PCG: PG&E Corporation Message Board

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Gold/Mining/Energy : PCG: PG&E Corporation

PCG 15.96

+0.4%

Oct 31 9:30 AM EST

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From: Bnad	1/16/2001 3:40:36 PM
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Seems everyone is trying to figure out who's getting rich from the CA energy crisis. One possibility might be the folks who bought seven California-based power plants from PG&E in 1998 and 1999 for $1.515 billion. Given how scarce it seems power plants are these days, PG&E probably should have / could have got a better price. (Or the regulators should have foreseen what would happen once the power plant divestment forced on PG&E deregulated wholesale prices a full two years before retail prices!) I'm not sure who bought the plants or whether the sale price was regulated, but PG&E's fix is like that of a jeweler with a golden egg-laying goose, who is forced by the king to sell the goose. He sells the goose to a hunchback for $350, and then the (unregulated) hunchback jacks the price of golden eggs up to $100, while the jeweler is forced by the king to sell gold jewelry at $1 a pound for the next two years. The hunchback wins big; everyone runs to buy gold jewelry from the jeweler and he is ruined (or bailed out by the king). Now who is the hunchback? Brad

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