The U.S. Department of Energy is set to provide a record $15 billion loan to California’s PG&E (NYSE:PCG) Corp, according to the Wall Street Journal.
This financial support is aimed at funding a series of projects designed to upgrade the electrical grid and refurbish hydroelectric facilities.
PG&E Corp, the parent company of Pacific Gas and Electric Company, is one of the largest utility providers in the United States, catering to approximately 16 million people in the northern and central regions of California.
The loan will be disbursed in cash installments over a span of several years, focusing on the modernization of the utility’s infrastructure.
This announcement comes in the wake of PG&E’s earlier statement this month, outlining their intention to generate $2.4 billion through a stock offering. The move by PG&E is part of a broader trend among U.S. utilities, which have been actively seeking additional funds through stock offerings and rate case requests.
These efforts are directed towards upgrading infrastructure to withstand the increasing frequency of extreme weather events, such as hurricanes and wildfires, as well as to meet the growing energy demands from industrial sectors, including data centers.
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