The Biden-Harris administration’s Department of Energy (DOE) announced Tuesday it had offered a conditional loan of up to $15 billion to Pacific Gas & Electric Company (PG&E), a California utility company, according to a press release.
The proposed financing from the DOE Loan Programs Office (LPO) is intended to fund a variety of projects aiming to “expand hydropower generation and battery storage, upgrade transmission capacity through reconductoring and grid enhancing technologies, and enable virtual power plants,” according to the press release. The loan commitment is the largest in LPO’s history.
PG&E previously filed for bankruptcy in early 2019, following several massive wildfires that were sparked by its equipment. The utility company announced in April 2022 that it would pay $55 million in order to avoid criminal charges related to two wildfires, the 2019 Kincade Fire and 2021 Dixie Fire. PG&E emerged from Chapter 11 bankruptcy in July 2020 following a months-long reorganization process, according to Reuters.
The purpose of the LPO is to be “the premier public financing partner that accelerates high-impact energy and manufacturing investments to advance America’s economic future,” according to the office’s website. The LPO has issued $43.9 billion worth of loans and loan guarantees as of Sept. 30, according to its website.
“Investments in a clean and resilient grid for northern and central California will have significant returns for our customers in safety, reliability and economic growth,” PG&E Corporation CEO Patti Poppe said in a Tuesday press release. “The DOE loan program can help us accelerate the pace and impact of this work, which supports thousands of living wage jobs, at a lower cost to our customers.”
The Biden-Harris administration has led an effort to disburse funding for various green energy projects across the nation as part of President Joe Biden’s signature climate agenda.
“The work our members perform every day is essential for PG&E to modernize its grid. IBEW 1245 is encouraged by PG&E’s commitment to rebuild, retool and reinvest in energy infrastructure that is critical to California to achieve our electric reliability and climate resilience goals, and provide these benefits to PG&E customers at a lower cost,” Bob Dean, IBEW 1245 business manager, said in the press release.
LPO Director Jigar Shah announced in July that his office had reached a conditional commitment to loan Entek, a company that makes electric vehicle components that is also is linked to his old trade association. Some House Republicans previously threatened Shah with a subpoena in January as part of a probe into his office.
The DOE referred the Daily Caller News Foundation to a Tuesday press release when reached for comment.
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