Chapter 221： Pan Pacific Energy Group

Chapter 221 Pan Pacific Energy Group

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Jonas Weir, CEO of Southern California Edison Power Company, is known for being strict and tough. Under his leadership, Southern California Edison suffered lower losses than Pacific Electric and Natural Gas in the California energy crisis. It's a pity that the environment is bad to the extreme, and no matter how clever his business methods are, he will not be able to recover.

"Yes, no!" After a pause, "the reason for saying 'Yes' is mainly because the original intention of this website is indeed to do energy transactions similar to Enron, Dalizhi, and El Paso. After all, this time The lessons of California's energy crisis are strong enough that we cannot continue to be as indifferent to the construction of energy channels as we have been before."

After everyone digested it, Guo Shouyun continued: "The reason why we say 'no' is mainly because our 'Pan Pacific Energy Trading Website' is not the same as Enron, Dalizhi and El Paso. These rose in the 1990s. The energy traders of the 1990s, with their own brand and channel advantages, forced electricity and gas producers and utilities to deal with them, and then they could set the price of buying and selling electricity and gas by their own will, With this, they have made huge profits in energy trading. The California energy crisis is a 'hunting operation' caused by the excessive greed of this trading system."

“…We want to get rid of the second, third, and even more similar energy crises in the future. We can no longer rely on inefficient governments, but by changing the way third-party energy trades are made, we can completely control the power of energy trade. After all, after the merger of our two companies, it is the largest public utility service provider in California. There are 40 million people in California, hundreds of thousands of enterprises, and two-thirds of them are our customers. We have huge demand and channels, and have 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 am, we publish a natural gas and electricity price based on the previous day’s gas and electricity prices. The price index of electricity allows natural gas and electricity producers and service providers to trade around this index. Our platform charges 0.5~1% service fee for each transaction, depending on the size.”

Guo Shouyun's words fell behind, and the discussion in the conference room quickly rose. If his proposal does come to fruition, then there is no doubt that Enron's dominance of energy trading in the United States will be shaken. Not to mention replacing Enron, at least to a certain extent, it can solve the California energy crisis that still shows no signs of ending.

With the arguing, another hand was soon raised. 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 energy trading landscape. If it can be successful, it can indeed enhance the company's position in the energy market. The challenge of energy trading companies such as Paso. I am afraid that the operating environment of new companies will be more difficult!”

"Isn't our operating environment not difficult now? Or, Dalizhi, Enron, and El Paso will give up the opportunity to make a lot of money, treat Pan Pacific as a friend, and actively reduce the price of electricity supply?"

Guo Shouyun's slightly sarcastic words made the other party become silent. After the California energy crisis, it is impossible for Pan Pacific to follow the three companies as friendly partners, no matter now or in the future. They are shameless thieves in the eyes of company executives, all employees, and even the entire California energy system, who have stolen over $600 million in huge profits from California taxpayers.

"I know it's really difficult for Transpacific to succeed. After all, we're not Enron, and we don't have a 37,500-mile natural gas pipeline across the country. It's not Dulles and El Paso, who have been through more than a dozen years of We have worked hard to build a strong energy trading platform. But I believe that many public utility companies like us, as well as energy producers, must also be fed up with the exploitation and squeeze of energy traders such as Enron. As long as we work hard, a A new and fair trading platform will be built in our hands."

Everyone looked at each other, and the new boss paid more attention to the energy market than they expected. You know, many of them are waiting to see the joke of the new boss, who just turned 20 years old, left the stage sadly after his face was broken in the California energy crisis. But through the contact just now, although the other party is young, buying Pacific Ocean and Southern California is not purely investment or interest, but really wants to make a difference in the energy market. Especially the strategy just now is obviously the result of careful consideration.

Guo Shouyun can roughly guess their thoughts from the faces of these people, but now is not the time to deal with them.

