The Biden administration on Tuesday gave Pacific Gas & Electric a record-high amount of funding to help repair power lines blamed for wildfires and other improvements to cope with surging energy use. announced that it would provide $15 billion in loan guarantees.
The commitment still needs to be finalized, but will help PG&E expand its hydropower and battery storage capacity, the utility said in a release. The funding will also help PG&E expand its transmission system and connect to new clean energy facilities.
“Investing in a clean and resilient power grid in Northern and Central California will deliver significant benefits to our customers in terms of safety, reliability and economic growth,” said Patti Poppe, CEO of the company. Probably.”
The company said the loans will be offered at lower interest rates than otherwise available and could save customers up to $1 billion over many years.
“As we work to modernize our power grid and stabilize customer billing, we will pass on savings from lower debt costs to our customers,” PG&E spokeswoman Lindsey Paulo said.
A new report from the state Public Utilities Commission’s Office of Public Law Advocacy shows that the utility’s electricity rates have risen 56% over the past three years, more than Southern California Edison and San Diego Gas & Gas & Co. It is said to be superior to either electric.
PG&E has raised rates four times this year. The company’s rate request must be approved by the Public Utilities Commission, which is appointed by Gov. Gavin Newsom and approved by the Democratic-controlled state Senate.
Last year, the company posted a profit of $2.2 billion. This was an increase of almost 25% year over year.
Paulo said the company is currently working to keep average annual increases in residential gas and electricity rates within 2% to 4% until 2026.
Tuesday’s federal loan announcement drew skepticism.
“This loan is more of a bailout for PG&E than it is a solution to California’s energy future,” said Ken Cook, president of the nonprofit advocacy group Environmental Working Group. “Someone has to pay back, and it’s definitely not the company’s shareholders or management.”
The Biden administration is rushing to release additional funding from the Inflation Control Act of 2022 before President-elect Donald Trump takes office in January.
This loan guarantee is the largest effort to date by the Department of Energy’s Office of Loan Programs. The funding will be provided to PG&E in installments over several years. Loan Office staff must approve projects for Loan Office disbursement.
Federal officials said the company still must meet certain technical, legal, environmental and financial conditions before the loan can be disbursed.
In 2019, Pacific Gas & Electric was awarded a $13.5 billion settlement for wildfires in Northern California caused by its equipment that killed dozens of people and destroyed thousands of homes and businesses. announced the money. Those fires include the blaze that nearly destroyed the town of Paradise in 2018, making it the deadliest in state history.
The company had filed for bankruptcy earlier that year. It was reorganized and emerged from bankruptcy in July 2020.
