WASHINGTON (dpa-AFX) - Pacific Gas and Electric Company (PCG) on Wednesday said a proposed government takeover of its electric distribution grid in San Francisco would cost $22.5 billion, significantly higher than the $3.4 billion estimated by the city in April.
In a filing with the California Public Utilities Commission, PG&E valued its electric and real estate assets in San Francisco at approximately $13.9 billion, compared with the city's valuation. The company also estimated $8.6 billion in business severance damages and physical separation costs.
PG&E said the takeover would require separating San Francisco's grid from its wider network, including building a replacement substation, establishing a new service center and reconfiguring power lines to maintain service for customers outside the city.
The company also said the city's valuation excluded more than 2,000 real estate interests, including easements and licenses, and undervalued its underground distribution system.
PG&E has invested $3 billion in San Francisco grid reliability upgrades over the past decade and plans to invest nearly $2 billion more over the next five years.
The California Public Utilities Commission is reviewing the valuation as part of the city's proposed takeover.
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