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Loan supports PG&E's ( PCG ) climate resilience and grid upgrades

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Funds to refurbish hydroelectric infrastructure, expand

battery

storage

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DOE and PG&E ( PCG ) must meet conditions before finalizing loan

Dec 17 (Reuters) - The United States offered a

conditional loan of up to $15 billion to California-based

utility PG&E ( PCG ) to support climate resilience projects and

upgrade the electrical grid, the Department of Energy said on

Tuesday.

PG&E ( PCG ), a natural gas and electric utility, is the parent company

of Pacific Gas and Electric Company, one of the largest U.S.

utility providers serving about 16 million people across

northern and central California.

If the record loan is finalized by the U.S. Department of

Energy's Loan Programs Office, it will be used to fund projects

that refurbish PG&E's ( PCG ) hydroelectric infrastructure and power

lines and will be provided in cash installments over several

years. The loan would also go to expanding battery energy

storage and transmission.

The administration of President Joe Biden is rushing to push

out billions of dollars in financing from the LPO as the office

faces an uncertain future under

President-elect Donald Trump

, who takes office on Jan. 20.

Earlier this month, PG&E ( PCG ) said it planned to raise $2.4 billion

from investors via a stock offering.

The DOE and PG&E ( PCG ) must satisfy technical, legal,

environmental, and financial conditions before the U.S. enters

into definitive financing documents and funds the loan.

U.S. utilities have been making stock offerings and filing

rate case requests to fund their infrastructure upgrades as the

country's power grids face extreme weather conditions such as

hurricanes and wildfires, and surging demand from industrial

customers like data centers.

PG&E ( PCG ) did not immediately respond to Reuters' requests for

comment.