PG&E and Citizens Energy Corp. have thrown down a gauntlet in the energy sector, proposing a bold $1 billion investment program that could reshape how utilities support low- and moderate-income households. The plan, submitted to the California Public Utilities Commission (CPUC), is a double-edged sword: it promises to bolster PG&E’s electric grid while funneling over $450 million into the pockets of customers struggling with energy bills. This isn’t just about throwing money at a problem; it’s about reimagining how utilities can drive social equity while modernizing infrastructure.
The program’s design is clever. Citizens will invest up to $1 billion in PG&E’s electric system upgrades, then use a significant chunk of its after-tax profits to provide direct bill-paying assistance to customers in need. This isn’t a handout; it’s a strategic investment in both infrastructure and social welfare. The program ensures that customers won’t pay more for the electric system work on the leased transmission assets than they would without the program. This is a win-win scenario where customers see no increase in costs, but they do see a more reliable grid and some much-needed financial relief.
The program’s potential impact is vast. It could set a new standard for how utilities approach affordability and reliability. PG&E and Citizens are not just talking about keeping the lights on; they’re talking about making energy more affordable for those who need it most. This could be a game-changer for California, a state that has long grappled with high energy costs and a growing demand for electricity, especially as more residents switch to electric vehicles and heating appliances.
The program has already garnered support from community-based organizations. Tom Knox, executive director of Valley Clean Air Now, praised the initiative, saying, “We support innovative investments in the electric grid that would help California continue its efforts to transition energy sources for the transportation and housing sectors.” He also highlighted the program’s potential to benefit disadvantaged households by providing direct assistance in paying their utility bills.
Citizens Energy Corp. President Joseph P. Kennedy III emphasized the program’s alignment with the nonprofit’s mission. “Our vision is a safe, reliable and affordable energy system that leaves no one behind,” Kennedy said. “This program with PG&E will provide much-needed electricity savings to families across the region and at the same time, help fund electric system upgrades that will enable California to meet its bold climate goals.”
PG&E, for its part, sees this as a way to stabilize bills while meeting growing electric demand. Jason Glickman, PG&E Corp. Executive Vice President, Engineering, Planning and Strategy, stated, “Our proposed program with Citizens would support system upgrades while providing assistance to our customers to pay their bills.” This is a clear signal that PG&E is committed to tapping nontraditional funding to help stabilize bills and meet the state’s ambitious climate goals.
The program’s success hinges on regulatory approval from the CPUC and the Federal Energy Regulatory Commission (FERC). If approved, PG&E and Citizens expect to close on the first lease option in 2026, with up to four more leases to follow. This timeline is ambitious, but the potential payoff is significant. If this program is successful, it could serve as a blueprint for other utilities looking to balance infrastructure investment with social equity. It could also spur innovation in how utilities approach affordability, reliability, and sustainability.
The energy sector is at a crossroads. Traditional funding models are being challenged by the need for more resilient, affordable, and sustainable energy systems. PG&E and Citizens Energy Corp.’s proposed program is a bold step forward, one that could reshape how utilities approach these challenges. It’s a call to action for other utilities to think creatively about how they can support their customers and communities while modernizing their infrastructure. The energy sector needs more of this kind of innovative thinking if it’s going to meet the challenges of the 21st century.
