Pacific Gas & Electric Corp. (PG&E) is currently in exclusive negotiations with KKR, a prominent private equity firm, focusing on a potential sale of a minority interest in its subsidiary, Pacific Generation LLC. This strategic move, aligning with KKR’s infrastructure agenda, promises to slash customer rates by over $100 million within the next two decades.
PG&E and KKR Partial Sale Exclusive Talks : Strategic Partnership Details
Under the terms being discussed, PG&E would retain majority control over Pacific Generation. The existing workforce is expected to continue their roles, ensuring operational stability and maintenance of the generation facilities, as stated in a recent announcement on Tuesday.
While the specific scale of the deal remains undisclosed, early reports from the Wall Street Journal estimate its value could reach as high as $3 billion. This development follows PG&E’s September 2022 disclosure, where the company sought approval to shift its non-nuclear power-generation assets to the newly established Pacific Generation, along with a minority ownership.
Enhanced Customer Benefits and Strategic Investments
Carolyn Burke, PG&E’s CFO and Executive Vice President, emphasized the rigorous investor selection process, concluding with KKR as the preferred partner. “KKR’s partnership would significantly benefit our customers by bolstering investments in essential generation and storage assets, pivotal for clean and dependable energy, and offering a pathway to reduced rates,” Burke explained.
