Acquiring the land, rights and equipment needed for a public takeover of PGE will cost nearly a billion dollars more than San Francisco had previously offered to the utility, according to the city’s newly revised estimate submitted to state regulators. The new $3.4 billion valuation comes after the city had twice offered PGE $2.5 billion for the utility’s assets, starting in 2019. Both times, PGE officials dismissed the offers as too low. The utility has yet to make a counteroffer, however, maintaining a public takeover isn’t in the best interest of the utility or its customers. In a filing to the state Public Utilities Commission on Monday, San Francisco PUC head Dennis Herrera said the new value is part of the city’s “century-long goal of providing electric service throughout San Francisco.” Herrera cites “consistent problems with PGE’s service” as a factor in the city’s effort. In December, there were seven blackouts alone, city officials say, including one triggered by a circuit breaker fire in the Mission substation that left parts of the city without power for three days during peak holiday shopping season. California Apr 8 New report alleges California overpays to keep nuclear power plant running San Francisco Mar 31 Inside look at San Francisco's bid to split with PGE PGE Feb 23 New state legislation would allow SF, cities to break up with PGE According to Herrera, the $3.4 billion value is in line with an investment banking analysis that sets a value range for the utility of between $3.1 billion to $3.6 billion. The new value, Herrera says, is based on a final detailed accounting of PGE’s assets and property and includes the undisclosed bid to acquire PGE’s Martin substation that feeds most of the city’s power. Documents suggest consultants valued the facility at between $170 million and $370 million. The city’s two previous offers for PGE’s grid in the city didn’t include buying the facility in San Mateo County, near the Daly City border with San Francisco. Under the plan, the city would buy the station as well as pay separately to build a smaller PGE substation next door to the Martin facility to serve PGE customers outside San Francisco. The new value accounts for 67 miles of underground transmission lines in the city, as well as more than 1,000 miles of underground distribution lines and 480 miles of overhead distribution lines. The value includes 50,000 enclosed vaults and other enclosed structures, 38,000 power poles, 17,500 switches and other electrical devices, as well as communications and control centers, spare parts and system records. The cost of buying the land and property rights from PGE would be about $600 million. PGE – which has long cast doubt on the city’s ability to run its grid in San Francisco – said in a statement: “Our assets are not for sale, and a government takeover in the city would be extremely expensive and raise rates for San Franciscans for decades.” The company says regulators will require the city to pay for everything from wildfire mitigation, energy efficiency programs and subsidizing rates for low-income customers – and that will mean higher, not lower rates. The city’s bid, it says, “has grossly underestimated these costs.” The utility adds the city’s estimate for its assets and property “lists a value billions of dollars below fair market value.” The city price estimate, the utility says, doesn’t factor in all the various costs of separating from PGE’s grid. “PGE will thoroughly review CCSF’s filing and plans to submit its own testimony in October 2026, as the CPUC has directed,” the company said. ...read more read less