"Mr. Yang, this time you promised to let the epay payment platform business and the new blue technology company, the Morgan family and the Rockefeller family really let the House of Representatives withdraw the bill against your company, and the Free Software Fund also published an apology article, they are really optimistic about these two businesses!"

Barry Meyer glanced at Yang Jie and said, "Are you planning to let more subsidiaries under Huaxing Group Company go public in the United States?"

"It depends. Yang Jie said with a smile.

Now the profitability of Huaxing Group Company is still very strong, Yang Jie is not short of money at all, and he is not interested in engaging in the game of investment and annexation in the United States.

Now that the business of Huaxing Group Company has expanded enough, it is what he needs to do now to deeply explore the business at hand, instead of continuing to expand the stall and consuming all the company's energy.

The preparation for the listing of Xinlan Technology Company and Quantum Network Company does not need Yang Jie to promote it personally, Han Xiaolong, Li Chaoyang and others have already brought their teams over to negotiate with Bank of America, Goldman Sachs Group, and Allred Group Company.

Today, Yang Jie got up early in the morning, and today he is going to meet with members of the California State Assembly and officials of the state government to explain to them his acquisition of Southern California Edison Electric Company and Pacific Natural Gas and Electric Company, as well as the business plan after the successful acquisition. The acquisition of these two utilities, which are closely related to the livelihood of Californians, is a hearing-like meeting that is necessary to obtain support from the state and the California legislature for their acquisitions.

Over the course of a few days, Yang Jie has entrusted the negotiations with Goldman Sachs, Citigroup and Bank of America, which will provide a full range of financial and M&A services, and Yang Jie will only be responsible for signing the final contract — provided that the contract can be satisfied, of course.

He is not at all worried about whether the shareholders of the Southern California Edison Electric Company are willing to sell their shares, and now that the Southern California Edison Electric Company is on the verge of bankruptcy, these shareholders will watch the equity in their hands depreciate every day, and when they are about to become worthless, smart people will choose to stop losses in time.

Of course, there are also speculators who hold shares and want to make profits from them, but after all, such people are only a minority.

Yang Jie also clarified the real reasons behind the California power crisis from the mouths of his quasi-father-in-law and Barry Meyer.

In 1994, the California Public Servants issued a Blue Paper recommending that the California power system begin to reorganize, and by 1996, California passed AB 1890.

According to the bill, the state government requested the original three regional monopoly utilities - Pacific Gas and Electric Company, Southern California Edison Electric Company, and San Diego Gas and Electric Company to go public and publicly auction at least 50% of the shares of its power plants to convert them into three distribution and sales companies, and newly organize the California Independent System Operating Agency and the Electric Exchange, plus investor-owned power generation companies), independent power generation companies, captive cogeneration power generation companies for large users, and Zhujin's power brokers, etc., have formed more than 40 independent power producers.

In fact, this reform plan is very similar to Huaxia's subsequent policy of "separation of power and electricity".

The program began to operate in the California market in March 998.

From the perspective of this reform plan, the starting point of the California state is very good, they want to break the monopoly of the original three companies, let more investors enter the power system, and change the situation that the electricity price of the California power system is too high and cannot keep up with the pace of California's economic development.

In the first two years of the year, the wholesale electricity price has indeed fallen, and the profits of the three major distribution and sales companies have increased. At that time, the average sales price of electricity was 5-7 cents/kWh, which is relatively high in the United States, while the average purchase cost of wholesale feed-in electricity price was only 2-4 cents/kWh.

However, this year, the average wholesale feed-in tariff soared to 25-75 cents/kWh in June, and the wholesale feed-in tariff reached 250-1000 cents/kWh during individual peak hours, which is more than 100 times the normal electricity price.

Because its retail electricity price is frozen by the state government and is not linked to the wholesale feed-in tariff, the three major placement companies have suffered serious losses and are on the verge of bankruptcy. At this time, banks refused to provide credit guarantees, and the three major distribution and sales companies were unable to purchase electricity from the spot market to supply customers, thus triggering the power crisis.

In the summer, California's electricity consumption peaked, and the three major distribution and sales companies could not afford electricity, so the state had to issue a second-level state of emergency to cut off power supply users.

In the past few months, the three major placement companies have lost a total of $7 billion in half a year, and are almost on the verge of bankruptcy. The federal and state governments had to intervene to rescue the state by setting a price cap on wholesale feed-in, asking generators to sign long-term contracts with major users or distribution companies, and allocating power generation from other states to provide emergency support to California, while also delaying the debt of the three major distribution and distribution companies.

But the California power generators are making windfall profits, which have increased fivefold in the past few months, and they have also used some of the polluting backup power sources that have risen sharply in demand for electricity.

Most of California's electricity is heavily dependent on natural gas power plants, and global oil prices have risen rapidly this year, and the price of natural gas in California has increased by 12-30 times, causing California power generation companies to generate electricity sharply.

In addition to the fact that California has not built a large power plant in the past 10 years and has not expanded the transmission line, the capacity of the northern and western sides of the power supply has been limited, resulting in a shortage of power supply.

The real reason for the sky-high price of electricity in California is that Enron Energy Group is behind the scenes, and these power generators are deliberately raising the wholesale feed-in tariff so high, making huge profits in the middle.

California's total installed capacity at the time was 45 million kilowatts, and the load demand during the rolling blackouts was only 28 million kilowatts, and Enron shut down the power plant under the pretext of unit maintenance during peak demand, which was able to increase the quoted price, sometimes as much as 20 times the normal quoted price.

Enron also illegally closed the natural gas pipeline to California this year, which caused the price of natural gas to rise 20 times in a short period of time, and also caused California to experience a serious power supply shortage.

This power crisis allowed Yang Jie to see a great opportunity to enter the power and natural gas energy fields of California.

The state capital of California is located in Sacramento, a western city that developed as a result of the gold rush, known as the 'Second Port' among the older generation of Chinese diaspora.

Yang Jie is not very familiar with this city, and he has been here once before.

"Boss, we're here!"

Andy Masch, president and chief operating officer of Prager Energy, told Yang Jie that the acquisition was made in the name of Prager Energy.

Yang Jie nodded, and after briefly looking through the car window at the pretty building with a white dome outside, which was similar to the White House in the heart of the United States, he pushed the door and walked down.

"Zheng Chao, you take two people with me to go in, and the others stay outside. ”

There are too many bodyguards to come here, and it is enough to have Zheng Chao and two subordinates, and cooperate with the security staff of the state capital itself.

The crowd walked to the door, went through the security check and walked into the hall. Soon, the staff of the state government arranged in advance quickly greeted him.

"Are you Mr. Yang?"

"I am!" Yang Jie nodded after looking at the young man in a suit in front of him.

"Hello, I'm Charled Watson, a staff member in the State Office. ！”

Yang Jie stretched out his right hand and shook hands with the other party.

"Mr. Yang, please come with me, Governor Davis and everyone are waiting for you in the conference room!"

The group followed Chuck Watson and turned left, passed through a long corridor covered with murals, and entered a large room with a quaint smell.

After seeing them come in, everyone who was chatting stopped and looked towards the door with the same eyes.

Both Yang Jie and Andy Masch rarely accept interviews from the outside world, and these state officials and legislators have a strong interest in this somewhat mysterious young rich man from China.

"Mr. Yang!"

Looking at the waving California Governor Michael Davis, Yang Jie had a smile on his face, and he and the governor had met at Hills Castle the day before yesterday.

Reborn University Tyrant Latest Chapter 435 California Electricity Crisis!