U.S. Offers Historic $15 Billion Climate Resilience Loan to PG&E

The U.S. will provide a $15 billion low-interest loan to PG&E for climate resilience projects and grid upgrades. The funding will support the refurbishment of hydroelectric infrastructure and power lines. PG&E, serving 16 million in California, is also raising $2.4 billion via a stock offering.

The United States is set to offer an unprecedented $15 billion low-interest loan to California's PG&E, aimed at bolstering climate resilience projects and enhancing the electrical grid. This move, reported by the Wall Street Journal, underscores the federal government's commitment to modernizing the country's utility infrastructure.

PG&E Corp, the parent company of Pacific Gas and Electric Company, stands as one of the largest utility providers in the U.S., catering to 16 million residents across northern and central California. The Department of Energy's Loan Programs Office will facilitate this financial support, which will fund crucial projects for refurbishing PG&E's hydroelectric infrastructure and power lines.

In a bid to further enhance its infrastructure, PG&E recently announced plans to generate $2.4 billion through a stock offering. This aligns with a broader trend where U.S. utilities conduct stock offerings and seek rate adjustments to combat grid stress from extreme weather and growing industrial demand. Both the Department of Energy and PG&E have not yet commented on this development.

(With inputs from agencies.)