PG&E is in a favorable position to take advantage of carbon caps and the other green initiatives that Governor Arnold Schwarzenegger has made a cornerstone of his administration. Currently, 16% of PG&E’s electricity supply currently comes from renewable sources, and up to 50% comes from zero-emissions sources.
The structure of PG&E’s bankruptcy deal provides a productive financial and governance framework for the company. In addition, the bankruptcy settlement protects PG&E from regulatory changes until it’s credit ratings improve.
PG&E benefits from California’s favorable regulatory environment. The state worked hard to recover from the 2000-2001 energy crisis and is now protective of utilities to prevent a relapse. Thus far, regulators have supported PG&E’s investments in infrastructure and new technology.