San Francisco considers making multibillion-dollar bid for PG&E assets

US, San Francisco: San Francisco may make a multibillion-dollar bid within months for some assets owned by California power giant PG&E Corporation.

The report takes San Francisco one step closer to an offer that city officials have been talking about since PG&E filed for bankruptcy in January under the weight of an estimated $30 billion in liabilities from wildfires.

“This preliminary report demonstrates that public ownership of San Francisco’s electric grid has the potential for significant long‐term benefits,” the San Francisco Public Utilities Commission (PUC) said, noting that an acquisition would also “eliminate the roadblocks, delays, and costs” that the city faces in working with PG&E.

The utilities commission would sell revenue bonds to buy the assets, pointing in the report to past successful offerings backed by its water systems. While the necessary capital “would be significant,” the report said it’s comparable to the city’s $4.8 B overhaul of its water system.

Overall, the report estimates that about $360 M flows annually from San Francisco to PG&E for power delivery services and other public purpose programs.

Source: T&D World