San Francisco explores buying PG&E's local distribution assets
The San Francisco Public Utilities Commission hired Jefferies to explore a bid for the local distribution assets of PG&E (NYSE: PGC).
Why it matters: San Francisco would be betting that a long and costly process would ultimately pay off in the form of more stable and transparent rates for customers, modeling itself after a government-run utility scheme currently employed in Los Angeles.
- Pricing: SFPUC previously estimated that the assets would cost “in the neighborhood of a few billion dollars.”
- The bottom line: PG&E entered Chapter 11 bankruptcy protection in January, due to more than $30 billion in liabilities related to The Camp Fire.