The San Francisco Board of Supervisors on Sept. 22 unanimously affirmed the final Environmental Impact Report for the city’s proposed acquisition of PG&E’s local electric grid, clearing a required step as San Francisco explores expanding public power.

Previously, the Planning Commission had unanimously certified the report in July after an extensive environmental review and public process. Required under the California Environmental Quality Act, the report examines the environmental effects of acquiring PG&E’s assets and the work needed to separate the systems. The environmental review must be completed before the City can approve an acquisition.

“Today’s decision moves San Francisco forward as we explore expanding public power,” said SFPUC General Manager Dennis Herrera. “San Francisco has been a public power provider for more than a century, and we now provide more than 75% of the electricity used in the City through Hetch Hetchy Power and CleanPowerSF. What we don’t own is the local electric grid. Owning it would give us the ability to invest directly in San Francisco’s power infrastructure, with a focus on reliability and affordability for our customers.”

If policymakers decide to proceed with the purchase, the SFPUC would need to physically separate the portion of PG&E’s existing electric system that serves San Francisco. 

This work, generally along the San Francisco-San Mateo County border, would create two systems that could operate safely, reliably, and independently. The SFPUC would provide electricity service to customers in San Francisco, while PG&E would continue serving its customers outside the city.

Next Steps

The City can now move into the next phase of work, including proceedings before the California Public Utilities Commission to establish a value for the electric assets the City seeks to purchase, evaluate a potential transaction, and plan for a transition to full public power in San Francisco.

"San Francisco’s effort to expand public power builds on more than 100 years of providing publicly owned electricity through the SFPUC, which operates two clean energy programs," a news release noted.

 Hetch Hetchy Power generates greenhouse gas-free electricity and owns and operates 160 miles of clean energy transmission lines from Yosemite to the Bay Area. It serves public facilities such as the airport, libraries, and the Muni transit system, as well as a growing number of residential and commercial customers.

Hetch Hetchy Power customers pay the lowest electricity rates in San Francisco. In 2025 alone, Hetch Hetchy Power saved its customers more than $75 million compared with what they would have paid PG&E.

Through CleanPowerSF, the SFPUC’s community choice aggregation program, the agency purchases clean electricity for homes and businesses, while PG&E continues to deliver that power.

“PG&E is a for-profit utility. That means added costs, which are passed on to ratepayers,” said Michael Hyams, SFPUC Assistant General Manager for Power. “The SFPUC is a not-for-profit publicly owned utility. San Francisco doesn’t pay shareholder dividends, corporate taxes, or executive bonuses. We also have access to lower-cost financing because of our strong credit rating. All those savings reduce ratepayer costs, which means lower customer bills.”

On average, public power utilities across the United States offer more affordable rates than investor-owned utilities.

Fair Market Value

Separately, San Francisco has asked the California Public Utilities Commission, the state utility regulator, to determine the fair market value of PG&E’s electric assets that serve the city.
In April 2026, San Francisco provided updated expert testimony valuing those assets at about $3.4 billion, based on new information, including additional asset details identified by PG&E and updated cost estimates. PG&E has so far refused to say what it thinks those assets are worth, but the CPUC has directed the company to provide its testimony on October 20.

Funding to acquire PG&E’s grid would not come from the City’s budget or taxes. It would come from revenue bonds repaid over time through electric rates. 

In June 2018, San Francisco voters approved Proposition A with 77% of the vote. The measure amended the City Charter to authorize the SFPUC to issue revenue bonds to build or improve the City’s clean power facilities, with approval by two-thirds of the Board of Supervisors.

Revenue bonds are the financing mechanism being contemplated for this acquisition. It is money the City would only get if it acquires PG&E’s grid that serves San Francisco, and the money couldn’t be used for any other purpose. Acquiring PG&E’s grid would have no impact on other City funding priorities, like public safety or affordable housing.