San Francisco supervisors reject PG&E appeal to delay public power transition

The San Francisco Board of Supervisors has rejected an appeal by PG&E regarding the Environmental Impact Report (EIR) required for the city to proceed with acquiring the utility's local infrastructure. The decision clears a path for the San Francisco Public Utilities Commission (PUC) to move toward a buyout of the local grid, which includes assets such as poles, substations, and wires.

Efforts to transition to public power began in 2019. While the city estimates the value of the local distribution system at approximately $3.4 billion, PG&E is expected to seek a higher price. Proponents suggest the city could fund the acquisition through municipal revenue bonds, noting that electricity sales in San Francisco generate significant revenue that could cover bond payments and operating costs.

The process faces potential political hurdles. While all 11 supervisors support the move, concerns have been raised regarding Mayor Daniel Lurie’s stance and the upcoming retirement of PUC General Manager Dennis Herrera. The next phase of the dispute is expected in October, when the utility must provide its valuation of the local distribution system.