San Francisco makes $2.5 billion bid for PG&E's electric system

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San Francisco makes $2.5 billion bid for PG&E's electric system
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The city of San Francisco has offered to buy PG&E Corp's power lines and ot...

FILE PHOTO: A PG&E truck carrying an American Flag drives past PG&E repair trucks in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage

PG&E is expected to file a reorganization plan in a U.S. bankruptcy court in San Francisco this week that addresses its estimated $30 billion in liabilities from wildfires in California in 2017 and 2018, including November’s Camp Fire, the deadliest and most destructive wildfire of the state’s modern history.

“PG&E has been a part of San Francisco since the company’s founding more than a century ago, and while we don’t believe municipalization is in the best interests of our customers and stakeholders, we are committed to working with the City and will remain open to communication on this issue,” the statement added.

The purchase would be funded through a municipal power bond passed by voters last year and would be paid off through customers’ electric bills, according to the San Francisco Chronicle, which also noted the deal would create California’s third-largest government-owned electric utility, after the Los Angeles Department of Water and Power and the Sacramento Municipal Utility District.

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