California utility PG&E has announced a $73-billion capital expenditure plan over the next five years, with a focus on upgrading infrastructure to support growing demand for electricity from data centers. The company’s chief executive, Patricia Poppe, stated that the plan aims to reduce rates for customers while improving wildfire mitigation and grid management.
The plan includes investments in distribution planning tools, underground power lines, and wildfire safety system upgrades. PG&E will also continue to invest in cleaner energy resources, including projects like the Calistoga Resiliency Center, a hybrid microgrid project in California.
The company’s efforts come after a series of costly wildfires in 2017 and 2018, which led to its bankruptcy filing in 2019. PG&E reorganized and exited bankruptcy in July 2020, agreeing to participate in a state-run fund to cover wildfire costs.
State lawmakers recently passed Senate Bill 254, which reforms the wildfire liability program and funding framework for investor-owned electric utilities. The bill includes creation of a wildfire fund continuation account and requires utilities to issue new debt for fire mitigation.
PG&E will contribute $144 million annually to the fund beginning in 2029, a 25% reduction from its current contribution. The company’s load growth projections remain at 1-3% over the next five years, with a focus on enabling rate-reducing load growth and driving the state’s clean energy goals.
The plan also includes upgrades to substations and CAISO-approved transmission projects, with a big project in Oakland awarded by California Independent System Operator. PG&E’s CEO emphasized that the company is prioritizing customer needs and system benefits over capital from regulatory bodies.
Overall, PG&E’s $73-billion 5-year plan aims to deliver rate reductions, improved wildfire mitigation, and robust grid management for customers and investors alike.
Source: https://www.powermag.com/pge-will-upgrade-infrastructure-as-part-of-5-year-73-billion-investment-plan