Chapter 221 Pan Pacific Energy Group

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Jonas Weir, CEO of Southern California Edison Power, is known for his rigor and toughness. Under his leadership, Southern California Edison Power suffered less losses in the California energy crisis than Pacific Electric and Natural Gas. It's a pity that the general environment is extremely bad, and no matter how clever his business methods are, he can't go back.

"Yes and no!" After a pause, "the main reason why I say 'yes' is because the original intention of this website is indeed to do similar energy transactions between Enron, Duliks, and El Paso." After all, the lessons of California's energy crisis are heavy enough that we cannot continue to remain as indifferent to the construction of energy channels as we have done before. ”

After everyone digested it, Guo Shouyun continued: "The reason why I say 'no'. Mainly because our 'Pan Pacific Energy Exchange' is not the same as Enron, Dulij, and El Paso. These energy traders, who emerged in the 90s, forced electricity and gas producers and utilities to trade with them with their brands and channels, and then they could set the prices they bought and sold at their own will, making huge profits in energy trading. California's energy crisis is the 'hunt' launched by the excessive greed of this trading system. ”

“… We want to get out of a second, third, and even more similar energy crises in the future. Instead of relying on inefficient governments, we can completely control the voice of energy trade by changing the way third-party energy trades. After all, when our two companies combined, we would be the largest utility provider in California. California has a population of 40 million and hundreds of thousands of businesses, two-thirds of which are our customers. We have huge demand and access to it, and we have the capital to rebuild an energy trading platform. ”

“… The main role of this platform is to allow gas and electricity producers, as well as gas and electricity service providers, to trade fairly on this platform. Every day at 9 a.m., we publish a price index for gas and electricity based on the previous day's gas and electricity prices, and for gas and electricity producers and service providers to trade around this index. Our platform will charge a service fee of 0.5~1% for each transaction, depending on the size. ”

After Guo Shouyun finished speaking, the discussion in the conference room quickly rose. If his proposal does come to fruition, there is no doubt that Enron's supremacy in U.S. energy trading will be shaken. Not to mention replacing Enron, at least it can solve the energy crisis in California, which still shows no end to some extent.

As the argument arose, someone soon raised their hand. After Guo Shouyun nodded, the other party said quickly.

"Mr. Guo, the way the Pan Pacific Energy Trading website works has fundamentally changed the current landscape of energy trading. If successful, it will indeed enhance the company's position in the energy market. But this is undoubtedly a challenge for energy trading companies such as Enron, Dulijis and El Paso. I'm afraid that the operating environment of the new company will be more difficult in the future!"

"Isn't it difficult for us to operate in a difficult environment right now? Or will Duliks, Enron, and El Paso give up the opportunity to make a lot of money, treat Pan Pacific as a friend, and take the initiative to lower the price of electricity supply?"

Guo Shouyun's slightly sarcastic words made the other party silent. In the wake of California's energy crisis, it is unlikely that Pan Pacific will be a good partner with the three companies, now or in the future. In the eyes of the company's top brass and all employees, and even the entire California energy system, they are shameless thieves who have stolen more than $60 billion in huge profits from California taxpayers.

"I know it's really difficult for the Pan Pacific Energy Trading website to be successful. After all, we are not Enron, we do not have a 37,500-mile gas pipeline that runs across the country. It's not Dulis and El Paso, who have built a powerful energy trading platform through more than ten years of hard work. But I believe that many utilities like us, as well as energy producers, must have had enough of the exploitation and oppression of energy traders such as Enron, and as long as we work hard, a new and fair trading platform will be built in our hands. ”

Everyone looked at each other, and the new boss's emphasis on the energy market was somewhat unexpected. You know, many of them are waiting to see the joke that the new boss, who has just turned 20, will leave the scene after his head is bleeding in the midst of California's energy crisis. However, through the contact just now, although the other party is young, the purchase of Pacific and Southern California is not a simple investment or interest, but a real desire to make a difference in the energy market. In particular, the strategy just now is clearly the result of careful consideration.

Guo Shouyun could roughly guess what these people were thinking from their faces, but now was not the time to deal with them.

