Pacific Gas and Electric Company (PG&E) and nonprofit organization Citizens Energy Corporation have submitted a proposal to the California Public Utilities Commission (CPUC) outlining an investment initiative aimed at strengthening California’s electric grid while offering financial assistance to eligible customers.
Under the proposed program, Citizens Energy would invest up to $1 billion in PG&E’s electric transmission system, with a portion of the after-tax profits — estimated at more than $450 million over 35 years — allocated to support bill-paying assistance for low- and moderate-income PG&E customers.
According to the proposal, customers would not incur additional costs for system upgrades on the leased transmission assets beyond what they would pay under standard infrastructure improvements.
Community organizations have expressed support for the initiative, citing potential benefits for both energy reliability and affordability.
“We support innovative investments in the electric grid that align with California’s transition to cleaner energy sources,” said Tom Knox, executive director of Valley Clean Air Now, a nonprofit focused on reducing air emissions in California’s San Joaquin Valley. “This program also provides direct financial assistance to households in need, which is a critical component of ensuring energy affordability.”
Originally filed in March 2023, the proposal was updated following discussions with consumer and community advocates to include the direct bill-assistance component.
Citizens Energy President Joseph P. Kennedy III emphasized the nonprofit’s commitment to enhancing energy access and affordability.
“Our goal is to support a safe, reliable, and affordable energy system,” Kennedy said. “This initiative not only contributes to grid resiliency but also provides direct financial relief to families, helping to address the affordability challenges of electricity while supporting California’s clean energy goals.”
Citizens Energy, founded in 1979, has provided over $600 million in charitable benefits, including utility bill assistance for low-income households and funding for clean energy initiatives.
PG&E would use the investment to modernize the grid, improve reliability, and prepare for increased electricity demand from sources such as electric vehicles and electric heating appliances.
“Our collaboration with Citizens Energy represents an innovative approach to strengthening the electric grid while also providing direct support to our customers,” said Jason Glickman, PG&E Corporation Executive Vice President, Engineering, Planning and Strategy. “As California’s energy needs grow, this program would help ensure continued investment in critical infrastructure while keeping costs manageable for customers.”
Program Details
- PG&E would retain ownership and maintenance responsibilities for the assets.
- Citizens Energy would invest up to $1 billion, allocating a portion of after-tax profits for customer bill assistance.
- The assistance portion would start at 50% of after-tax profits from the first $200 million invested and increase to 90% from the final $200 million.
- The program requires regulatory approval from CPUC and the Federal Energy Regulatory Commission (FERC), with the first lease option expected to close in 2026. Up to four additional lease options may follow.
- Similar programs between Citizens Energy and San Diego Gas & Electric (SDG&E) have received regulatory approval to support transmission upgrades and clean energy investments.
