May 1, 2024 - Business

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

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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