California finds itself in one of the most serious power shortages in history. Taxpayers and business people wonder how long they can afford to shoulder the mistakes of misinformed legislators and shortsighted utility companies. In fact one of those utility companies, Pacific Gas and Electric, has taken an almost arrogant step in giving its managers bonuses just days before filing Chapter 11 bankruptcy. At worst, it is the rewarding of people who contributed to this crisis at the expense of customers. At best, these raises are just bad timing.

KNX asks PG&E to conduct a thorough reality check. Businesses are going under in this state. Employees are losing jobs and raises are being suspended because of the exorbitant cost of electricity. Yet one of the companies at the very core of the problem, decides to reward 6,000 employees? Not only did PG&E give them out during a crisis, but they are coming from the pockets of suffering customers.

PG&E's rewarded managers, more than anyone, probably understand the depth of this energy crisis. Yet they did not move quickly enough to ease the pain until it was too late. KNX hopes the bankruptcy judge takes that into consideration when it comes time to sort out a payback schedule.

-- PHO (owennos@bigfoot.com), April 26, 2001

Answers

What planet does KNX broadcast from? I'm no fan of PG&E, but it's KNX that needs to conduct the reality check. As a result of what is mistakenly called "deregulation", PG&E had to sell most of their generating plants to other companies. They were not allowed to enter into long term contracts with those companies for power, but had to buy it daily on the spot market. Also under "deregulation" the price PG&E could sell power to consumers was fixed. The price they had to pay the generators was not. The price they had to pay went up, way up. The inevitable result of buying high and selling low is bankruptcy.

Just what moves could anyone in PG&E make to correct the problem? Only the politicians and bureaucrats who still regulate the power industry can fix it.

-- Warren Ketler (wrkttl@earthlink.net), April 26, 2001.

Warren I agree; the job of the PG&E Managers was, and is, to make money for PG&E. Not to "ease the pain caused by "misinformed legislator". Apparently they did a good job under the circumstances of being forced to sell their generation facilities, pay more for power than they could charge for it, not enter into long term contracts, etc. If PG&E wants to keep their experienced people, they have to give them an incentive to stay with a company that has filed for bankruptcy.

-- PHO (owennos@bigfoot.com), April 27, 2001.