Investing Topics: Natural Disasters

When a monthly power bill hits $1,700 plus, people are bound to wonder if there’s a better way to run an electricity market.

Single digit temperatures, record snowfall, millions of utility customers without service, nearly one-third of the state’s power generating capacity shut down and spiking electricity prices: That’s the damage so far from the Great Texas Power Crisis of 2021, which continues wreak havoc across the Lone Star State.

Everyone loves a bargain. But when a stock trades at a big discount to market or sector averages, there’s always a reason. And to move to a higher price, the company must face its challenges.

California’s wildfire insurance law passed last summer essentially requires Governor Gavin Newsom’s approval for any successful restructuring of PG&E Corp (NYSE: PCG). But the giant utility’s proposal is, in his words, “woefully short.”

The biggest regulated utility bankruptcy in history has entered a new phase, as California's PG&E Corp (NYSE: PCG) now has a deadline to meet in order to participate in the state's wildfire "insurance" plan.

It seems California Governor Gavin Newsom will not preside over a utility collapse as former Governor Gray Davis did almost 20 years ago, thanks to a legislative fix to state utilities’ bottomless liability for wildfire damages.