For the past one, two, three or even four days in northern California upwards of 2.5 million people have had no electricity in their home, business, school or work place. It was no natural disaster that disrupted the power grid, but a deliberate shutting down of electricity transmission by the largest private utility in the country in more than one-half of the counties in the state.
As is normal about this time each year, the Diablo Winds come off of the Sierra Mountains into the valleys and hills of the coastal region of the state. A similar phenomenon occurs in southern California, though there it is called the Santa Ana Winds. Winds of up to 70 mph are common, and if a spark or flame is met by the winds, devastating fires sweep through the forests and homes of the state.
In 2017 and 2018 it was Pacific Gas and Electric (PG&E) equipment that provided the spark for some of the fires that burned thousands of homes and killed more than 100 people. Found responsible for the tragedy, PG&E was liable for about $30 billion in damages and thus filed for bankruptcy in January of this year.
Shutting down the power grid as precautionary measure to prevent the company’s equipment from starting more fires this year is nothing but a measure of self-protection by PG&E.
Being the largest private utility in the country with tens of billions of assets in facilities, equipment and the power providing infrastructure that delivers natural gas and electricity to eight million customers, PG&E in bankruptcy began looking like an easy prey for the vulture funds like Elliott Management run by the notorious predator Paul Singer. Singer and his hedge fund partners swoop in on the debt plagued companies (and countries like Argentina three years ago), buy up the debt of the company for pennies on the dollar then sue and sue until they receive full face value of the debt.
