PG&E Values San Francisco Grid Takeover at $22.5 Billion
Pacific Gas and Electric Company told regulators that a city-led takeover of San Francisco's electric grid would cost $22.5 billion, far exceeding the city's $3.4 billion estimate.
The Pacific Gas and Electric Company filed testimony with the California Public Utilities Commission stating that a proposed takeover of its San Francisco electric distribution grid by the City and County of San Francisco would cost $22.5 billion. This valuation sharply contradicts an April 2026 petition from San Francisco, which estimated the fair-market value of the assets at $3.4 billion.
PG&E's valuation includes $13.9 billion for electric and real property assets, $7.6 billion in business severance damages, and $1 billion for physical separation costs. The company argues the city undervalued the underground distribution system and assigned zero value to more than 2,000 real estate interests. Physical separation would require the construction of a new service center and a new substation, likely located in San Mateo County.
PG&E noted it is investing $370 million in San Francisco's grid resilience in 2026, with plans for nearly $2 billion in investments over the next five years.
