As Pacific Gas & Electric grinds its way through bankruptcy, San Francisco’s Mayor London Breed and City Attorney Dennis Herrera have made an offer on PG&E’s San Francisco distribution and transmission assets.
Breed and Herrera call the proposed purchase an “important step toward energy independence.”
“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,” A statement from the mayor’s office said.
The city filed the offer yesterday before PG&E’s deadline for presenting a restructuring plan to the U.S. Bankruptcy Court.
City Proposal Result of “Months of Hard Work”
In May, the city’s public utilities commission submitted a study to Breed in which they established the rationale and viability of a public takeover of PG&E’s San Francisco distribution and transmission assets.
In that study, San Francisco Public Utilities Commission General Manager Harlan L. Kelly, Jr. told Breed he believes a public purchase would be difficult but the best solution for the city.
“While any sort of acquisition of PG&E property would be a lengthy process, the preliminary report shows that public ownership of San Francisco’s electric grid has the potential for significant long-term benefits relative to investment costs and risks,” Kelly wrote.
In particular, the purchase would help the city reach its goal of 100% carbon-free energy production by 2030, Kelly noted.
“We look forward to positive, collaborative discussions with PG&E on this critical issue. Throughout this process, we will protect the best interests of our City as we strive toward the independent energy future that San Francisco deserves,” Breed and Herrera wrote.
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