California’s Pacific Gas & Electric could receive $15B in federal loans to modernize its power grid

SACRAMENTO, Calif. — Pacific Gas & Electric Co. could receive up to $15 billion in federal loans to assist the utility modernize its power grid and expand tidy vigor infrastructure across central and northern California, officials announced Tuesday.

The U.S. Department of vigor announced a conditional commitment for one of the largest borrowing guarantees ever under its vigor Infrastructure Reinvestment program. When finalized, the money would be loaned in installments over several years.

The funds would back a holdings of projects to expand hydropower production and battery storage, upgrade transmission capacity, and enable virtual power plants throughout PG&E’s service area, the vigor department said.

PG&E submitted its application to the agency’s borrowing Programs Office in June 2023. Partially financing its projects with lower-expense federal loans could save customers up to $1 billion over the life of the capitalization, the utility said in a statement Tuesday.

“Investments in a tidy and resilient grid for northern and central California will have significant returns for our customers in safety, reliability and financial expansion. The DOE borrowing program can assist us accelerate the pace and impact of this work, which supports thousands of living wage jobs, at a lower expense to our customers,” PG&E CEO Patti Poppe said in the statement.

The Sierra Club, the environmental advocacy throng, cheered PG&E’s commitment to modernizing the power grid and expanding tidy vigor infrastructure.

“This innovative borrowing program will assist ensure that Californians will view more stable rates, enjoy more excellent tidy vigor jobs and live with fewer harmful emissions. This unprecedented windfall also offers a distinctive chance for PG&E to update its outdated transmission infrastructure with more efficient, climate-amiable and fire-secure technology,” Sierra Club organizer Julia Dowell said in a statement Tuesday.

The borrowing office hopes to finalize the commitment before President Joe Biden leaves office next month.