The US Department of Energy (DoE) has provided a conditional commitment for a $15 billion loan to California-based electric utility PG&E.
If finalized by the DoE’s Loan Programs Office (LPO), the loan will support multiple energy projects in California and strengthen the state’s energy infrastructure, helping achieve both federal and state climate goals.
The upgrades will include advanced sensors, telemetry, and controls to support two-way power flow, enhancing grid resilience during extreme weather events like heat waves and high winds. Additionally, PG&E will refurbish its hydroelectric infrastructure, which generates energy for four million homes with over 3.8 GW of electricity.
The initiative also includes expanding and upgrading substations and transmission networks, as well as increasing energy storage with battery energy storage systems (BESS). PG&E has 4.2 GW of battery storage under contract.
Funds may also be used to enhance 400 MW of virtual power plants in PG&E’s system to ensure two-way power delivery. Low-cost federal loans could save PG&E billpayers $1 billion over the financing period.
PG&E CEO Patti Poppe highlighted that investments in a clean and resilient grid will provide significant returns in safety, reliability, and economic growth for northern and central California.