“Now take a look at the balance sheet of Pan Pacific Energy. … The two companies have a combined total debt of $28.747 billion. Among them, current liabilities are $19.217 billion and illiquid liabilities are $9.53 billion. Two transactions, totaling US$1.42 billion. In addition, from January to April this year, the average monthly cumulative loss was US$478 million. In addition, our existing total assets are US$718.34. Liquid assets...!" Guo Shouyun shook his head, not thinking come out.

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

"...Illiquid assets of US$71.834 billion." After a pause, "Everyone, it seems that the difficulties we are facing are very difficult. ... Now, can anyone give me a constructive solution to solve the current difficulties?" Guo Shouyun Look around the crowd.

Everyone looked at each other, and most of them thought it was nonsense. Because now the most fundamental problem of Pan Pacific is lack of money, as long as there is money, everything can be solved. However, they could also guess the reason for Guo Shouyun's question, so many people present wanted to show it in front of the future boss.

Looking at the raised arm, Guo Shouyun randomly ordered one.

“I think the California energy crisis is the main cause of the company’s predicament. We should actively cooperate with the California government and hire some public companies with strong energy in Washington to lobby the Department of Energy to limit electricity prices in surrounding states. As long as the electricity price is solved, then with the company’s Revenues can gradually turn losses into profits.”

"Good, any more?"

"Gone!"

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

"…Who else has a different opinion?"

A bald man in a brown suit raised his arms.

"Mr. Segner, please speak!"

Rocco Segner, CFO of Pacific Power and Gas, knew from the data that Guo Shouyun was a slick and treacherous old guy.

"Boss, I think we should use the Transpacific Energy Exchange program to talk to the people at Dalitz and El Paso, and if they're willing to lower their electricity rates and gas prices, then we can work with them."

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

"They will certainly want to, or our new website will threaten their position in the energy trade market with a more convenient and fair way of dealing. They won't see a powerful new enemy emerge."

"Any more?"

"Gone!"

"Please sit down!"

Seeing Guo Shouyun's consistent expression, Rocco Segner was a little disappointed. The new boss's city seems to be deeper than he expected.

"Who else has a different opinion?"

After asking, Guo Shouyun looked around, no one raised his hand, his eyes fell on the first middle-aged man on the left who remained silent all the time.

"Mr. Vail, do you have a different opinion?"

Jonathan Weir raised his head and looked at the new boss who had a young face, but his eyes were deep, and his temperament revealed a steady stream of years. After pondering for a while, after organizing the language, "I want to improve the company's operating dilemma I think there are two main aspects: open source and throttling."

"How to open source? How to save money?" Guo Shouyun said with great interest.

"Open source is investment, to buy back or rebuild power plants that were originally sold by Pacific and Southern California after the opening of electricity trading in California. And, at least on the basis of existing 1.o37 million megawatts of power capacity. , an increase of at least 20,000 megawatts. This figure can meet the basic electricity needs of California in winter, and the electricity for peak summer electricity consumption can be purchased from the northern Canadian power company through the energy trading website, which not only improves the security of the company's energy supply, but also reduces the It's going to be a waste."

"Did you know that this one plan of yours will give us an extra $200 million in investment?" Guo Shouyun said after a little thought.

"Of course. But we can extend this plan to 6-9 years to execute. Also, the investment is not as high as you think. As long as 800-100 million US dollars, we can leverage the entire project, as for the rest The funds can be obtained from bank loans or bonds. The revenue from the power plant can then be used to repay the debt.”

"Any more?"

Jonathan Weir nodded.

"In terms of cost reduction, there are mainly three aspects. First, simplify the management level of the company, change the 'headquarters-regional branch-county branch' into a two-level system, and remove the middle layer. All county-level branches are directly governed by the headquarters. Also, adopt a variable compensation system to eliminate the unqualified 10% of the company's employees every year to ensure the vitality of the company. . . If these can be implemented, it will cut 12.3% of the company's staff and reduce administrative expenses by $184 million per year."

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