The Biden administration is offering a multi-billion-dollar loan to Pacific Gas & Electric to improve its power lines linked to wildfires and meet rising energy demand. The California Department of Energy says that any financial benefits that come from the loan must be passed onto customers. John Geesman, a former California Energy Commissioner, says he doubts that will happen.
Geesman says the DOE is not equipped to oversee a loan of this size to a borrower like PG&E. If finalized, the 15-billion-dollar loan will allow PG&E to increase hydropower production and battery storage, as well as expand its power transmission system to connect with new clean energy sources.
According to the company, the loan would come with lower interest rates, potentially saving customers up to one-billion dollars over time. PG&E’s electric rates have surged by 56 percent over the past three years, the highest among major utility companies, with four rate increases this year alone.
PGE Offered $15B Loan to Improve Power Lines
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