Who Could Have Seen That Coming?! (PG&E Update)

On January 14th, NSFW wrote the following:

“So that means there is something that is still POSSIBLE…not likely, but possible. That PG&E is basically bluffing and that California will announce a further form of bailout before the bankruptcy actually goes into effect. While both the company and the state have both publicly stated that they see no other option than bankruptcy, remember how back in November the state head of public utilities commented that he couldn’t foresee the possibility of letting the company go bankrupt? Then the stock shot up about 37%?

As of writing, shares are trading at $8.20. That means the company is still priced at about $4.25 billion. Moody’s and S&P dropped PG&E’s credit ratings to junk last week, but several levels higher than their credit rating was in 2001 when this happened (Moody’s Baa vs Caa2). Bonds are still trading in the 75-85* range vs 55 back in 2001. Imagine, what happens when the markets price for bankruptcy and California even mentions some form of bailout or further protection. Obviously, some investors are betting on exactly that. We sure as hell aren’t saying that this bankruptcy won’t take place, but remember it’s not official for 15 more days.”


Well, the company got what it wanted:


PG&E is soaring after a California probe cleared it from causing the state’s second-most destructive wildfire

pcg stock 1.24.19
Market Insider


Now to be clear, this is California clearing them for the 2017 Tubbs fire (note: one of our writers worked for FEMA in 2017 and confirmed that FEMA knew that PG&E was on the hook for the fires) 2018’s Camp Fire “investigation” is still developing.

BlueMountain Capital, the hedge fund that doubled up on their bets in December had this to say:

“The news from Cal Fire that PG&E did not cause the devastating 2017 Tubbs fire is yet another example of why the company shouldn’t be rushing to file for bankruptcy, which would be totally unnecessary and bad for all stakeholders,” said a spokesperson for BlueMountain Capital Management. The fund earlier last week said a bankruptcy filing by PG&E was unnecessary.”


It pays to pay attention to history and the news if you want to do well in the markets…

It also helps when voting for those that allow things like this to happen…

The next step will be to see if they are let off the hook for 2018. A judge’s wildfire safety proposal for the company will cost billions if enforced and the utility company is threatening to raise rates as much as 5x the normal amount. For more news reports, see below.


PG&E claims rates could skyrocket five-fold if ordered to clear trees, inspect electricity system (Mercury)

PG&E wildfire plan could kill 100M trees, cost more than Trump’s border wall (SF Gate)

PG&E Stock Soars 74% as California Fire Agency Clears it in Fatal 2017 Wildfire
(The Street)

BlueMountain Seeks to Replace PG&E’s Board (WSJ)

Private electrical system caused deadly 2017 California wildfire, authorities say
(Fox News)

No other conservative news site articles found