Biden Administration Grants PG&E Largest-Ever $15B Loan to Boost Grid, Save $1B for 16M Customers

Dec 17, 2024, 08:35 PM

The Biden administration has announced a conditional commitment to provide Pacific Gas & Electric (PG&E) with a record $15 billion low-interest loan from the U.S. Department of Energy, marking the largest commitment ever from the Department's Loan Programs Office. This financial support aims to bolster the utility's efforts in enhancing its power grid and advancing climate resilience projects across northern and central California. PG&E, serving approximately 16 million people, is expected to use these funds to support a range of initiatives including the expansion of hydropower generation, battery storage, and the upgrade of transmission capacity. The loan, set to be disbursed in installments through 2031, will also fund projects contributing to electric vehicle infrastructure, data centers, and the clean-energy industry. With 4.2 gigawatts of battery storage and 400 megawatts of virtual power plants currently under contract, the initiative is poised to reduce greenhouse gas emissions and improve energy infrastructure. Partially funding these projects with low-cost federal loans could save PG&E's ratepayers up to $1 billion in net present value over the life of the financing.