On January 17, 2025, the U.S. Department of Energy (DOE) finalized a $15 billion loan for Pacific Gas & Electric (PG&E) to expand hydropower generation and battery storage, upgrade transmission capacity, and enable virtual power plants.
The funds will help the utility upgrade its transmission lines, which have been blamed for causing wildfires. The outgoing Biden administration offered PG&E the conditional loan in December.
The loan will finance existing investment areas approved by the California Public Utilities Commission and California Independent System Operator. PG&E cited these projects as supporting federal and state climate goals.
PG&E concluded a $13.5 billion settlement after its equipment started deadly and destructive wildfires in Northern California, including the 2018 Paradise fire.
The company filed for bankruptcy in 2019 and reorganized in 2020. Critics called the loan a bailout.