San Francisco is willing to pay $2.5 billion to buy Pacific Gas and Electric Co. power lines and other related infrastructure serving the city.
Mayor London Breed and City Attorney Dennis Herrera included that price in a Friday letter to PG&E, reviewed by The Chronicle, which outlines the city’s offer for the embattled utility’s electric assets. San Francisco officials have been closely considering such a purchase since PG&E decided to file for bankruptcy protection in January, and the offer letter is their most significant step to date.
If the transaction goes through, it would be a turning point for PG&E, which would lose hundreds of thousands of electric customers in its hometown, where the company’s roots stretch back more than 150 years. The deal would also form California’s third-largest government-owned electric utility, after the Los Angeles Department of Water and Power and the Sacramento Municipal Utility District.
San Francisco makes $2.5 billion offer for PG&E electric system, by J.D. Morris, The San Francisco Chronicle, September 8, 2019.