Actually, I believe PG&E is already in bankruptcy . . .
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PG&E’s Bankruptcy Judge Leaves Door Open to Shedding Renewables Contracts
http://www.greentechmedia.com/articles/read/pge-bankruptcy-judge-leaves-door-open-to-severing-renewable-energy-contract#gs.rxti9r
Bankrupt California utility Pacific Gas & Electric won a victory Friday in the legal battle over whether it can shed billions of dollars' worth of renewable energy contracts. But the ultimate fate of those contracts is still up for appeal.
On Friday, Judge Dennis Montali, who is overseeing PG&E’s Chapter 11 proceeding, ruled that the bankruptcy court, not the Federal Energy Regulatory Commission (FERC), has final jurisdiction over the whether the utility can cancel or amend up to $42 billion in power-purchase agreements.
PG&E, which filed for bankruptcy protection in January with a projected $30 billion in liabilities from wildfires in 2017 and 2018 believed to be caused by its power lines and equipment, has argued that it needs the freedom to renegotiate these contracts to return to solvency.
At most risk are PG&E’s older PPAs, signed in the early days of the state’s renewable portfolio standard when solar and wind were much more expensive than today. In particular, the renewable energy units of Consolidated Edison, Berkshire Hathaway and NextEra Energy face significant risk.
PG&E is the largest offtaker for Con Ed’s renewable energy portfolio, at about 29 percent of contracts. And the average PPA rate for those projects is about $197 per megawatt-hour, “significantly above market rates for new solar” that are closer to $25-$30 per megawatt-hour, according to analysts at Credit Suisse.
Last year, Berkshire Hathaway Energy’s 550-megawatt Topaz solar farm, which serves PG&E, saw its credit rating cut to junk status by S&P Global, while NextEra Energy’s 250-megawatt Genesis Solar project, also serving PG&E, was downgraded by Fitch.
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Mad Poet Strikes Again.
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