09 October 2019

PG&E Strikes Again

There is a high likelihood of widespread, long term, high wind events in part of California.

The last few times this has happened there have been some fairly catastrophic fires started by PG&E equipment.

So this time PG&E is going to turn off the power over the expected areas at risk for the duration of the time of expected risk.

Apparently that’s a big area for a long time.

Forgetting the massive inconvenience, converging on outright danger, that such an action will levy on the citizens of California, PG&E is looking at the  REALLY important aspect of their impending action: revenue loss.

As an offset to that extremely disturbing phenomenon PG&E is instituting the “Fire Danger Service Fee”.

It will be levied in advance, starting now.

It will be the expected gross revenue loss times the “Fire Danger Service Fee Uplift” (25%) divided by the number of rate payers.

If the actual revenue loss turns out to be less than estimates, PG&E gets to keep the total levy; “the service rendered was so effective that significant fire danger over expectations constituted a such a valuable service that it is only fair that the Company gets to keep the difference” was a statement issued by PG&E’s Vice President of “Community Communication Services” today in conjunction with the Service Fee’s announcement.

If the actual revenue loss is greater the rate payers pay the difference, calculated the same as the initial charge.

There was silence about the value the community will receive for this “adjustment service” but it is thought to be extensive.

All of this is only fair; after all, there should be a charge to the rate payers for the service of avoiding having their towns burned down.

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