The U.S. Department of Energy (DOE) has announced a conditional loan guarantee of up to $15 billion to Pacific Gas & Electric Company (PG&E) under the Biden-Harris Administration's Investing in America agenda. The loan will support PG&E's Project Polaris, a portfolio of infrastructure initiatives aimed at modernizing California's energy grid and increasing reliability.

If finalized, the loan guarantee will enable PG&E to expand hydropower generation, battery storage capacity, and transmission upgrades through advanced technologies. It will also fund virtual power plants across Northern and Central California, contributing to improved energy reliability and reduced costs for PG&E's 16 million customers.

The loan is part of DOE's Energy Infrastructure Reinvestment (EIR) program, created under the Inflation Reduction Act. It offers regulated utilities access to low-interest financing, helping limit upward pressure on electricity costs. PG&E has committed to directing financial benefits to its customers and communities, with a focus on disadvantaged areas as identified by the Climate and Economic Justice Screening Tool.

PG&E will partner with the International Brotherhood of Electrical Workers (IBEW) Local 1245 to train and employ workers from underserved groups through its PowerPathway program. These investments are expected to support thousands of jobs during construction and ongoing operations.

This conditional commitment reflects DOE's rigorous vetting process for program eligibility, environmental review, and community benefits planning.