San Francisco is advancing towards possible legal action against Pacific Gas & Electric Co. (PG&E) as city officials consider municipalizing electricity distribution. This decision follows a recent blackout that left approximately 130,000 homes and businesses without power, intensifying existing frustrations over PG&E’s reliability and inadequate response times. The ongoing tensions have prompted city leaders to pursue legislative measures aimed at severing ties with the troubled utility.
State Senator Scott Wiener plans to propose legislation that would simplify the process for municipalities like San Francisco to create public utilities. According to the SF Standard, Wiener criticized PG&E for its size and failure to maintain infrastructure adequately, stating, “PG&E is too large, and it’s not adequately maintaining its infrastructure.” He emphasized that the utility appears to prioritize “the interest of shareholders above the public interest.”
Support for public takeover is also gaining momentum among local officials. Supervisor Matt Dorsey indicated that the city could finance the acquisition of necessary infrastructure through bonds. San Francisco has been scrutinizing PG&E’s electrical network since the company’s 2019 bankruptcy, which has heightened concerns about reliability.
In 2024, the city previously offered $2.5 billion for PG&E’s infrastructure serving San Francisco, but the bid was declined. Despite this setback, the push for municipalization continues. Reports from Mission Local highlight the city’s ongoing legal efforts to establish a fair valuation of PG&E’s assets as a precursor to potential eminent domain actions. Former San Francisco Public Utilities Commission general manager Susan Leal remarked, “Right now, literally and figuratively, this should be a fire sale.”
PG&E has countered these efforts by accusing the city of not specifying which assets it intends to acquire and for failing to provide a coherent plan for separating the grid. The utility claims that the onus is on San Francisco to clarify its intentions. Nonetheless, the city’s recent blackouts, combined with PG&E’s history of maintenance deficiencies and catastrophic incidents, have led to a growing mistrust among residents and officials.
The CPUC report from 2024 indicates a troubling trend: San Francisco has experienced increased outages and longer restoration times over the past decade. This data further exacerbates the strained relationship between the city and PG&E, intensifying calls for a shift in control over electricity distribution.
As San Francisco navigates this complex situation, the outcome of the potential legal action remains to be seen. The city’s determination to establish a more reliable public utility could significantly alter the landscape of electricity distribution in the region, providing residents with the accountability and service they have long sought.