California’s PG&E secures $15B loan from Biden administration. Critics call it a ‘bailout’

The good people of Iowa and Florida, well run States, are going to pay for the failures of Gavin Newsom and the Sacramento Democrats.  They created bad policies, refused to clean the forests, got gigantic fires.  That caused high insurance rates.  Now, Biden is going to bail out the incompetent Democrat UniParty.

“The Biden administration will provide a record $15 billion loan to Pacific Gas & Electric to support the utility’s efforts to combat climate change and improve the power grid. The Department of Energy loan comes as a financial boon for the utility recovering from bankruptcy and facing pressure to limit rate It is expected to fund projects for hydroelectric infrastructure upgrades, renewable energy projects and transmission investments.

The cash infusion will “pay for planned projects that are intended to enhance California’s energy infrastructure, help ensure reliability, and support distributed energy resources including battery storage and electric vehicles,” PG&E representatives said in a release, adding that it will improve affordability. The loan, the largest in the history of the Energy Department’s Loan Programs Office, will give PG&E cash installments over several years for approved projects.”

Note that the people in hurricane ravaged North Carolina can’t get Federal help.  But, bad policies of Newsom get $15 billion to cover up the mismanagement and bad policies.  The people of North Carolina and the rest of the nation should be upset.

California’s PG&E secures $15B loan from Biden administration. Critics call it a ‘bailout’

By Ari Plachta, Sacramento Bee,  12/17/24  https://www.sacbee.com/news/california/article297242369.html#storylink=cpy

 The Biden administration will provide a record $15 billion loan to Pacific Gas & Electric to support the utility’s efforts to combat climate change and improve the power grid. The Department of Energy loan comes as a financial boon for the utility recovering from bankruptcy and facing pressure to limit rate It is expected to fund projects for hydroelectric infrastructure upgrades, renewable energy projects and transmission investments.

The cash infusion will “pay for planned projects that are intended to enhance California’s energy infrastructure, help ensure reliability, and support distributed energy resources including battery storage and electric vehicles,” PG&E representatives said in a release, adding that it will improve affordability. The loan, the largest in the history of the Energy Department’s Loan Programs Office, will give PG&E cash installments over several years for approved projects.

The utility applied for the loan last year and been in negotiations over the final amount since, according to a spokesperson. That cash “will help PG&E meet forecasted load growth increase electric reliability, and reduce costs for its consumers across California,” according to a release by the DOE loan office. Energy demand in the state is projected to increase by up to 76% by 2045, driven by electrification of transportation and buildings.

Under the Biden administration, the loan office has made more than $40 billion in loan commitments through the 2022 Inflation Reduction Act. It has reportedly been amping up efforts to distribute more cash before President-elect Donald Trump assumes office. Tuesday’s announcement prompted criticism from environmental advocates, who questioned stated benefits to ratepayers. PG&E customers saw four rate hikes this year, and face some of the highest electric bills in the nation.

“This loan is less a solution for California’s energy future and more a bailout for PG&E,” said Ken Cook, president of Environmental Working Group. “Given the company’s disastrous track record of corruption and mismanagement, it’s hard to see how this federal loan will do anything but impose even greater financial hardship on millions of struggling ratepayers who can least afford it. Among California’s investor-owned utilities — Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric — electricity rates have gone up by as much as 110% in the last decade, and more than 50% just in the last three years.

PG&E reported a record profit of $2.24 billion in 2023, a 24% increase from the previous year. The company also noted that revenues from electric customers surged nearly 50% in the second quarter of this year, compared to the same period last year. Earlier this year, Gov. Gavin Newsom and a handful of lawmakers sought to tackle rising electric costs in this legislative session but their efforts quickly fizzled following utility opposition. Utility representatives have said that PG&E is attempting several strategies to limit average annual bill increases to no more than 3% through 2026.

One thought on “California’s PG&E secures $15B loan from Biden administration. Critics call it a ‘bailout’

  1. The Democrats in power will always do what ever they can to support their loyalists and donners. Not so much so with Republicans. They don’t support their own office holders.

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