Government Gas & Electric

Like North Koreans, power-less Oaklanders could gaze
at the lights of a city a few miles away (Chronicle photo)

After the wildfires, evacuations, and PSPS ("Power Safety Power Shutoffs"), California politicians are, er, feeling the heat to do something about PG&E, the utility they had a hand in bankrupting. Governor Newsom threatens a government takeover:

The utility must exit bankruptcy by the end of June to access a new state fund that would help PG&E pay for damage from future wildfires caused by its equipment.

But if the company doesn’t reach a resolution quickly, Newsom said, a state takeover is on the table, a position the governor has previously been reluctant to embrace.

Even the wisest Latina couldn't run PG&E.

(From pge.com)

She has to

Deliver electricity and natural gas reliably to 16 million Californians;

Charge customers as low a rate as possible;

Earn a profit for investors, including a regular dividend;

Clear trees and brush to reduce the risk of wildfires;

Provide generous salary, medical and pension benefits in accordance with union contracts;

Repair and replace its aging infrastructure with less efficient and more costly carbon-minimizing energy sources (principally windmills and solar, but not nuclear);

Decommission Diablo Canyon, its last nuclear power plant, for an estimated $4.8 billion beginning in 2024;

Meet Environmental, Social, and Governance (ESG) standards;

Pay $billions in damages for its culpability in the 2017-2019 wildfires.

Transfer hundreds of thousands of acres to tribes and public agencies per agreements dating back to 2001.

Your humble blogger is strongly in favor of a government takeover of PG&E. Then the credit or blame for the outcome will be clearly assigned to one party, not diffused over a multitude of groups who have a say in PG&E's governance.

If "Government Gas & Electric" succeeds, then it will be the first major piece of evidence that socialism works, i.e., government can operate a major non-defense sector of the economy. If it fails, then the reasons should become obvious after a few years. In either case, the lessons learned will reverberate far beyond the confines of Northern California.

After-thought - WSJ:

Mr. Newsom, a Democrat, said he will compel PG&E to make massive investments in its infrastructure to improve the safety of the system and reduce the need for pre-emptive power shut-offs.

PG&E was "compelled" to make massive investments in wind and solar farms to meet California's climate-change goals. Now the Governor wants to compel safety and always-on power. Just take it over, already, so you can show us how it should be done.