For decades, electric utility companies have been the last to deploy cutting edge American technology. Using the Energy Infrastructure Reinvestment program, we are moving away from “death by pilot” to utilities returning to their role of deploying cutting edge American technology to meet economic growth while saving ratepayers billions of dollars. “PG&E plans to use the financing for several infrastructure projects that will allow the utility to meet its net-zero emissions goals while aiming to keep up with demand growth, the company said. Potential projects include capacity increases to its network of hydroelectric dams, new batteries coupled with transmission upgrades and tapping into “virtual power plants,” networks of batteries and energy management systems that can help meet local demand needs. “This loan is going to reduce greenhouse gases. This loan is going to increase the useful life of energy infrastructure in California,” said Chris Creed, chief investment officer of the Energy department’s Loan Programs Office, in an interview. “This is going to replace needed pieces of equipment, and all the while, do so while saving rate payers money.”
Where is this money coming from? For what specifically?
I wish Texas could get that kind of money for nuclear power. Hmmm…
Let's say that PG&E takes this 15-billion-dollar loan (at low interest rates) and uses that money to build out it's CA grid infrastructure to supply the electricity demand that is expected to increase from green energy use. All that 15 billion goes into capital projects. How is it then that PG&E, a company that has clearly demonstrated that its maintenance of existing assets is woefully inadequate, can be counted on to manage any new assets coming out of this 15-billion-dollar loan? Here is PG&E's business plan: Install infrastructure over the past 124 years, then leave it to fail in place by failing to maintain it. Instead, reward top executives with lavish bonuses for thinking up this clever business plan. The poorly maintained assets fail (ticking time bombs), causing billions more in property damage and loss of human life. That property loss includes PG&E infrastructure that PG&E cannot afford to replace. However, PG&E, now teetering on the edge of bankruptcy, is allowed to claw back those losses through a series of rate increases rubber-stamped by the CPUC (CA Public Utilities Commission), tasked to approve or deny any and all rate increases petitioned from PG&E. PG&E customers get to pay for all this and more.
Reminds me of the Chicago patronage schemes. Why does this money have to go to useless Net-Zero applications instead of just improving core infrastructure. This innovation on demand via corrupt selection of favored parties shows only that any claim to understanding business has long ago left the Director and his choices are just to further political ends. No doubt he will land some fancy, high-paying gig that will also be measured by how much money he can piss away. $15 B!! Should have just improved transmission lines to existing assets or backing of a new nuclear plant. Instead of picking up the $20 dollar bill on the sidewalk, the theory is to take money at gunpoint from people walking by on the sidewalk to give to the addled addict grifting on the street.
So, the largest economy in the US can't foot the bill to improve their infrastructure and is relying on a low-interest loan from taxpayers nationwide? Seems like California should realign its financial priorities due to the amount of wanton misuse of taxpayer funds and instead of relying on taxpayer money, the priority should be the government demanding for State Leadership to be accountable for the way they utilize their revenue.
I’m all for encouraging investments in green infrastructure. I just don’t trust PG&E to do it well. Hopefully this money comes with LOTS of oversight and strings attached. Frankly, We should be dismantling PG&E and selling off (or giving) the distribution infrastructure to local communities and new municipal power entities, and let CAISO run the transmission. Not propping it up! I’ve seen how PG&E uses money. The more they spend on new infrastructure, and neglect the existing, the more money they’re shareholders make. It’s gross. Not at all an efficient way to use money. No wonder our rates are so high. I’m so grateful to live in a city (alameda, CA) with municipal power, where “profits” from the electric utility go straight back into city funds. Small local governments can do a good job in efficiently managing utilities. They do it all the time in many parts of this state and across the country. We don’t need to continue bloating PG&E.
Wow. With respect, this is just stunning. A full $15 billion dollars of low interest loans to lower the rates of customers of one of the worst-run utilities in the largest and most progressive state in the union... even as it increases the burden of American taxpayers to pick up the tab. Boo! Sadly, this looks exactly like what reporting has said is an attempt by a Democratic administration to dole out, before the sun sets on its term, as many tens of billions in gov't grants and loans as possible to favored parties. Embarrassed for all involved with this miscarriage of governance. We need to get gov't out of picking winners and losers—it stinks at it—and back to competing based on free-market and free-enterprise principles.
I wish the Feds used this loan as leverage to get PG&E to allow for a real #communitysolar program in California. Missed opportunity here.
Someone will ultimately pay for these innovative improvements, either the rate payers or the shareholders or both. But it is wonderful to see utilities continue to take the lead in applying innovative approaches to benefit key constituencies. Kudos to all involved!
Business Strategist | Growth through Data | Impact Advisor
6dFinancing remains to be approved.. What are Virtual power plants exactly? What type of energy does it use?