PG&E offered $2.5 billion from San Francisco for select assets
The city of San Francisco is offering to buy parts of troubled PG&E, the nation's biggest utility, in order to continue to provide energy for its residents and businesses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PCG | PG&E CORP. | 21.09 | +0.10 | +0.48% |
The $2.5 billion offer is for pieces of PG&E’s electric assets – and was delivered before the power company was expected to submit plans to reorganize its finances in order to exit bankruptcy.
PG&E filed for bankruptcy in January in a bid to relieve itself of billions of dollars in liabilities stemming from lawsuits over deadly fires in the state that’s its equipment allegedly helped start in both 2017 and 2018.
Late Monday, the company disclosed a reorganization plan that will pay nearly $18 billion for claims tied to those suits. The plan was filed in U.S. Bankruptcy Court in San Francisco.
The offer would not extend to PG&E’s gas system.
Mayor London Breed called the offer “competitive” and “equitable.”
"We look forward to positive, collaborative discussions with PG&E on this critical issue," a statement issued by Breed and City Attorney Dennis Herrera on Sunday said. "Throughout this process we will protect the best interests of our city as we strive toward the independent energy future that San Francisco deserves."
A spokesperson for PG&E said in a statement to FOX Business that it is "open" to communication with the city on the issue.
"We all agree on the importance of continuing to serve the citizens of San Francisco with safe, clean, affordable and reliable energy," the spokesperson said. "PG&E has been a part of San Francisco since the company’s founding more than a century ago, and while we don’t believe municipalization is in the best interests of our customers and stakeholders, we are committed to working with the City and will remain open to communication on this issue."
San Francisco has been mulling a bid to buy assets from the utility since it filed for bankruptcy protection. It is a step toward creating a municipal utility.
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The Associated Press contributed to this report.