The California utility announced it would sell the stake in its hydroelectric, natural gas, solar and battery storage facilities as part of a plan to spin off its non-nuclear generation unit. — Bloomberg
NEW YORK: PG&E Corp is in talks to sell a minority stake in its power generation business to investment firm KKR & Co, a transaction regulators have signalled they don’t intend to support.
The California utility announced it would sell the stake in its hydroelectric, natural gas, solar and battery storage facilities as part of a plan to spin off its non-nuclear generation unit. The company didn’t give an estimated sales price, but said the transaction would reduce customer rates by US$100mil over the next 20 years.
The announcement comes as PG&E plans to invest an estimated US$62bil from 2024 through 2028 to support its wildfire prevention work and grid upgrades.
The company has come under mounting scrutiny for raising customer bills to finance its work, which includes efforts to reduce the risk of its lines sparking another catastrophic wildfire.
PG&E was driven into bankruptcy in 2019 after its broken equipment set off a number of fires, including the deadliest in state. The California Public Utilities Commission scheduled a vote for May 9 to reject the spinoff, saying in its proposed decision PG&E hadn’t demonstrated how the sale would benefit customers compared to other financing methods. — Bloomberg
