What PG&E Wants
After being forced to declare bankruptcy due to their past misconduct, PG&E is seeking a bailout from California lawmakers. Their plan – which requires legislation – would load the company up with another $20 to $40 billion of ratepayer-backed debt.
How PG&E is Trying to Trick Lawmakers
Proponents of the PG&E Bailout are trying to hoodwink policymakers into believing that its shareholders will take a 20% cut in profits to cover the costs of this new debt. But, at the same time, PG&E and its hedge fund shareholders are demanding that their regulator increase their profits by at least 20% to cover these cuts.
They’re saying one thing but doing another. If PG&E won’t pay for the bailout, who will? The truth is this debt is being paid for on the backs of ratepayers.
How PG&E is Trying to Trick Californians
PG&E wants their bailout bonds to be tax-exempt – that means billions of dollars of lost revenue for California. It’s not right for taxpayers to have to foot the bill for PG&E’s past misdeeds.
The Truth About the PG&E Bailout
The Legislature and Governor already passed legislation to enable PG&E to exit bankruptcy, providing a financial backstop for PG&E and other utilities in the state by establishing a massive wildfire fund. In doing so, the Governor and California legislature stated that they did not intend to provide a bailout for PG&E.
The bailout bonds for PG&E are not necessary to raise the capital the company needs to pay wildfire victims. Other parties have already made proposals with the bankruptcy court to pay wildfire victims immediately and honor protections for union employees.
The only purpose for new legislation is to protect large PG&E shareholders who handpicked the board of directors and are focused exclusively on protecting the stock price at the expense of wildfire victims, ratepayers, taxpayers and creditors.