U.S. Offers $15B Loan to PG&E for Climate Resilience

The U.S. Department of Energy proposed a conditional $15 billion loan to PG&E for enhancing climate resilience in California. The funds aim to refurbish power infrastructure and expand battery storage. The loan awaits finalization under President Biden as utilities brace for extreme weather conditions.

The United States has offered a conditional loan of up to $15 billion to the California-based utility PG&E. The loan intends to bolster climate resilience by allowing PG&E to upgrade its electrical grid, according to the Department of Energy on Tuesday.

PG&E, which serves about 16 million people across northern and central California, plans to use the funds for refurbishing its hydroelectric infrastructure and power lines, with provisions for expanding battery energy storage and transmission. The loan, if finalized by the DOE's Loan Programs Office, will be disbursed over several years.

This financial move comes as part of the Biden administration's push to rapidly deploy billions in LPO financing, even as the future of such loans hangs in the balance with President-elect Donald Trump set to take office. Meanwhile, PG&E is also preparing to raise $2.4 billion through a stock offering to further finance its infrastructure projects.

(With inputs from agencies.)