Innovative Partnership with Nonprofit Would Provide Significant Boost to Grid Reliability, Safety and Affordability

Oakland, Calif., and Boston – Under a proposed investment program with Pacific Gas and Electric Company (PG&E), nonprofit charitable organization Citizens Energy Corporation expects to provide more than $450 million to help PG&E customers in low- and moderate-income households pay their energy bills.

Submitted to the California Public Utilities Commission (CPUC) late last month, the updated proposal lays out Citizens’ plans to invest up to $1 billion for PG&E electric system upgrades. Citizens would then use a significant portion of its after-tax profits from the program to provide direct bill-paying assistance to PG&E customers in need. These charitable proceeds are estimated to total more than $450 million over a 35-year period.

The program is designed so that customers would pay no more for electric system work on the leased transmission assets than they would without the program.

A community-based organization in California’s Central Valley said the program would provide important benefits.

“We support innovative investments in the electric grid that would help California continue its efforts to transition energy sources for the transportation and housing sectors,” said Tom Knox, executive director of Valley Clean Air Now, a nonprofit charity focused on reducing air emissions in California’s San Joaquin Valley. “We also appreciate that this program would benefit disadvantaged households by providing direct assistance in paying their utility bills.”

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

After extensive engagement with consumer and community advocates and other stakeholders, PG&E and Citizens updated their proposal to include a direct bill-paying assistance program.

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.

“Our vision is a safe, reliable and affordable energy system that leaves no one behind,” Kennedy said. “Along with investing in updated infrastructure for a more resilient grid, Citizens sees an extraordinary opportunity to help address the affordability of electric service—a major challenge throughout California. This program with PG&E will provide much-needed electricity savings to families across the region and at the same time, help fund electric system upgrades that will enable California 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.

PG&E would use the proceeds to make the electric grid safer, more reliable, and ready 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 bills.

“Our proposed program with Citizens would support system upgrades while providing assistance to our customers to pay their bills,” said Jason Glickman, PG&E Corporation Executive Vice President, Engineering, Planning and Strategy. “Electric demand in California is growing. This program would help us meet that demand while continuing to keep customer bills stable over time.”

Program Details

PG&E would continue to own and maintain the relevant assets.

Citizens’ investment of up to $1 billion would enable Citizens to contribute more than $450 million of its net after-tax profits to direct bill-paying assistance for PG&E customers in need. The proceeds that Citizens has committed for direct bill-paying assistance would start at 50% of the after-tax profits from the first $200 million invested. It would increase to 90% of the after-tax profits from the final $200 million invested.

Pending regulatory approval from the CPUC and the Federal Energy Regulatory Commission (FERC), PG&E and Citizens expect to close on the first lease option in 2026. Up to four more leases would follow.

The CPUC and FERC have approved two similar programs between Citizens and San Diego Gas & Electric (SDG&E) to help finance transmission upgrades and fund clean energy projects for communities in need.

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

Citizens Energy Corporation is a Boston-based nonprofit founded in 1979 by former U.S. Congressman Joseph P. Kennedy II. Under his leadership as Chairman, Citizens Energy has compiled a 45-year history of channeling revenue from successful energy ventures in oil, natural gas, electricity trading, energy efficiency and conservation, transmission, wind power, solar arrays, energy storage and microgrids to programs that help the underprivileged.

Citizens Energy owns and operates the largest low-income, community-shared solar project in the country, located in California’s Imperial Valley, as well as the largest program of its kind in Massachusetts, in keeping with its goal to make the renewable energy revolution accessible for all. For more information, visit citizensenergy.com.

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