Economist: PG&E plan is a ‘bailout’

09.04.19

CalMatters

An economic analysis funded by hedge funds that hold $10 billion in PG&E bonds says creditors, customers and taxpayers would shoulder costs if the bankrupt utility is able to tap a $20 billion bond to pay for its wildfire liabilities…

[Christopher Thornberg, of the Center for Economic Forecasting and Development at UC Riverside]: “This is a bailout plan designed not to stabilize the utility and protect the state’s economy but rather to maximize return on investment for the hedge fund shareholders.”

Thornberg says ratepayers would subsidize a portion of PG&E’s losses through increased charges.

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