The Facts

San Francisco’s proposed takeover of PG&E’s local electric grid could cost over $20 billion when including separating the systems and building replacement facilities, not just buying the city’s wires and substations.

PG&E’s detailed testimony on a potential buyout is due October 20 before the California Public Utilities Commission, the state utility regulator. Customers would repay acquisition bonds through electricity bills.

The Context

The city’s $3.4 billion figure is an asset valuation, not an all-in takeover budget. The city’s plan already anticipates a replacement PG&E substation, despite PG&E's suggestion that such expenses have been overlooked.

As we previously reported, competitive crew compensation, acquisition debt, and grid upgrades all complicate promises of cheaper public power.

The GrowSF Take

This number deserves as much scrutiny as the potential takeover. PG&E has an obvious interest in keeping its customers and inflating the buy-out cost.

We remain unconvinced either way. Before approving a purchase, Supervisors should require a comparison showing what customers would actually pay under public ownership versus staying with PG&E, including separation, debt, staffing, and upgrades.