San Francisco Wants to Take Over Its Power Grid

San Francisco is trying to buy the electricity grid inside the city from Pacific Gas & Electric, the private company that currently provides power to residents. The city wants to run the grid itself, which is called 'public power.' On Tuesday, PG&E said for the first time how much it thinks that grid is worth — and the price was much higher than what San Francisco expected.

PG&E said its equipment and property in San Francisco is worth $13.9 billion. The city had estimated the cost at around $3.4 billion earlier this year. PG&E also says the city should pay an extra $8.6 billion to cover the costs of splitting the city's grid away from the rest of its system. That would push the total cost higher than San Francisco's entire yearly budget.

City leaders were not convinced by PG&E's numbers. San Francisco Board of Supervisors President Rafael Mandelman said someone is 'pretty far off,' and he thinks PG&E is making its assets sound more expensive on purpose. He pointed to several power outages in recent years as proof that PG&E has not been a reliable company. 'For now, the only tool in San Francisco's toolbox, the only thing we can pursue, is municipal ownership,' he said.

PG&E made its position very clear. The company said it 'will not sell its assets voluntarily.' CEO Patti Poppe said in a statement, 'A government takeover of our grid is not the right solution for our San Francisco customers.' The company is trying to stop the sale from happening at all.

This fight between San Francisco and PG&E is being watched closely by cities all over the country. Most Americans get their electricity from private companies, but about 2,000 communities are served by public power providers, including Los Angeles and Sacramento. If San Francisco succeeds, experts say it could inspire other large cities to try the same thing. Cities like San Diego, Milwaukee, and Ann Arbor are already thinking about making the switch.

One big concern is about wildfire costs. PG&E spends billions of dollars burying power lines and doing other work to prevent wildfires. Those costs are spread across all of PG&E's customers. In 2024, customers paid $9 billion in wildfire-related costs through their bills, and that total is expected to double by 2028.

If San Francisco leaves PG&E's system, those same wildfire costs would be split among fewer people, possibly raising bills for everyone who stays. Mark Toney, who leads a group that fights for fair electricity rates, wants the CPUC to make sure remaining customers don't end up paying more. He also warned that however the CPUC handles this case will set a pattern for future public power fights in California. 'I do think that what gets decided, how it gets decided, will set a template for any future plan to take part of the system to public power,' he said.

The head of the CPUC, John Reynolds, said he is very aware of this problem. He did not comment directly on the San Francisco case, but he raised an important question about fairness. Should people in areas with low wildfire risk be allowed to leave the system while others are stuck paying those big costs? The CPUC is expected to make a final decision in early 2027, and the outcome could shape the future of electricity in California for years to come.