California ponders PG&E’s future amid protests

Bloomberg

California’s top energy regulator isn’t sure how to fix PG&E Corp. As protesters chanted “No bailout” at a public meeting, California Public Utilities Commission President Michael Picker said the company “lacks a clear vision for safety” and will face a sweeping review following the deadliest wildfire in state history.
“Is there a different model to ensure that we have safe and reliable electric service?” Picker said at the meeting in San Francisco. “If we have a better option to achieve these goals, we have to consider it.”
His comments come as PG&E, California’s largest utility, is under intense scrutiny over the Northern California blaze that killed at least 85 people. Authorities are investigating power lines as a possible cause, and analysts have forecast damages could exceed $15 billion — more than PG&E’s market value. The company’s shares have plunged 45 percent in three weeks.
Picker said earlier this month that he wouldn’t rule out pushing to break up the 113-year-old utility. He also singled out the board as an impediment to reform. But the regulator emphasised during the commission meeting that he’s just asking questions for the moment and hasn’t drawn firm conclusions.
Analysts for Height Securities LLC wrote in a research note that it’s crucial something changes at PG&E.
“We view significant leadership changes, even ownership changes, as an imperative for PCG to begin restoring public trust after nearly a decade of devastating and deadly errors,” analysts Katie Bays and Clayton Allen wrote. State lawmakers, meanwhile, are preparing to introduce legislation to help protect the utility from potential
liabilities from wildfires.
The meeting drew dozens of protesters, including some wearing smoke masks and holding signs saying “No Bailout of PG&E.” The proceedings were halted as security guards escorted chanting protesters from the room. During public comments, several called for the state to take over the utility, which has 5.4 million electric customers in northern and central California.
“We need the public to be in control of the utilities,” said Steve Zeltzer of the United Public Workers for Action.