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In restructuring, PG&E ‘will have to cater to customers who have other ways to meet their power needs’

first_img FacebookTwitterLinkedInEmailPrint分享Wall Street Journal:When it emerges from what is expected to be a long and complex chapter 11 reorganization, it’s likely to be a very different business—no longer the sprawling provider of natural gas and electric service to 16 million Californians.While wildfire liabilities that PG&E pegged at more than $30 billion were the main factor behind its bankruptcy filing, the San Francisco-based company faces far broader challenges. Long a utility accustomed to having a monopoly, in the future it will have to cater to customers who have other ways to meet their power needs.The traditional business model of electric utilities is under siege as homeowners, corporations and new community groups seek to generate or purchase power for themselves, a trend that is particularly advanced in California. All the while, PG&E has become deeply intertwined with California’s renewable energy and carbon-reduction goals, requiring it to sign expensive long-term contracts while also facing political pressure to keep rates from rising too fast.All options are going to be on the table in a bankruptcy proceeding, experts say. The possibilities include breaking up the company, selling off its natural-gas business or shedding some of its more than 100 hydroelectric dams. San Francisco and other cities have also said they want to explore running their own utilities in what has been PG&E territory.All options are going to be on the table in a bankruptcy proceeding, experts say. The possibilities include breaking up the company, selling off its natural-gas business or shedding some of its more than 100 hydroelectric dams. San Francisco and other cities have also said they want to explore running their own utilities in what has been PG&E territory.“There’s a larger issue at hand regarding how utilities are coping with new technology,” Mr. Peskoe said. “Maybe this is an opportunity for the industry to think about this differently.”PG&E said in the bankruptcy filing that it wants the ability to end hundreds of long-term power contracts with wind and solar farms, a move that could hurt the nation’s renewable-energy industry. PG&E has $42 billion in contractual commitments to buy electricity, more than half for wind and solar power to meet California’s aggressive renewable-energy goals. NextEra Energy Inc., a Florida utility with a large renewable-power-generation business has asked the Federal Energy Regulatory Commission to assert jurisdiction over these contracts. The commission ruled last week that it would review the matter alongside the bankruptcy judge.California Gov. Gavin Newsom has also expressed worries about the potential cancellation of the contracts, which could hurt the state’s ability to meet aggressive goals to cut greenhouse-gas emissions and combat climate change.More($): Wildfires Drove PG&E to Bankruptcy, Where Utility Must Change to Survive In restructuring, PG&E ‘will have to cater to customers who have other ways to meet their power needs’last_img read more

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‘CBL Loans Focus on Poverty Reduction’

first_imgCentral Bank of Liberia (CBL) Executive Governor, Dr. Joseph Mills Jones, has assured the Union of Liberian Associations in the Americas (ULAA) that CBL and its board of governors remain committed to sustaining economic growth in the country despite the negative propaganda against the Bank. Speaking at a program marking the inauguration of officers of the ULAA leadership in the US recently, Dr. Jones emphasized that the CBL loan initiative does not only focus on micro economic stability, but is also waging war on poverty in the country.He said the initiative should be the collective responsibility of all Liberians and not the CBL alone. The CBL boss clarified that claims in some quarters in Liberia and the US that the Bank was misusing the country’s money are misleading and called on Liberians in the Diaspora not to give credence to such assertions.Governor Jones explained that the CBL has, over the years, cooperated with central government in smoothening it’s spending to keep certain national development programs on track by providing short term borrowing facility to the government.He, however, challenged Liberians in the Diaspora to foster economic growth and development back home.The CBL boss is under fire by some politicians on Capitol who have accused him of politicizing the CBL; an allegation the Governor has vehemently denied terming it “empty talk.”Jones has challenged his accusers to adduce evidence that he is using CBL money to run a political campaign, but his accusers are yet to come forward.They recently enacted a legislation amending the CBL Act to ban him, his deputies and the board of governors from contesting any political seat for three consecutive years after the expiration of their respective tenures.Several society groups including the business community who benefits from CBL loan schemes have challenged the bill in court terming it as exclusion and a blatant violation of the Liberian constitution.The actual whereabouts of the bill is still not clear amidst conflicting reports that it is on President Ellen Johnson Sirleaf’s desk, while others are suggesting the President has already signed it into law. Dr. Jones’ second tenure as Governor of the CBL will end in 2016.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)last_img read more