Re:‘This Did Not Go Well’: Inside PG&E’s Blackout Control Room
by arbitrary_name on Sunday October 13, 2019 @01:40AM
(#21238576)
Use the threat of liabilities to get a sweetheart price from the hedge fund owners whos hands are tied. Offer bondolders a good deal, and refinance using state bonds to handle the liabilities.
Re:‘This Did Not Go Well’: Inside PG&E’s Blackout Control Room
by dsfyu404ed on Sunday October 13, 2019 @09:50AM
(#21240328)
Don't forget the "legislate away the liabilities after you become owner" part.
In one scenario, CA keeps legislating more and more liabilities to PG&E until it goes bankrupt, in which case the state could take it over, but would also be saddled with those same liabilities.
Alternatively, they step back the liabilities and try to negotiate a deal with PG&E to take over, which would essentially be a buyout. However, what would the incentive be to sell a profitable company with a natural monopoly in one of the nation's largest power markets? I'd imagine the investors would price it so high that the deal would quickly become unattractive to the state.
If they went the expropriation route, that would be a hell of a court case to watch.