PG&E Seeks to Spin Off its Non-nuclear Generation Assets to PG&E Subsidiary

March 2023Currents
Written By Ron Stork

PG&E’s Porterville Hydropower Plant. Photo courtesy of CDWR.

The perennially bankrupt PG&E has made a proposal to the California Public Utilities Commission (CPUC) to form a subsidiary with a 49% non-PG&E stake to own its non-nuclear generation assets. The reason — to raise some cash from investors in the new subsidiary.

Presumably, PG&E believes that spinning off some of the ownership of PG&E is an easier way to raise cash than just issuing corporate bonds. Who knows, they may be right.

But dealing with PG&E and how they manage their extensive fleet of dams, diversions, and powerhouses is already pretty challenging. It could be made more difficult when their fleet of hydroelectric facilities is co-owned by major investors who may bristle at undertaking investments to live up to PG&E’s environmental responsibilities.

We’ve stuck our oar in this one as part of our membership in the California Hydropower Reform Coalition with an accepted motion to intervene in the CPUC preceding. So, stay tuned.

Ron Stork

Ron has worked for decades in flood management, federal water resources development, hydropower reform, and Wild & Scenic Rivers. He joined Friends of the River as Associate Conservation Director in 1987, and is now a senior member of FOR’s policy staff.

Ron was presented the prestigious River Conservationist of the Year award by Perception in 1996 for his work to stop the Auburn dam. In 2004, he received the California Urban Water Conservation Council’s Excellence Award for statewide and institutional innovations in water conservation. In 2024, he received the Frank Church Wild and Scenic Rivers award from the River Management Society for outstanding accomplishments in designation and management of wild and scenic rivers in California and nationally.

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