Biden Administration Approves $15 Billion Loan to PG&E for Grid Modernization and Wildfire Prevention

Dec 17, 2024, 07:47 PM

The Biden administration has announced a conditional commitment to provide a record $15 billion low-interest loan to Pacific Gas & Electric (PG&E) through the Department of Energy's Loan Programs Office. The loan, the largest ever from the office, aims to modernize PG&E's power grid, expand clean energy infrastructure, improve climate resiliency, and prevent wildfires across Northern and Central California. The funds will support projects such as upgrading transmission capacity, expanding hydropower and battery storage, and enabling virtual power plants. PG&E, which serves approximately 16 million people, expects the loan to save customers up to $1 billion over its lifespan by reducing borrowing costs. The utility, which filed for bankruptcy in 2019, has faced a 56% rise in rates over the past three years. PG&E submitted its application for the loan in 2023. The initiative is part of the Energy Infrastructure Reinvestment program and comes as the Biden administration accelerates clean energy investments before the transition to the Trump administration. The loan will be disbursed in installments over several years, contingent on meeting technical, legal, and environmental conditions.