Amid Blackouts, PG&E Rejects San Francisco Offer to Buy City Assets
Posted on 10/12/2019
A significant portion of the California population wants to turn PG&E into a public utility. The bankrupt PG&E Corporation rejected a US$ 2.5 billion offer from the City of San Francisco to acquire the utilities power lines and infrastructure within the city. PG&E Corporation believes the offer significantly undervalues the assets. In the letter by PG&E CEO Bill Johnson, “Although we cannot accept your offer, we want to clearly communicate that PG&E intends to continue working with the City to best serve the citizens and businesses of San Francisco.”
PG&E Corporation’s plans to emerge from bankruptcy did not include the utility from selling off corporate assets.
PG&E serves more than 16 million people. In a bid to reduce the risk of wildfires, in October, PG&E angered California residents as the utility shut off power in certain parts of California, leaving people to fend for themselves. PG&E is calling this a Public Safety Power Shutoff (PSPS). Northern California remains on high alert for wildfires.