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San Francisco says it has submitted a $2.5 billion non‑binding offer for PG&E distribution assets
Summary
The San Francisco Public Utilities Commission disclosed that the city submitted an indicative, non‑binding $2.5 billion offer to acquire Pacific Gas & Electric’s electric distribution and transmission assets that serve San Francisco; staff said the offer would require multiple approvals and detailed negotiations before becoming binding.
San Francisco officials told the Public Utilities Commission on Tuesday that the city has submitted a non‑binding, indicative offer of $2,500,000,000 to acquire Pacific Gas & Electric Co.’s electric distribution and transmission assets serving San Francisco.
General Manager Kelly said the proposal was developed with financial advisors, including Jefferies LLC, and that the letter filed with PG&E is only an initial, nonbinding step. "This offer represents a fair, equitable and competitive package," staff said, but added that a binding city offer would require specific terms to be approved later by the commission and the Board of Supervisors.
Barbara (PUC staff) told commissioners the city and mayor’s office issued statements and that the San Francisco Chronicle was the first local outlet to publish details. She said reporters asked about the effect on customers who would remain with PG&E; staff stated that San Francisco accounts for roughly 5% of PG&E’s sales by energy and estimated that lost revenue to PG&E could raise remaining customers’ bills by about $1 a month, while San Francisco could see larger reductions in its low‑voltage charges.
Commissioners and public commenters pressed staff on next steps, public outreach and staffing. Barbara reiterated that the timeline depends on PG&E’s willingness to negotiate; staff also emphasized that further approvals would be necessary before any transaction could proceed.
No formal vote to approve acquisition authority or financing was taken at the meeting. Staff said the city has prepared background materials (including a May options report) and will return with more detailed proposals and, if appropriate, specific votes on terms and financing later in the public process.
