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Public utilities

Pacific Gas and Electric Company Seeks Wildfire Rate Relief Bond Authority

Strategic Insights

— 1 min read

The California Public Utilities Commission has begun reviewing the application of Pacific Gas and Electric Company (PG&E) for authority to issue wildfire rate relief bonds for costs and expenses related to wildfires. The application, which was filed on June 25, 2025, seeks to issue bonds worth up to $10 billion to cover wildfire-related costs and expenses. The proposed bonds would be secured by a revenue bond indenture and would have a maturity date of 2035.

Key Takeaways:

  • The application was filed by PG&E on June 25, 2025, and seeks to issue wildfire rate relief bonds worth up to $10 billion.
  • The proposed bonds would be secured by a revenue bond indenture and would have a maturity date of 2035.
  • The bonds would be used to cover wildfire-related costs and expenses, including costs associated with the 2020 and 2021 California wildfires.
  • The application was served to all known parties of record, including TURN, Southern California Edison Company, and the Public Advocates Office.
  • The California Public Utilities Commission is currently reviewing the application and has certified that the notice of ex parte communication has been served to all parties of record.
  • The application alleges that PG&E has suffered significant financial losses due to the 2020 and 2021 California wildfires, and that the proposed bonds would help to mitigate these losses.
  • The application also alleges that the proposed bonds would be a more efficient and cost-effective way for PG&E to fund wildfire-related costs and expenses, rather than relying on shareholder equity or borrowed funds.

Statistics:

  • The proposed bonds would be worth up to $10 billion.
  • The maturity date of the proposed bonds would be 2035.
  • The revenue bond indenture would secure the proposed bonds.
  • The application alleges that PG&E has suffered financial losses of up to $10 million due to the 2020 and 2021 California wildfires.
  • The proposed bonds would be used to cover wildfire-related costs and expenses, including costs associated with firefighting efforts, property damage, and other expenses.

Sources:

  • Certificate of Service, Ex Parte Communication Notice, and Application of Pacific Gas and Electric Company for Authority to Issue Wildfire Rate Relief Bonds, filed with the California Public Utilities Commission on August 4, 2025.
  • Exhibit A, Wildfire Rate Relief Bond Indenture, filed with the California Public Utilities Commission on August 4, 2025.

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