Texas electric firm files for bankruptcy citing $1.8B in claims
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Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#2Isnt this a common tactic, to declare bankruptcy in face of large liabilities?
Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#3This is a trend. PG&E in CA started it and now Texas... I guess climate change is risky business after all.
Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#4Isnt this a common tactic, to declare bankruptcy in face of large liabilities?
Privatize the profits and socialize the losses
Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#5Isnt this a common tactic, to declare bankruptcy in face of large liabilities?
No question about that. The novelty is that a single snow/ice weather event could push a large utility operator into bankruptcy
Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#6Isnt this a common tactic, to declare bankruptcy in face of large liabilities?
That's kind of what bankruptcy is for, overtly. It's not like some kind of clever hack.
Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#7Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#8Isnt this a common tactic, to declare bankruptcy in face of large liabilities?
No question about that. The novelty is that a single snow/ice weather event could push a large utility operator into bankruptcy
Or like California is it that deferring costs (winterizing in TX and fire prevention and forest clearing in CA) makes executives look good while kicking problems down the road, maybe even decades down the road.
Here in New Zealand the line network operator in the city of Dunedin has underinvested in the city line network, so instead of replacing power poles, they have simply changed the rules so that 2,500+ unserviceable old decaying power poles are suddenly within spec [1]... Meanwhile they are raising prices [2]
I have little doubt that when a major storm hits knocking out 100s or 1000s of power poles, they will simply blame climate change. Yes, the climate is changing, but the reason they will have failed is terrible, terrible management.
[1] https://www.rnz.co.nz/news/national/366398/thousands-of-powe...
[2] https://www.stuff.co.nz/business/industries/124391663/aurora...
Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#9Re: Texas electric firm files for bankruptcy citing $1.8B in claims
#10This is a trend. PG&E in CA started it and now Texas... I guess climate change is risky business after all.
Or you could say that CA and TX are demonstrating that deregulation is a failed strategy.
"Vital infrastructure" and "market driven" are rarely a good match.