My main point is if as has been shown in photos this work has been done the utility (LDC) has done their own DD to ensure the contract that they entered into with a large customer like LQMT will pay the required income to support the utility's expected ROE. Otherwise the regulator could deny those costs in the LDC's rates and hit the LDC's shareholder. So in my mind we now have some form of good vetting by the LDC of LQMT's bonifides.
Iksnay, So. Cal. Edison does not vet/research/investigate anything.
If you want an upgrade you pay all the costs for that upgrade; that includes any additional costs by So Cal Edison to bring you the additional electricity if they don't have it at the local transformer.
LQMT's monthly bill will reflect the whatever service charge for having a 4000 amp service and the applicable fee for each kilowatt used that month.
So. Cal. Edison does not care in the least from here on out if LQMT maximizes use of their new service or does not use it at all--just pay the bill on time.
LQMT has concrete and landscaping work they need to get done.
I’m curious with the reasoning here: how is it that you think the utility company bears any cost here? The client (LQMT) bore all the cost of doing the work to upgrade...??? I’m confused as to what you are concerned about. Please advise if I misunderstood what you were positing.
"So in my mind we now have some form of good vetting" True, sort of. What are the parameters for approval based upon due diligence? There is after all more or less $25 million. In cash on hand. And low/no debt. Far as I know they own the building as well. It is good information but using this as due diligence for shareholders is pretty weak. We are talking about electrical service, not the success of sustaining P&L of our company. I wonder what the rate of failure is for this DD. WOuld like to see their analysis. I am imagining they cannot refuse service to a $25 million cash in hand and little/no debt without getting into big trouble.
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