PG&E’s Proposal to Return $400 Million to Customers from Net Gain on Sale of San Francisco Headquarters Approved by California Public Utilities Commission
Decision Paves the Way for Company’s Long-Term Cost-Saving Move to Oakland in 2022
The California Public Utilities Commission (CPUC) has approved the sale of the San Francisco headquarters complex of PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E” or the “company”) to a Hines company. The CPUC’s Final Decision approves PG&E’s request to return an estimated $400 million net gain to customers over a five-year period. This offset will help moderate future rate growth as the company continues to make significant safety and operational investments.
This $800 million transaction includes all of the buildings that encompass PG&E’s San Francisco headquarters campus, including 77 Beale Street and 245 Market Street. PG&E remains on track for a phased move into its new headquarters at 300 Lakeside Drive in Oakland, beginning in the first half of 2022. The move is part of PG&E’s broader commitment to implement changes for the long-term benefit of its customers and communities. PG&E expects the move to Oakland to result in substantially lower headquarters costs over the long term.
“PG&E is committed to delivering safe, reliable energy service to our customers while staying true to our pledge to keep their costs as low as possible. In addition to promoting long-term savings for PG&E, the sale of our San Francisco headquarters will help to offset future customer rates at a time when we’re making significant safety and operational investments. We have been actively listening to the needs of the Oakland community and are excited to play a part in the city’s vitality. It’s important to us to deepen our ties to our new hometown,” said PG&E Corporation CEO Patti Poppe.
The new Oakland headquarters uses space more efficiently for PG&E’s workforce and provides greater flexibility in its layout. Its design both promotes workplace health and safety and accommodates potential new working arrangements.
PG&E also plans to consolidate three other East Bay office locations—1850 Gateway Boulevard in Concord, 3401 Crow Canyon Road in San Ramon, and one of its Bishop Ranch leased properties, also in San Ramon—into the new Oakland headquarters. This overall plan simplifies PG&E’s Bay Area real estate footprint and further lowers its real estate costs for the benefit of customers.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is the parent company of Pacific Gas and Electric Company, a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pgecorp.com.
This news release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E, including but not limited to the sale of its San Francisco headquarters, the distribution of sale proceeds to customers, its move to Oakland, and its infrastructure investments in system hardening for wildfire mitigation. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in PG&E’s joint annual report on Form 10-K for the year ended December 31, 2020, its most recent joint quarterly report on Form 10-Q for the quarter ended June 30, 2021, and other reports filed with the Securities and Exchange Commission, which are available on PG&E Corporation’s website at pgecorp.com and on the SEC website at www.sec.gov. PG&E undertakes no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.
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