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PG&E – Components of an Agreement, Part 1

image credit: Napa Valley Register
John Benson's picture
Senior Consultant Microgrid Labs

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

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  • Apr 14, 2020
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This paper will go well over my usual 3,000 word limit, thus, I have broken it into two posts. This (first) post addresses the elements of the bankruptcy settlement, and supporting agreement (like the financing of this settlement and the agreement with the State of California), the current amended reorganization plan, and the evolution of the microgrids that PG&E will use to mitigate future Public Safety Power Shutoffs (PSPS).

The second post, which will posted a week after part 1 will address the CPUC’s Proposals for PG&E’s reorganization, which is over 3,000 words long by itself. Even though the second post is longer than I prefer, it contains many details about what PG&E will probably look like going forward.

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Matt Chester's picture
Matt Chester on Apr 14, 2020

Thanks for the detailed overview, John. Always great to have you break it down. 

I was curious going into it how the current pandemic affected the conclusion of this situation, and saw you included: 

But the recent volatility in the financial markets caused by the coronavirus pandemic apparently softened Newsom’s stance after PG&E lined up commitments from investors promising to buy up to $12 billion in company stock

How different do you think PG&E's situation looks today if the world wasn't disrupted?

 

John Benson's picture
John Benson on Apr 14, 2020

Hi Matt

Thanks for the comment.

Answer: Not much, except perhaps the timing was shortened. Newson's people have been in negotiations with PG&E for many months, and PG&E had basically conseded to all of his demands.

I believe in February, Newsom realized he was in the fight of his life with COVID-19, and he quickly cleared the decks. As I mentioned before, we tend to avoid the normal political dances, and quickly reached a consensus on what needed to be done. and did it. In this case speed was REALLY important.

Newsom is having a press conference today where he is describing his plan for exiting the "shelter-in-place" mode. He is working with Washington and Oregon.

-John

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