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Mon Mar 19, 2012, 10:20 PM

PG&E: Pipeline upgrade could top $11 billion

Source: SF Chron

Pacific Gas and Electric Co. executives defended the utility's position Monday that customers should pay for most of a $2.2 billion post-San Bruno pipeline safety program, even as they signaled that additional work in coming years could boost the price tag to $11 billion.

The head of PG&E's regulatory relations division delivered the estimate on the first day of a two-week hearing before a California Public Utilities Commission administrative law judge in San Francisco.

Judge Maribeth Bushey is considering how much customers should pay for the initial $2.2 billion phase of the program, which PG&E began after the San Bruno pipeline explosion in September 2010 that killed eight people.

The utility has proposed that customers pick up 84 percent of the cost of testing and replacing pipelines and installing dozens of automatic shutoff valves on its urban natural-gas system. Company executives say those costs were imposed on them by regulators and were not a direct outgrowth of PG&E's pre-San Bruno failures.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/03/19/BAI01NN2H2.DTL

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Response to alp227 (Original post)

Mon Mar 19, 2012, 10:25 PM

1. Wasn't PG&E already paid for this upgrade?

I had read that they were paid for the upgrade, but pocketed the money instead of actually doing the work.

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Response to w4rma (Reply #1)

Mon Mar 19, 2012, 11:19 PM

5. OT but I think I have read that a certain major telecom (I wont sAy The name of The telecom)

did something similar when it came to upgrading their land service to provide higher speed internet and now their are rumors that now years later they want out of providing all landline service and want to go wireless only.

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Response to alp227 (Original post)

Mon Mar 19, 2012, 10:29 PM

2. I propose you all nationalize PG&E

Fuck them! One of the things I don't miss about California.

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Response to OffWithTheirHeads (Reply #2)

Mon Mar 19, 2012, 11:23 PM

6. Screw that. If they were paid to do the work make them do the work and if they have a

cash issue its their own damn greed that got them into it so they need to suck it up themselves.

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Response to alp227 (Original post)

Mon Mar 19, 2012, 10:43 PM

3. FUCK THIS!

If the public is asked to pay for this, then the PUBLIC should receive all the revenue! If PG & E is unwilling to pay for the full price tag, then the State should take over the company, do all the work and pay for it out of all that new revenue the state is getting from its own energy company.

AHHHHHH

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Response to Firebrand Gary (Reply #3)

Mon Mar 19, 2012, 10:56 PM

4. +1!

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Response to Firebrand Gary (Reply #3)

Tue Mar 20, 2012, 02:02 AM

9. I agree - if the public has to fork out 84%, then the public should then own 84% of the revenues.

If we're forced to be investors, we may as well get a cut.

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Response to alp227 (Original post)

Tue Mar 20, 2012, 12:19 AM

7. Why are "Public Utilities" not Public? Why is this run privately?

Why isnt the state involved in Public Utilities? Why if it criss crosses the state, involves the "Public Utilities Commission" and poses so many issues related to public safety and the well- being of communities, the environment and economy? Why doesnt the state of CA take over and have a massive public works/jobs project that upgrades the utilities across the state, ensures their safety and is for the people and not-for -profit? I personally dont think one penny should be turned over to PG&E. They took money before and failed to upgrade and provide for the safety of California citizens and people DIED because of their failures.

And if we had this kind of project, make a large percentage of the energy generated clean & renewable....

Am I crazy for asking why this cant be done? Can someone please explain why these public utilities are private?

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Response to Pachamama (Reply #7)

Tue Mar 20, 2012, 01:06 AM

8. Because this way they can get the public to pay for stuff and they (executive level people)

dont have to do something like take a pay cut themselves to pay for things like pipeline upgrades or nuclear reactors.

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Response to Pachamama (Reply #7)

Tue Mar 20, 2012, 03:16 AM

10. If they can't pay for it, then I guess they need to get someone else in who can. Has there

been bids taken by other companies who can take over the project ownership? I don't feel like giving a customer bail out to PG&E unless I get ownership in the company for my forced investment.

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