Business & Tech
$2.5B Offer For PG&E Equipment In SF
San Francisco made the offer in a bid to have a publicly owned utility. The cities of Alameda and Palo Alto own their own utilities.
SAN FRANCISCO, CA ā The city of San Francisco is seeking to purchase PG&E electricity assets for $2.5 billion, in an attempt to become independent from the utility giant, Mayor London Breed announced Sunday.
The offer made to PG&E would allow for the city to take ownership of the utility's electric distribution and transmission assets that serve residents.
Breed said the offer comes after a feasibility study on the potential purchase.
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"This marks the culmination of months of hard work from the City and its advisors on that effort," Breed said in a statement.
"Our offer to PG&E is the result of detailed financial analysis conducted by industry experts and encompassing an extensive examination into the company's assets in San Francisco. The offer we are putting forth is competitive, fair and equitable.
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"It will offer financial stability for PG&E, while helping the City expand upon our efforts to provide reliable, safe, clean and affordable electricity to the residents and businesses of San Francisco," she said.
"We look forward to positive, collaborative discussions with PG&E on this critical issue. Throughout this process we will protect the best interests of our City as we strive toward the independent energy future that San Francisco deserves."
Breed said the feasibility study to purchase PG&E infrastructure came after PG&E filed for Chapter 11 bankruptcy protection as a result of its liabilities and potential liabilities from Northern California wildfires in 2017 and 2018. PG&E on Monday filed a plan for reorganization.
Breed's offer has the support of San Francisco Public Utilities Commission president Ann Moller Caen and general manager Harlan Kelly Jr.
Kelly said the city's proposal would provide electricity to residents at a lower rate than PG&E charges "without relying on the City's general fund."
Caen said the timing is right and the purchase would "accelerate our City's ambitious climate action goals."
ā Bay City News
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