April 30 (Reuters) - PG&E ( PCG ) said on Tuesday it had

entered into exclusive negotiations to sell a minority interest

in Pacific Generation to KKR & Co's ( KKR ) unit, as the utility

firm seeks funding to improve its energy grid.

PG&E ( PCG ) has been blamed for sparking numerous wildfires,

including some of California's most deadly, and has been making

investments to improve the reliability of its power grid.

"We believe an investment from KKR would immediately enhance

our financial position as we continue our pursuit of a clean

energy future," CFO Carolyn Burke said.

The Oakland, California-based company had moved to separate

its non-nuclear generation assets in 2022 into a standalone unit

called Pacific Generation, which is estimated to be worth $3.5

billion and had been seeking regulatory approval to sell a stake

of up to 49.9% in the unit.

The utility firm said under proposed transaction, PG&E ( PCG ) would

remain a majority owner and operator of Pacific Generation.

(Reporting by Tanay Dhumal and Deborah Sophia in Bengaluru;

Editing by Anil D'Silva)