PCG - PG&E's plan to spin off 5.6 GW ahead of possible stake sale OK'd by FERC

2023-06-02 13:12:04 ET

The Federal Energy Regulatory Commission approved PG&E's ( NYSE: PCG ) proposal to transfer 5.6 GW of non-nuclear generating assets to a new subsidiary in preparation for selling a 49.9% stake in it to another company, UtilityDive.com reported Friday.

Although California's approval of the asset transfer is pending, PG&E ( PCG ) has said it expects to launch a sale process this month.

In its decision, FERC dismissed arguments that the potential sale to a third party should be analyzed as part of the proposal to spin off the generating assets into Pacific Generation, as well as concerns about a possible sale to private equity.

PG&E ( PCG ) plans to sell a minority stake in Pacific Generation to one or more third-party investors so it can access equity capital more efficiently than through the sale of additional company stock.

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