Biden Administration Approves $15 Billion Loan to California's PG&E for Grid Upgrades Serving 5 Million Homes

Dec 17, 2024, 07:47 PM

The Biden administration has announced a record low-interest loan commitment of $15 billion to Pacific Gas and Electric Company (PG&E), California's largest utility. This funding, provided by the U.S. Department of Energy, aims to support PG&E's efforts to upgrade its electrical grid and enhance climate resilience. The loan is intended to finance a range of projects that will improve infrastructure, reduce emissions, and help the utility manage rising power demand and extreme weather conditions. Importantly, the loan agreement stipulates that future administrations will not have the authority to retract the funds. PG&E serves approximately 5 million homes in California and has faced scrutiny over its management of power lines and wildfire risks. This loan marks the largest loan commitment ever made by the Department of Energy's Loan Programs Office, highlighting the administration's focus on combating climate change and improving energy infrastructure.