Pacific Gas and Electric….. And their terrible track record. This company shouldn’t exist.
I’m not a financial advisor, just a smooth brained idiot who is sick of smoke.
PG&E (PGC) over the years has been a massive problem for California residents. The company continues to increase rates and only pass the money onto their stock holders. Little to no maintenance has been done on their power distribution network over the years in the name of cost cutting. This has reached a tipping point over the last decade where their lack of maintenance has caused MANY deadly fires and loss of life. Here are some of the bigger events (picked out of HUNDREDS of incidents):
The San Bruno Gas Explosion: Poor (or no) maintenance caused a massive gas leak in the city of San Bruno in 2010 leading to a massive explosion.
The Camp Fire: This one ripped through northern California devastating the town of Paradise killing 85 people. Once again, a completely preventable fire if maintenance was kept up. This fire was an absolute monster. Burning at a rate of over a football field a minute, CalFire could only gain control at the edge of Chico. Words cannot explain how absolutely terrifying this fire was for everyone, historically bad.
Now currently active is the Dixie fire: Instead of making repairs to the grid, PG&E wanted to make stockholders happy and keep costs low. More injured, more homeless, more liability.
The power grid they maintain is getting so bad that they’re forced to shut off parts of California just to prevent disasters instead of doing maintenance. Power reliability in California, in PG&E’s service area is getting worse and worse. Imagine losing your power when its 108 out, imagine grandma’s oxygen machine shutting down while she chokes on the thick smoke from the fires that the same company who shut off the power caused. They need to be held liable or get bought out, preferably switch to a public utility plan like the Sacramento area has (SMUD) who has been rock solid over the years.
With the absolute world of hell the state is about to unleash on Pacific Gas and Electric, along with thousands of independent civil suits, the $9.50 price seems drastically high. No good will come of this company until it gets completely restructured from the ground up.
I’ll be grabbing a short position when the time is right. what are your thoughts?
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July 21, 2021 at 09:00AM