Bank of America: Intervener Testimony Filed in PG&E Pipeline Safety Plan
In a research report published today by Bank of America, interveners filed testimony today on PG&E Corporation's (NYSE: PCG) pipeline safety enhance plan (PSEP) which was proposed as part of the OIR post the San Bruno explosion.
“While testimony was filed by a number of intervenors, we primarily focused on the testimony of DRA (Department of Ratepayer Advocates) and TURN (The Utility Reform Network), two of the largest intervenors. As part of their testimony, both parties suggested different cost allocation methodologies between ratepayers and shareholders. As expected, they proposed pushing more cost onto shareholders. PCG's original proposal was for a $2.2B Phase 1 plan, with shareholders absorbing $535M of costs, of which $221M is directly related to Phase 1,” Bank of America explained in the report.
Bank of America reiterates its Buy rating and $44 PT on PG&E, which closed yesterday at $40.66.
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