California’s demands on utilities don’t add up

Already driven to the bankruptcy courts by liability over past wildfires, and facing further legal exposure when its equipment sparks new fires, Pacific Gas & Electric generally does not face liability for cutting power supply [Tyler Cowen, Bloomberg Opinion and related with reader comments; Ted Frank on Twitter] “California’s ratepayers like to imagine that someone else can pay the bill… In 2017, the commission refused to let San Diego Gas & Electric raise rates to cover its liability for wildfires that took place in 2007, which is why utilities are now terrified of any risk, however small, that their equipment might start a fire.” [Megan McArdle, Washington Post/Santa Cruz Sentinel] More: Ed Driscoll with link roundup including account of opposition to trimming of trees near PG&E power lines to reduce fire risk; earlier including link to Susan Shelley column.

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