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by uxp
2420 days ago
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> PG&E can’t pay out more in dividends by shortchanging operations and maintenance. They have before. https://www.sfgate.com/bayarea/article/PG-E-diverted-safety-... edit: obviously this is a lot more nuanced than simply eliminating the O&M line item and diverting that income into dividends. In this instance, they had higher than expected income resulting in a positive cash value which was due to MANY factors, but they simply decided to add it into the dividends rather than into O&M, which they knew was running lean. edit 2: You're working on the assumption that they are operating at a 100% accurate estimation schedule. You know that this is an impossible task, and so I think we are arguing that the delta between the actual operating costs and the estimated operating costs, when it has been a positive value resulting in unexpected monetary value, has typically been diverted in this case to dividends rather than to maintenance. Even if that value has been 2 to 5% per year, it's still millions of dollars. The fact that it was diverted to compensation rather than maintenance indicates a tendency of the PG&E entity to value it's corporate officers over the public (eg, spending money on maintenance is investing in the public safety, whereas spending money on dividends is the officers cashing out and taking a personal win). This is I think the biggest breakdown of how public utilities operate in this economy. They are largely private companies with a mandated monopoly, so despite being a private or publicly traded company, they _should_ act like a publicly owned or municipally operated company. We (the people) have given them an extremely liberal license to operate, and they should return that favor in kind. When they don't, they've broken the social contract. |
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