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PG&E puts $20 billion price tag on San Francisco public-power bid
PG&E says buying its San Francisco electric grid would cost $20 billion, sharply higher than the city’s $3.4 billion estimate. The utility must submit its new valuation to state regulators by Oct. 20.
San Francisco would have to pay $20 billion to buy Pacific Gas & Electric’s electric grid, the utility said Wednesday, setting up a sharp dispute over the cost of a potential public takeover.
PG&E CEO Patti Poppe gave the estimate at a public event and argued that taking over the system would not be in the city’s best interest. The company said its total includes electric-system assets, property and severance costs.
The figure is nearly six times the $3.4 billion estimate San Francisco submitted in April. The competing valuations are part of a proceeding before the California Public Utilities Commission that began during former Mayor London Breed’s administration. PG&E is required to provide its updated estimate to state regulators by Oct. 20.
PG&E says the city’s offer is below market value and does not account for severance costs or roughly 2,000 company real-estate interests, including easements and licenses. The utility argues those rights could be costly to acquire in a densely developed city.
The gap between the two estimates leaves regulators and city officials facing a major disagreement over what public ownership would require financially. The figures disclosed so far are estimates from the parties, not a final price set by the commission.