It looks like PG&E learned its lesson after it was blamed for some of the largest wildfires in California history.
More than 2M Californians across more than 800k households will be without power as PG&E looks to prevent forest fires. Somebody listened to Smokey. The forecast calls for historically high winds and low humidity in the region, so PG&E did the logical thing: blackout.
On Wednesday morning, the power players shut off more than 513K customers’ power across more than 22 counties in the Bay Area and beyond, and the second and third phases were expected to hit another 276K across Central CA.
Some other cities that weren’t on official PG&E shutdown maps also lost power, but PG&E said they aren’t sure what’s going on with that. In completely unrelated news, former Enron CEO Jeff Skilling was released from jail earlier this year…
When does it end?
PG&E said it expects winds to die down by midday Thursday, but by then the damage could already be done. According to analysts at Stanford, the shut down could cost the state up to $2.5B, depending on how many businesses are affected.
When it rains it pours
As if suddenly losing power wasn’t bad enough, PG&E was having tech issues as the shutdowns began. Users were able to visit the company’s site to see if their region would be affected, and the website promptly crashed.
The bottom line…
Dealing with a bunch of angry-yet-somehow-still-super-chill Cali bros is even PG&E’s only fire drill. The judge presiding over its bankruptcy opened the door for Elliott Management, bondholders, and wildfire victims to propose their own Chapter 11 plans for the embroiled power company.
According to PG&E the move could allow Elliott and the gang to grab control of the firm at a steep discount. The power company still stands by its original Chapter 11 plan, saying it’s best for everyone involved… especially them. By the end of the day, shares had sunk 27%.
Bottom line: “This should be happening in Beirut, not the Bay Area…”