Need to talk about $PGE. They are a regulated utility, everyone's favorite whipping boy. CA doesn't shield their utilities from lawsuits as other states do, and this is a problem.
$PGE is squeezed by resi solar, by state mandates, and by culpability for any one of their tens of thousands of pieces of equipment failing. Understand that electrical infrastructure is not bulletproof. It does fail even if proper maintenance is done.
A utility is obligated to serve all customers, even if they choose to build / live in an area conducive to wildfires or other natural disasters. They can't say no. They must connect you and they must do so at a reasonable cost or there will be hell to pay.
Did $PGE equipment cause a recent fire? Why does it matter? They are obligated to put that equipment there, obligated to accept a predetermined rate of return on that equipment, obligated to proved least cost service, and they hodl the bag if anything goes wrong, WHICH IT WILL!
This equipment handles a massive amount of energy! It is not infallible! Transformers fail, fuses fail, power lines go down, and when something transmitting energy fails, it will release energy, even when properly maintained. It's a fact.
This is getting ridiculous. I hope CA manages to destroy their PUBLIC utilities for the 2nd time in less than 20 years (the botched de-regulation involving Enron being the first) and see where that leaves them. They deserve it.
Follow up - I wish I'd have had the foresight to short $PGE on Thursday/Friday last week. This EXACT same price action happened last December and I wasn't paying attention this time around. Just because the regulatory regime is FUBAR doesn't mean we shouldn't make bank.
