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Thursday, January 31, 2019

Bankruptcy hurts alternative energy

Old taunt: Get woke, go broke.

New: Green energy leads to bankruptcy.

California's largest utility -- Pacific Gas and Electric -- is in bankruptcy court because the state found it liable for deadly forest fires.

This is bad news for green energy because the utility has subsidized that industry for years.

The utility wants to shed $42 billion in contracts with 350 energy suppliers, mostly solar and wind farms. In many cases, the utility is the sole revenue for the company.

Dumping the contracts would be a death knell to the Democrat Party's kooky plan to get energy solely from "renewable" sources in 25 years.

The contractors want to do an end run around the bankruptcy court by appealing to the Federal Energy Regulatory Commission.

"Last week, PG and E solar provider NextEra asked the Federal Energy Regulatory Commission to use its authority under the Federal Power Act to order the utility not to 'abrogate, amend or reject in bankruptcy any of the rates, terms and conditions of its wholesale power-purchase agreements,' including hundreds of megawatts of decade-old solar farms that are selling power at far above today’s market rates. Consolidated Edison, which counts PG and E as an offtaker for nearly one-third of its renewable energy portfolio, also weighed in last week to ask FERC to expedite NextEra’s request," Green Tech Media reported.

"Late Friday, FERC offered these companies a lifeline, with an order declaring that it has 'concurrent jurisdiction' with federal bankruptcy courts over whether utilities in bankruptcy can breach their contracts."

Concurrent? The Constitution specifically grants the federal government with bankruptcy oversight. Energy regulation is not mentioned.

Pacific Gas and Electric "filed bankruptcy as the 'only viable option' to escape potentially $30 billion worth of liabilities for sparking major wildfires in 2017 and 2018. State investigators found the utility sparked a dozen major fires in 2017 through poorly maintained powerlines and equipment," the Daily Caller reported.

Instead of spending $42 billion on bogus energy production, the company should have spent a couple of billion bucks making sure its power lines are safe.

But then California would not have the forest fire to "prove" the conspiracy theory about global warming, which led to all that money blown on windmills and mirrors.

19 comments:

  1. California is in total meltdown mode. What a disaster of a state. There is nothing there keeping Silicon Valley companies there - they can operate anywhere. If they leave, California will be like a third world country.

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    1. Umnnhhhh....3rd world countries have small enclaves of ultra-rich and large swaths of lower-middle and poor classes.

      *Cough* that describes California pretty well.

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  2. Did you know there are solar farms in Canada? Do you know what happens in Canada? (hint: it snows) Do you know how they remove the snow from the panels in order to generate electricity and why? (hint: it's not solar because they do not produce enough electricity to perform that function. P.S. I worked for a panel manufacturer that did a warranty RFQ for this. True story, we got the contract.

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    1. Yah....drove to northern Wisconsin today and observed the small (2' x 3') solar panels which are roadside and power small warning lights....covered with snow. Oooops!! No warnings today!!

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  3. Massive oil reserves right off the coast. Nope, can’t drill.

    A gazillion gallons of water in the Sierra Nevadas. Nope, can’t water your lawn.

    Multiple sanctuary cities filled with shit and needles. Nope, no Wall.

    Cali is this country’s Venezuela. Secede, stat. FORCE them to. You want $1 trillion in federal money for those azzclowns once the next shaker hits? No way, dada. It’s like giving cut-rate car insurance to Lindsay Lohan.

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  4. Businessmen are cowards, and the left knows this. That is why they will always remain an endless source of danegeld money for leftist causes.

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    1. Ask Memories Pizza how well being brave worked out, when the Left can muster mobs to attack and conservatives can't muster them to defend.

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    2. Being brave doesn't always mean you get the result you want, it only means you do what's right even when you're terrified.

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  5. Let them go bankrupt! The Feds should require an ending to any subsidized energy by the company -- let the State of CA subsidize it if it wants.

    They should have been safer. The leaders and shareholders should all lose equity and any jobs paying over the US median of about $55k / yr.

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  6. Hate to tell you but the old taunt is still the new taunt.

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  7. This will be fun to watch and very interesting. The state forced operational regulation on PG&E that prevented it from doing normal right of way maintenance on its system. Insulated wires would not have prevented this either. So if you are financing a solar or wind project you have to watch this very carefully because if you can step and change a PPA before its term these projects are no longer bankable.

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  8. Wind and solar energy are not profitable. Period. They are also not reliable. Any investment or expenditure on them is just throwing money down a rathole. - Elric

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    1. The government subsidizes it with our tax money, whether is in a given state or the nation. Without subsidies you would have no such industries.

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  9. Our federal system was designed to let the states experiment with stupidity if they wanted to, as long as they didn't impose it on the rest of us. My mother had an old saying: "everyone has a purpose in life, if only to serve as a bad example." California is our bad example. Let them stew in their own meltdown.

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    1. Just don't let the runoff from the meltdown head our way. Let's build a wall around California! Hmmmm. Where's Lex Luthor when you really need him?

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  10. When I was in junior high 45 years ago they told us that fossil fuels were running out but that solar power was just around the corner. (They were already killing nuclear energy) That was about the time the first electricity windmill went up in Altamont Pass.

    Without massive government subsidies nobody would buy solar panels, and the people who have still need to buy energy from utility companies. This after we have poured enough tax dollars into green energy research to build 10 walls between the US and Mexico and a bridge to Hawaii too.

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  11. Does anyone remember just how long solar panels last? It's a fools game unless you're using the sun'd heat to prewarm your hot water. Even then, there are issues, but at least you aren't using other people's money!

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