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PG&E announces $15 billion loan for upgrades to energy infrastructure
The utility still has to meet environmental and financial requirements before the loan is approved by the DOE.
SAN JOSE, CA - PG&E announced on Tuesday that it’s received a conditional commitment from the U.S. Dept. of Energy for a $15 billion loan to upgrade its energy infrastructure.
The utility said the low-cost loan will be used to modernize its power grid and ultimately could save customers a lot of money.
"Last year we had a black-out that lasted eight hours, so we kind of had to figure it out and survive that way. So, I really hope that it makes it better," said Claudia Serrato of San Jose.
Some customers say though they’re glad to hear about plans to modernize PG&E systems, they’re still worried about current rising costs.
"When I looked at my bill this month, it was $30 or $40 more than I paid last year. That’s despite the same amount of usage or even reduced usage since I stopped using my heater at night, just because these darn electric bills are so expensive," said Kyle Martinez, of San Jose.
"You know, I was averaging half of what I’m paying now two years ago. So, it’s upsetting to see," Serrato said.
PG&E said the loan would fund projects that include expanding clean power generation, enhancing transmission systems and using virtual power plants to enhance the grid. The utility company also said in part: "Partially funding these projects with the lower-cost federal financing could save customers up to $1 billion net present value over the life of the financing, while paying for critical investments in safety and reliability to serve customers."
The Sierra Club, an environmental advocacy group, said PG&E may be moving in the right direction.
"From the Sierra Club’s perspective, the types of things being discussed in PG&E’s application appear to be pretty in line with the way that we think utilities ought to be moving. But again, the devil’s in the details," said Jeremy Fisher, Sierra Club's climate and energy principal advisor.
Fisher said the funds are covered under the Inflation Reduction Act.
PG&E still has to meet environmental and financial requirements before the loan is approved by the DOE.