San Francisco Offers $2.5 Billion to Buy PG&E Electricity Infrastructure
SAN FRANCISCO — In an effort to create a city-run electric utility in San Francisco, mayor London Breed and city attorney Dennis Herrera issued a statement Sunday outlining an offer to pay $2.5 billion to acquire Pacific Gas and Electric Co. power infrastructure serving the city.
The statement, which the mayor’s office labeled “historic,” reads:
The City and County of San Francisco has taken an important step toward energy independence by submitting an official offer letter to Pacific Gas and Electric Company (PG&E) of $2.5 billion for the acquisition of electric distribution and transmission assets that serve San Francisco. Following PG&E’s bankruptcy protection filing in January, the City began a study to consider the feasibility of purchasing PG&E infrastructure. This marks the culmination of months of hard work from the City and its advisors on that effort...
If a deal were to be achieved San Francisco would operate California’s third-largest city-run electric utility, behind Los Angeles Department of Water and Power and the Sacramento MUD.
State senator Jerry Hill (D-San Mateo), a frequent critic of PG&E, was upbeat in an interview with KCBS radio on Sunday.
“We’ve seen throughout California where cities and municipalities have controlled and owned and operated their utilities that they have a very successful operation and a very safe operation,” Hill said.
“San Francisco certainly has a history of having their own public utilities with the Hetch Hetchy (water supply system) and the operation that they’ve had for many years. So there’s an opportunity here.”