May 1, 2024 - Business

PG&E seeks KKR deal to help fund California wildfire prevention

Dan Primack

Collage illustration of an upward view of an electric tower with smoke and flames from a wildfire in the background — Illustration: Annelise Capossela/Axios

California utility PG&E said it's it's in talks to sell a minority stake in its power generation unit to KKR.

Why it matters: PG&E, which serves millions of California residents and businesses, needs capital to help finance its grid upgrade and wildfire prevention work, as it seeks to prevent a repeat of the 2019 Camp Fire that caused deaths and sent the company into bankruptcy.

It's also getting criticized for high consumer bills, and claims the KKR deal could lower those costs by $100 million over the next two decades.

The bottom line: This deal still needs signoff by California utilities regulators, who so far have expressed skepticism. There also are a slew of outside organizations lining up in opposition.

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PG&E seeks KKR deal to help fund California wildfire prevention

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