Specialist
Former VP, Safety & Health & Chief Safety Officer at Pacific Gas and Electric Co (PG&E)
Agenda
- Pre-emptive blackouts and impact of PG&E's financial constraints on required investments
- PG&E's increasing liabilities and update on restructuring plans
- Commentary on PG&E's operating capabilities and their best and worst scenarios
Questions
1.
Could you outline PG&E’s historical approach to wildfire prevention and why this seems to have become an increased problem in recent years?
2.
What proportion of PG&E’s overall CAPEX is allocated to wildfire prevention? The company has spent around USD 6bn per year in the last few years, well above depreciation, and even with the bankruptcy, that CAPEX is increasing to USD 7bn per year over the next two years. Do you think it is the right kind of spend, and ultimately, how long could this wildfire prevention project take?
3.
Could you expand on the labour availability for the vegetation management work?
4.
Would you say labour inflation is an issue, given current demand, and are there competing industries for the vegetation management work?
5.
How would you assess the effectiveness of the public safety power shut-off, which is impacting millions of people in California? Do you think the caution is excessive? Do you think it is more of a year-round or a seasonal issue?
6.
How effective do you think these PSPSs [public safety power shut-offs] are in preventing wildfires? Is it perhaps done more for PG&E’s liability management?
7.
Could you contextualise the significance of the jumper cable and its possible role in the Kincade Fire?
8.
PG&E’s CEO and President Bill Johnson recently suggested that fixing the system could take up to a decade. Do you think he is playing an expectations management game with this comment? Is it realistic to get done in a decade?
9.
Do you think distributed generation is really the only solution, or does even that have its limits in California?
10.
Do you think PG&E’s USD 7bn per year spend is enough? What combination of PSPS and spending is necessary to solve these problems?
11.
Hypothetically, if PG&E had no concerns over CAPEX and permits to obstruct its work, what other bottlenecks would still remain? You outlined the problems with labour on vegetation management – are there equipment or other skillset shortages that could slow the mitigation of the wildfire issue?
12.
Do you have any familiarity with the IBEW [International Brotherhood of Electrical Workers] contracts? Is there anything you think could slow down work?
13.
Are there any potential constraints on the equipment side?
14.
How would you say the bankruptcy process has been affecting PG&E’s efforts, either helping or hindering?
15.
What is your view on Governor Newsom’s approach to the bankruptcy proceedings and reorganisation?
16.
Do you think the issue could clear on 30 June, the proposed date for PG&E’s emergence from Chapter 11, or do you think recent events present any risk to that?
17.
You mentioned the potential for state and local municipalities to take over parts of or all of PG&E. Is that just fantasy? Are there any other interest groups who might pursue this?
18.
Are there any non-core PG&E assets – whether real estate or small businesses – that could potentially be sold without affecting operations?
19.
What would you watch for in the coming weeks and months for PG&E?
20.
Do you have any final thoughts to share on the current state of PG&E?
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