PG&E’s California customers can expect rotating power outages in response to ‘above-normal’ temperatures

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PG&E Corp. said its California customers can expect to suffer power outages Tuesday that could last about two hours, as a result of the Flex Alert announced by the California Independent System Operator (CAISO), which manages the state’s power grid. The San Francisco-based utility said rotating outages are necessary under the Flex Alert, which is in response to forecasts of “extended, above-normal temperatures” across the state, that is expected to put a strain on the states grid. “During these emergencies, the CAISO will typically order the state’s utilities, including PG&E, to reduce electric load by turning off service immediately to prevent larger outages on the grid,” PG&E said in a statement. “These outages are not Public Safety Power Shutoffs, which are called during specific high fire-threat conditions, and they are not related to any issues with PG&E’s equipment or its ability to deliver energy locally.” The stock, which rose 2.0% in afternoon trading, has dropped 14.0% year to date, while the SPDR Utilities Select Sector ETF has slipped 6.9% and the S&P 500 has gained 5.0%.
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