Partnership to be the one of the largest privately funded utility bill assistance programs in the nation

Oakland, Calif., and Boston – In a decision issued by the California Public Utilities Commission (CPUC) on Thursday, regulators have approved an investment program between Pacific Gas and Electric Company (PG&E) and nonprofit Citizens Energy Corporation that, if fully implemented, is expected to provide more than $450 million to help PG&E customers in low- and moderate-income households pay their energy bills.

The program enables Citizens to invest up to $1 billion in PG&E high-voltage electric system upgrades, with a significant portion of its after-tax profits directed toward bill-paying assistance for PG&E customers in need. Over a 35-year period, Citizens estimates it will provide more than $450 million in direct bill-paying assistance, helping approximately 54,000 households annually once fully implemented. On average, participating households are expected to receive about $300 per year in support.

This would represent one of the largest privately funded utility bill assistance programs in the nation. The program does not rely on taxpayer funding and is designed so that customers pay no more for electric system work on the Citizens-funded transmission assets than they would if PG&E funded them, reflecting Citizens’ pioneered model of using investment returns to fund charitable and community benefits.

A community-based organization in PG&E’s service area said the program would deliver meaningful benefits for families across the region.

“The NDC is glad to see the California Public Utilities Commission move this innovative project forward,” said Faith Bautista, President and CEO of the NDC. “This is a real step forward for both affordability and grid reliability across California. By combining critical grid investment with direct bill assistance for low- and moderate-income households, the program helps make sure the clean energy transition works for everyone. We support efforts that strengthen the grid while also providing real relief to families dealing with rising energy costs.”

PG&E and Citizens first filed with the CPUC for approval of the program in March 2024.

After extensive engagement with consumer and community advocates and other stakeholders in a public and transparent regulatory process, PG&E and Citizens included a direct bill-paying assistance program for added affordability in the program.

“Delivering dependable service and easing the financial burden for communities that keep California’s economy running is essential,” said Michelle Engel-Silva, CEO of Proteus Inc. “Strong partnerships like this show that it’s possible to modernize our energy infrastructure while still putting working families first.”

Citizens President Joseph P. Kennedy III said the program will serve the nonprofit’s mission to support projects and programs that increase grid strength and decrease electricity costs.

“Citizens Energy believes in building an energy system that is safe, reliable, and affordable—and that works for everyone,” Kennedy said. “Alongside investments in infrastructure to support a more resilient grid, Citizens sees a real opportunity to address the affordability of electric service—a major challenge across California. This program with PG&E will deliver meaningful electricity savings to families across the region while also helping fund critical grid upgrades that support California’s efforts to meet its bold climate goals.”

Since 1979, Citizens has helped low-income families and disadvantaged communities meet their basic needs, including utility bills. It has provided over $600 million in charitable benefits since its founding, including administering winter heating grants to over 300 homeless shelters in 17 states.

“We are grateful to the California Public Utilities Commission and the CAISO Governing Board for their respective approvals of this program,” said Pete Smith, CEO of Citizens Energy. “We also appreciate Governor Newsom and his administration, along with the many elected officials and community leaders who helped shape this effort. We are especially thankful to the Commissioners and their staff for their foresight in approving the program and their partnership in refining it. We look forward to continuing to work closely with the Commission to ensure the promise of this investment program and that the much-needed bill-paying assistance reaches the families who need it most efficiently and effectively.”

PG&E would use the proceeds from Citizens’ investment to continue to improve grid safety and reliability, and to serve increasing demand for electricity, including from electric vehicles and electric heating appliances. The program reflects PG&E’s commitment to tap nontraditional funding to help stabilize customer bills.

“This agreement puts customers first,” said Jason Glickman, PG&E Corporation Executive Vice President, Strategy and Growth. “If we receive all additional regulatory approvals and move forward with the leases, it will deliver meaningful bill relief for customers in need while creating a new source of funding to support critical investments in safety, reliability and decarbonization. In short, our program with Citizens is designed to help move California’s energy transition forward with a practical approach that helps ensure no communities are left behind. We’re pleased the commission recognized that this agreement has the potential to deliver real value for customers.”

The Federal Energy Regulatory Commission (FERC) has previously provided Citizens regulatory approval of its rate structure, and would need to approve several additional Federal Power Act rate filings to allow the investment program to move forward. Today’s approval from the CPUC authorized PG&E and Citizens to file separate Tier 3 Advice Letters for each of up to five potential investment tranches.  Following approval of the necessary FERC filings and each such advice letter, Citizens could begin to make the investments and fund the bill paying assistance with its profits.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.

About Citizens Energy Corporation

Founded in 1979 by former U.S. Representative Joseph P. Kennedy II, Citizens Energy Corporation is a nonprofit organization that develops for-profit energy ventures to fund charitable assistance programs for low-income households and traditionally marginalized communities. Since its founding, Citizens has provided over $600 million in support to those in need.

With a mission to make life’s basic needs more affordable, Citizens delivers innovative solutions that lower energy bills, strengthen and modernize critical infrastructure, and expand access to clean energy. The organization owns and operates America’s largest low-income community solar project in California’s Imperial Valley and is Massachusetts’ largest low-income community solar developer and operator. Citizens is pioneering approaches in transmission and distribution financing that build resilient, affordable energy systems while directly supporting communities most affected by energy costs.

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