"Now let's look at Pan Pacific Energy's balance sheet. … The total debt of the two companies is $28.747 billion. Among them, current liabilities were US$19.217 billion and ilcurrent liabilities were US$9.53 billion. Of these, there are two debts due soon, totalling $1.42 billion. In addition, from January to April this year, the average monthly cumulative loss was $478 million. In addition, we have total assets of $718.34. Liquid assets...!" Guo Shouyun shook his head and didn't read it out.

In fact, the liquidity of both companies, except for the monthly gas and electricity bills paid by customers, has basically dried up. Otherwise, Guo Shouyun would not have completed the acquisition so easily.

“… Illiquid assets were $71.834 billion. After a pause, "Ladies and gentlemen, it seems that the difficulties we face are daunting. … Now, can anyone give me a constructive plan to solve the current difficulties?" Guo Shouyun looked around at the crowd.

Everyone looked at each other, and the vast majority of them thought it was nonsense. Because the fundamental problem of Pan Pacific now is the lack of money, as long as the money is available, everything can be solved. However, they can also guess the reason why Guo Shouyun asked, so many people present want to behave in front of the future big boss.

Looking at the raised arm, Guo Shouyun clicked one at random.

"I think the main cause of the company's woes is the energy crisis in California, and we should actively cooperate with the California government and hire some public companies with strong power in Washington to lobby the Department of Energy to limit the price of electricity in the surrounding states. As long as the electricity price is solved, then with the company's revenue, it can gradually turn losses into profits. ”

"Yes, anything else?"

"It's gone!"

"Please sit down!" Guo Shouyun nodded, and there was no joy or anger on his face.

“… Who else has a different opinion?"

A balding man in a brown suit raised his arms.

"Mr. Segna, please!"

Rocco Segna, CFO of Pacific Power and Gas, knows from the information that Guo Shouyun is a sleek and treacherous old guy.

"BOSS, I think we should use the Pan Pacific Energy Trading site as a solution to talk to Dulijis and El Paso, and if they're willing to lower wholesale electricity prices and gas prices, then we can work with them. ”

"What if they don't want to?" Guo Shouyun said indifferently.

"They will certainly be willing, otherwise our new website will threaten their position in the energy trading market with a more convenient and fair way of trading. They won't see a new enemy of great strength appear. ”

"Anything else?"

"It's gone!"

"Please be seated!"

Looking at Guo Shouyun's consistent expression, Rocco Segna was a little disappointed. The new boss's city seemed to be deeper than he expected.

"Who else has a different opinion?"

After asking, Guo Shouyun looked around and found that no one was raising his hand, and his eyes fell on the first middle-aged man on the left hand side who had always remained silent.

"Mr. Weir, do you have any different opinions?"

Jonathan Weil raised his head and looked at the new boss who had a young face, deep eyes, and a steady new boss in his temperament. After pondering for a moment and organizing the language, "If you want to improve the company's business dilemma, I think there are two main aspects: open source and cost reduction. ”

"How to open up the source, how to reduce expenditure?" Guo Shouyun said with interest.

"Open source is an investment, buying back or rebuilding power plants that were sold by Pacific and Southern California after California opened up for power trading. Moreover, at least 20,000 megawatts will be added to the existing 10,370 megawatts of generating capacity. This is enough to meet California's basic electricity needs in the winter, and electricity from Northern Canada's electric utilities during peak summer demand can be purchased through energy trading sites, which increases the company's energy supply security without causing waste. ”

"Do you know that your plan has given us an additional $20 billion in investment?" Guo Shouyun said after a moment's thought.

"Of course. However, we can extend this plan to 6~9 years to implement. Moreover, the investment is not as high as you think. As long as 80~10 billion US dollars, we can leverage the entire project, and the rest of the funds can seek bank loans, or issue bonds. The plant's revenues are then used to pay off debts. ”

"Anything else?"

Jonathan Weil nodded.

"In terms of throttling, there are three main aspects. First, simplify the company's management level, change the 'headquarters-regional branch-county branch', into a two-level system, and remove the middle layer. All county-level branches are directly under the jurisdiction of the headquarters. In addition, the variable salary system is adopted, and 10% of the company's employees who are not qualified are eliminated every year to ensure the vitality of the company. … If these can be implemented, it will reduce the company's personnel by 12.3% and reduce administrative expenses by $184 million per year. ”

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