PG&E, KKR enter exclusive talks related to Pacific Generation transaction

Pacific Gas and Electric Company (PCG), PG&E, and KKR (KKR) announce they have entered exclusive talks on a strategic partnership related to its Pacific Generation transaction. As previously announced in September 2022, PG&E is seeking approval to transfer its non-nuclear power generation assets to a newly formed subsidiary, Pacific Generation, and to transfer a minority ownership in Pacific Generation. Under the proposed transactions, PG&E would remain the majority owner of Pacific Generation and the current workforce would continue to operate and maintain the generation facilities for the benefit of customers. “After thoroughly evaluating a full range of potential investors, we believe that a strategic partnership with KKR would be highly beneficial to our customers by supporting investment in generation and storage assets that are critical contributors to clean, reliable energy, and providing a path to lower rates,” said Carolyn Burke, Executive Vice President and Chief Financial Officer at PG&E. “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. With a strong strategic partner like KKR, we would be better positioned to help support cleaner energy generation, such as hydro and pumped storage, as well as other energy storage assets needed to balance California’s portfolio of intermittent renewable resources and mitigate wholesale market volatility.”