from fwd, Bob Morris:
Re: Calif. Gov Davis and PG&E filing for bankruptcy hours after he spoke to the citizens of California about the power crisis
"It is not a slight problem now," "It is way out of control. It is certainly a black mark. If Davis was toast before this, he is burnt toast today." Dan Scotto, bond analyst for PNB Paribas.
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I thought this morning, why has Davis and the state piddled around and not done the obvious---seize the utilities and infrastructure. Then I realize it would do no good. Then they would have to buy the power anyway and the state would foot the bill. Without fed level regulation of pricing and access, the state govt is in the same boat as the utility.
That leaves self-sufficiency plans, generating our own. That might be possible with extreme rationing and scheduled brown outs---but then what? Building up the infrastructure would take at least a couple of years---plenty of time to dismantle a half started nationalization process.
So, my guess is Davis and the state govt will just play stupid and let the bankruptcy court sort it out while the rates go sky high and the whole system crumbles. Hopefully it will at least take the rest of the country's power systems with it. Misery loves company.
Chuck Grimes