PG&E Issues Its First ‘Green Bonds’ to Help Strengthen Electric Grid, Protect California Forests, Reduce Customer Costs
November 16 2021 - 6:15PM
Business Wire
Recent $860 Million Issuance Demonstrates
Company’s Commitment to Triple Bottom Line
Building upon its longstanding commitment to sustainability and
environmental stewardship, PG&E Recovery Funding, LLC, a
subsidiary of Pacific Gas and Electric Company (the Utility),
recently finalized an $860 million green bond issuance to finance
electric work that will have significant environmental benefits,
while also keeping customers and hometowns safe.
PG&E Recovery Funding issued the bonds to finance a variety
of investments that the Utility has made in its electric system and
were recently designated as green bonds following an analysis by
S&P Global Ratings. Green bonds are a designation for capital
project financings with environmental benefits.
“These first green bonds are another way we are working to
deliver on the triple bottom line of serving people, the planet and
California’s prosperity,” said Chris Foster, PG&E Corporation’s
Executive Vice President and Chief Financial Officer. “These bonds
will reduce costs for our customers while financing projects that
will help protect California’s forests against the impacts of
extreme weather and our changing climate, facilitate the
distribution of clean energy, and protect our customers and planet
from future climate-driven risks.”
In addition to the environmental benefits, financing critical
wildfire safety work through these recovery bonds authorized by
Assembly Bill 1054 will result in significant customer savings due
to the lower cost of securitization when compared to traditional
utility financing. The transaction is expected to result in $450
million of customer savings on a net present value basis relative
to traditional rate base financings.
The investments financed by these green bonds include electric
system improvements and hardening efforts found within Pacific Gas
and Electric Company’s Community Wildfire Safety Program. These
investments have been authorized by the California Public Utilities
Commission through the utility’s 2020 General Rate Case, as well as
its Wildfire Mitigation Plans.
In conducting its analysis of the bond issuance, S&P Global
Ratings noted that the utility’s work would have environmental
benefits by hardening the electric system and preventing the
ignition and spread of wildfires, therefore preserving the health
of California’s forests, and maintaining the existing state of
natural ecosystems.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company
headquartered in San Francisco. It is the parent company of Pacific
Gas and Electric Company, an energy company that serves 16 million
Californians across a 70,000-square-mile service area in Northern
and Central California. For more information, visit
http://www.pgecorp.com.
Forward-Looking Statements
This news release contains forward-looking statements that are
not historical facts, including statements about the beliefs,
expectations, estimates, future plans and strategies of PG&E
Corporation and the Utility (together, “PG&E”), including but
not limited to the issuance of green bonds and their environmental,
financial and operational impacts. These statements are based on
current expectations and assumptions, which management believes are
reasonable, and on information currently available to management,
but are necessarily subject to various risks and uncertainties. In
addition to the risk that these assumptions prove to be inaccurate,
factors that could cause actual results to differ materially from
those contemplated by the forward-looking statements include
factors disclosed in PG&E Corporation and the Utility's joint
annual report on Form 10-K for the year ended December 31, 2020,
their most recent quarterly report on Form 10-Q for the quarter
ended September 30, 2021, and other reports filed with the
Securities and Exchange Commission, which are available on PG&E
Corporation's website at pgecorp.com and on the SEC website at
www.sec.gov. PG&E Corporation and the Utility undertake no
obligation to publicly update or revise any forward-looking
statements, whether due to new information, future events or
otherwise, except to the extent required by law.
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Investor Relations Contact: 415.972.7080 | Media Inquiries
Contact: 415.973.5930 | www.pgecorp.com
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