The collaboration aims to expedite investments in critical infrastructure, enhancing PG&E’s ability to deliver safe, sustainable, and economical energy solutions. With KKR’s strategic backing, PG&E plans to enhance its capacity in cleaner energy generation technologies such as hydro and pumped storage, as well as other necessary energy storage systems to stabilize California’s mix of intermittent renewable resources and curb market volatility.
Impact on Community and Environmental Goals
The agreement is set not only to lower customer expenses but also to provide PG&E with the necessary capital for continued investments in wildfire prevention, safety enhancements, and the development of the Pacific Generation fleet. Moreover, the deal aligns with California’s broader decarbonization and electrification ambitions, with KKR’s infrastructure strategy aiming for all its investments to achieve net-zero emissions by 2050 or earlier.
Raj Agrawal, KKR’s partner and global head of infrastructure, expressed confidence in the partnership’s potential, stating, “Our commitment to sustainable investing and long-term asset management ideally positions us to support Pacific Generation in this pivotal phase.”
PG&E and KKR Partial Sale Exclusive Talks : Regulatory Approval and Future Prospects
The proposed transaction remains contingent upon approval from regulatory bodies including the California Public Utilities Commission and the Federal Energy Regulatory Commission, along with other standard closing conditions. As discussions continue to evolve, both PG&E and KKR are optimistic about the transformative benefits this partnership could deliver to the facilities, their workforce, and the residents of California.
