US offers PG&E a conditional loan of up to $15 billion for climate resilience

The Department of Energy announced on Tuesday that the United States had offered PG&E, a California-based utility, a conditional $15 billion loan to upgrade its electrical grid and support climate resilience. PG&E is a natural-gas and electric utility and the parent company of Pacific Gas and Electric Company. It serves about 16,000,000 people in northern and central California.

The loan will be paid in cash over several years if the U.S. Department of Energy Loan Programs Office finalizes the record amount. It will be used for projects to refurbish PG&E’s hydroelectric and power lines. The loan will also be used to expand battery energy storage and transmission.

The LPO is facing an uncertain future as President Biden's administration rushes to provide billions in funding.

Donald Trump, President-elect

, who will take office on January 20. PG&E announced earlier this month that it would raise $2.4 billion via a stock offer.

Before the U.S. funds and signs the definitive loan documents, the DOE and PG&E have to meet technical, legal, financial, and environmental conditions.

U.S. utilities are filing rate cases and making stock offers to fund infrastructure upgrades. This is because the power grids in this country face extreme weather conditions like hurricanes and fires as well as a surge in demand from industrial clients such as data centers.

PG&E didn't immediately respond to a request for comment. (Reporting from Bipasha Dey, Mrinalika Roy and Timothy Gardner in Bengaluru; editing by Shailesh Kumar and Nick Zieminski.)

(source: Reuters)