The U.S. Department of Energy announced a conditional commitment for one of the largest loan guarantees ever under its Energy Infrastructure Reinvestment program. When finalized, the money would be loaned in installments over several years.
The funds would support a portfolio of projects to expand hydropower generation and battery storage, upgrade transmission capacity, and enable virtual power plants throughout PG&E鈥檚 service area, the energy department said.
PG&E submitted its application to the agency's Loan Programs Office in June 2023. Partially funding its projects with lower-cost federal loans could save customers up to $1 billion over the life of the financing, the utility said in a statement Tuesday.
鈥淚nvestments in a clean and resilient grid for northern and central California will have significant returns for our customers in safety, reliability and economic growth. 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,鈥� PG&E CEO Patti Poppe said in the statement.
The Sierra Club, the environmental advocacy group, cheered PG&E's commitment to modernizing the power grid and expanding clean energy infrastructure.
鈥淭his innovative loan program will help ensure that Californians will see more stable rates, enjoy more good clean energy jobs and live with fewer harmful emissions. This unprecedented windfall also offers a unique opportunity for PG&E to update its outdated transmission infrastructure with more efficient, climate-friendly and fire-safe technology," Sierra Club organizer Julia Dowell said in a statement Tuesday.
The loan office hopes to finalize the commitment before President Joe Biden leaves office next month.