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California Wildfires, Utilities and Grid Resiliency - Part 2

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John Benson's picture
Senior Consultant Microgrid Labs

PROFESSIONAL EXPERIENCE: Microgrid Labs, Inc. Senior Consultant: 2014 to Present Developed product plans, conceptual and preliminary designs for projects, performed industry surveys and...

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  • Nov 26, 2019

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The combined impacts of the title of this paper is a hugely complex problem, and resolving it will be painful for all parties. The state of California, and specifically Governor Newsom, realized this early this year as PG&E started talking about filing for Chapter 11 bankruptcy. The State of California assembled a strike force to create a report regarding the situation. This report was issued on April 12, and is summarized in this paper.

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Matt Chester's picture
Matt Chester on Nov 26, 2019

Great read, thanks John.

Regarding PG&E's financial viability in the face of DA, CCA and DER, I expect that PG&E's financial management team have already modeled these, and can comment on this, although these models are based on assumptions that may, or may not be realistic

I imagine the indemnification clause is all factored into their analysis as well, but that remains to be the one thing that's causing the most issues and what makes PG&E's situation more difficult than similarly sized and arranged utility in other areas

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John Benson on Nov 26, 2019

Thanks for the comment, Matt.

The PG&E resolution could go in many different ways.

However, as next week's post will point out, there is a high probability that that a major segment of PG&E's Service Area will be municipalized, and in the process a very large new municipal electric utility will emerge. Except they are not new but over a hundred years old.


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