voltage transmission line along River Road west of Highway 101, an area the utility says has been plagued by outages because of falling trees.

The work, conducted by a PG&E contractor, will cover a 40-foot swath — 20 feet to each side of a 60,000-volt transmission line that runs along the road from PG&E’s Fulton substation to Forestville, said Deanna Contreras, a spokeswoman for the utility.

It comes as the utility, which serves 5.4 million electric customers from Bakersfield to Eureka, is engaged in an accelerated and expanded campaign to clear trees and brush away from overhead power lines.

Standards adopted by the state Public Utilities Commission in the wake of last year’s wildfires require power companies to maintain a minimum 4-foot vegetation clearance around their lines year-round in extreme fire-threat areas, said Deanna Contreras, a PG&E spokeswoman.

These areas, officially designated as Tier 3, cover a broad zone largely in the Mayacamas Mountains from Cloverdale to Sonoma, including the Mark West Creek area, Sugarloaf Ridge and Trione-Annadel state parks, as well as the west county wooded areas stretching nearly to the coast.

Read more at https://www.pressdemocrat.com/news/8866874-181/pge-cutting-trees-near-power