PG&E nears deal to sell power assets to investment firm KKR
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California utility Pacific Gas & Electric (PG&E) announced that it is close to finalizing an agreement to sell its power generation assets to KKR, a global investment firm based in New York City with interests in various sectors including energy and infrastructure.
PG&E has been pursuing funds to cover wildfire mitigation efforts throughout its service area and other capital expenditures, such as electrification projects.
The utility filed for bankruptcy in 2019 following investigations that found its equipment was responsible for deadly wildfires in Northern California in 2017 and 2018.
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“We believe an investment from KKR would immediately enhance our financial position as we continue our pursuit of a clean energy future,” said Carolyn Burke, the utility’s chief financial officer.
“As we continue to build our systems, we must accelerate the infrastructure investments that will enable us to provide our customers with safe, sustainable, reliable and affordable energy,” Burke added.
In acquiring part of Pacific Generation, KKR would benefit from returns on capital investments in the generation assets and revenue from electricity sales.
KKR’s infrastructure investment arm manages approximately $59 billion in assets and focuses on various energy investments, primarily in oil and gas exploration companies like Genesis Energy in Houston, Texas, and Colonial Pipeline in Alpharetta, Georgia.
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