Recent $ 860 Million Issue Demonstrates Company Commitment to Triple Bottom Line
SAN FRANCISCO, November 16, 2021– (BUSINESS WIRE) – Building on its long-standing commitment to sustainability and environmental management, PG&E Recovery Funding, LLC, a subsidiary of Pacific Gas and Electric Company (the utility), recently completed an $ 860 million green bond issue to finance electrical work that will have significant environmental benefits, while ensuring the safety of customers and hometowns.
PG&E Recovery Funding has issued the bonds to fund a variety of investments the utility has made in its power system and were recently designated as green bonds following an analysis by S&P Global Ratings. Green bonds are a designation for financing of investment projects with environmental benefits.
âThese early green bonds are another way we are working to achieve the triple bottom line of serving the people, planet and prosperity of California,â said Chris Foster, executive vice president and chief financial officer of PG&E Corporation. âThese bonds will reduce costs for our customers while funding projects that will help protect California’s forests from the impacts of extreme weather and our climate change, facilitate the delivery of clean energy, and protect our customers and the planet from harsh weather conditions. future climate risks.
In addition to the environmental benefits, funding critical forest fire safety work through these salvage obligations authorized by Assembly Bill 1054 will result in significant savings for customers due to the lower cost of securitization versus traditional financing of public services. The transaction is expected to result in savings of $ 450 million to customers on a net present value basis compared to traditional rate base financings.
Investments funded by these green bonds include electrical system upgrades and strengthening efforts found in Pacific Gas and Electric Company’s community forest fire safety program. These investments have been authorized by the California Public Utilities Commission as part of the utility’s 2020 general tariff case, as well as its forest fire mitigation plans.
In carrying out its analysis of the bond issue, S&P Global Ratings noted that the work of the utility would have environmental benefits by hardening the electrical system and preventing the ignition and spread of forest fires, thereby preserving health. California forests and now the current state of nature ecosystems.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians over a 70,000 square mile service area in northern and central California. For more information, visit http://www.pgecorp.com.
This press release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and the utility (together, “PG&E”), including, but not limited to, the issuance of green bonds and their environmental, financial and operational impacts. These statements are based on current expectations and assumptions, which management believes to be reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions will prove to be incorrect, factors that could cause actual results to differ materially from those contemplated by forward-looking statements include factors disclosed in PG&E Corporation and the utility’s joint annual report on Form 10 -K for the fiscal year ended December 31, 2020, their most recent quarterly report on Form 10-Q for the quarter ended September 30, 2021, and other reports filed with the Securities and Exchange Commission, which are available on the PG&E Corporation website at pgecorp.com and on the SEC’s website at www.sec.gov. PG&E Corporation and the utility do not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
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