California’s utility companies will pay into the state’s wildfire fund in exchange for less financial responsibility when blazes are linked to their equipment.
California’s investor-owned utility companies have agreed to open up their wallets to pay into the state’s wildfire fund in exchange for less financial responsibility when blazes are linked to their equipment.
“The reason it makes sense is that the risk could be so great, and the stocks have been hit so hard, that the value of getting better certainty made it worth putting up money with no return,” said Steve Fleishman, a senior utilities analyst for Wolfe Research. “But in the normal course of the utility, no one would ever do this.”Under state guidelines, a utility or its customers are responsible for paying property damages from wildfires linked to the company’s equipment.
The law takes $10.5 billion from electricity customers through the continuation of a charge on monthly bills that was set to expire next year. In return, wildfire costs that would typically lead to higher bills for customers will instead be paid out by the fund, potentially avoiding price hikes.For their $10.5 billion, the utilities are allowed to tap into the fund to pay wildfire damages that exceed insurance coverage.
PG&E’s participation must be confirmed through the courts and its initial $4.8-billion contribution would not be due until the bankruptcy process concludes, while the other utilities must make their payments by Sept. 10. In order to participate, the state is requiring the company to exit the bankruptcy process no later than June 30, 2020, without raising costs for its customers.
The law also requires PG&E, Edison and SDG&E to spend a combined total of $5 billion on safety improvements over five years, while blocking the companies from seeking a return on investment that state regulators would have otherwise granted. The state can allow the debt to be securitized by issuing bonds that will be paid off by ratepayers over time.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Kirsten Gillibrand releases $10 trillion, 10-year plan to combat climate changeNew York Sen. Kirsten Gillibrand is proposing $10 trillion in public and private funding over the next decade to combat climate change and bring the US to net-zero carbon and greenhouse gas emissions by 2050.
Baca lebih lajut »
A Tube of This $10 Drugstore Red Lipstick Is Sold Every Six SecondsIt's Maybelline's best-selling red.
Baca lebih lajut »
Recovering From Earlier Slump, Alphabet Posts Strong Q2 EarningsInvestors in Google’s parent company Alphabet can stop holding their breath: The company posted stronger-than-expected Q2 2019 earnings Thursday, revealing a net income of nearly $10 billion …
Baca lebih lajut »
Trump administration starts paying $14.5 billion to farmers hurt by the trade warThe Trump administration will begin paying $14.5 billion to farmers hurt by the US-China trade war by the end of August. Farmers received about $10 billion in aid last year.
Baca lebih lajut »