San Francisco lawmakers announce plan to 'break up' with PG&E - Los Angeles Times

Los Angeles Times

by Hayley Smith

February 23, 2026

AI-Generated Deep Dive Summary

San Francisco lawmakers have introduced Senate Bill (SB) 875, a new piece of legislation aimed at enabling the city to break its long-standing relationship with Pacific Gas & Electric (PG&E). The bill would allow San Francisco to purchase PG&E's assets and establish a publicly owned utility, marking a significant step in a years-long effort to transition away from the investor-owned utility. This move comes amid growing criticism of PG&E's infrastructure, wildfire risks, and high electricity rates in the Bay Area. While supporters argue that a municipal utility could provide better service and lower costs, PG&E has pushed back, claiming the proposed takeover would ultimately increase customer bills. The city has been attempting to exit its 120-year contract with PG&E for over a decade, including a failed $2.5 billion offer in 2019. The current effort involves determining a fair price for PG&E's assets through the California Public Utilities Commission (CPUC), a process that has faced delays due to objections from PG&E. SB 875 aims to streamline this process by setting enforceable timelines and limiting CPUC reviews to ensure fairness for utility employees. Proponents, including Sen. Scott Wiener, argue that San Francisco currently pays the second-highest electricity rates in the nation under PG&E's monopoly, while neighboring cities with municipal utilities pay significantly less. PG&E has countered, stating that government takeovers would not reduce costs but could increase them due to the need for rebuilding infrastructure and covering ongoing programs like wildfire mitigation and low-income customer support. UC Berkeley energy expert Severin Borenstein noted that while rates might decrease for San Francisco residents, they could rise for rural PG&E customers who continue to rely on the utility. This divergence in impacts has sparked debates among stakeholders, with some questioning whether the benefits of a municipal utility outweigh the potential risks and costs. Ultimately, SB 875 represents a pivotal moment in the ongoing struggle over energy policy and public utility ownership in California. The legislation not only reflects San Francisco's push for greater control over its energy future but also highlights broader tensions between investor-owned utilities and municipal efforts to provide more affordable and reliable services. As the bill moves through the legislative process, it will likely spark further discussions about the balance between innovation, affordability, and stability in the state's energy sector.

Verticals

newscalifornia

Originally published on Los Angeles Times on 2/23/2026