PG&E Applies For ~$7B In Federal Loan To Reduce California Wildfire Risk: Report

PG&E Corporation PCG has reportedly applied for a $7 billion federal loan.

The loan will help PG&E fulfill its ambitious goals to reduce California wildfire risk by burying power lines and upgrading the electric grid, reported the WSJ, citing a company executive.

The company was invited to apply for funding from the Energy Department's Loan Programs Office, which finances critical energy projects tied to the shift away from fossil fuels, added the report. 

According to Chief Executive Patti Poppe, PG&E plans to utilize the loan to help fund the burial of 10,000 miles of power lines in high-risk fire areas. 

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"The entire grid has to be electrification-ready and EV-ready," Poppe stated. The Loan Programs Office "would be backing our ability to pay for it and allowing us to make these infrastructure investments at the lowest cost to customers," she added.

The report further noted loan office could take months to review PG&E's loan. The company is not guaranteed to obtain any funding or the total amount requested.

The company's capital-spending plan calls for $50 billion in investments between 2022 and 2026, with more investments planned for later years.

Price Action: PCG shares closed at $17.07 on Thursday.