San Francisco Seeks to Acquire PG&E Grid Amid $13.9B Valuation Dispute

Source: KUCOIN‍ ‍

San Francisco wants to acquire Pacific Gas & Electric's electricity grid within the city and supply residents directly. PG&E provided the utility's first valuation on Tuesday, seven years after San Francisco initially offered to buy the grid. PG&E valued the assets at $13.9 billion, roughly quadruple the city's $3.4 billion estimate from April. PG&E says San Francisco should pay an additional $8.6 billion for separating the grid and preventing rate increases for customers outside the city. Those estimates would put the total expense of establishing public power above San Francisco's entire annual budget.

The Utility Reform Network Executive Director Mark Toney expressed concern that remaining PG&E customers would absorb more grid maintenance costs, particularly wildfire expenses. PG&E distributes wildfire costs, including underground power lines, across the utility's entire customer base regardless of where the work occurs. 

 
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