PCG - PG&E seeks $7B federal loan to cut California wildfire risk - WSJ

2023-06-29 07:23:14 ET

PG&E ( NYSE: PCG ) has applied for a ~$7B federal loan to fund its plans to reduce California wildfire risk by burying power lines and upgrading the electric grid, The Wall Street Journal reported Thursday, citing company officials.

PG&E ( PCG ) reportedly was invited to apply for funding from the U.S. Department of Energy's Loan Programs Office, which finances critical energy projects tied to the shift away from fossil fuels; if approved, the loan would rank among the office's largest ever.

The utility hopes to use the loan to help fund the burial of 10K miles of power lines in regions at high risk of fire, replace overloaded transmission conductors that carry power, and upgrade substations, CEO Patti Poppe told WSJ in an interview.

Poppe said PG&E ( PCG ) - which faces challenges raising money from Wall Street after its bankruptcy restructuring - must prepare for a surge in electricity demand driven by California's shift to electric vehicles.

PG&E's ( PCG ) power lines have sparked more than 20 major wildfires in recent years, including the 2018 Camp Fire that killed 84 people and destroyed the town of Paradise, California; the company has lately focused on burying power lines as a way to reduce fire risk.

More on PG&E:

• Financial and valuation comparison to sector peers
• Analysis: PG&E Investor Day: Potential Dividend Reinstatement And Reduced Wildfire Risk
• Stock price return: Up 7.5% YTD, up 66.5% in the past 12 months

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