The Facts

San Francisco’s bid to buy PG&E’s local electric grid advanced September 22 when supervisors unanimously rejected challenges to its environmental review. Supervisor Matt Dorsey called PG&E a “bad faith actor” using the process to delay a takeover, reports Alyce McFadden at the San Francisco Chronicle.

The Context

The San Francisco Public Utilities Commission values the grid at about $3.4 billion, with state regulators still determining its worth. Customers would repay acquisition bonds through electricity bills.

The high cost of PG&E's assets isn't the only barrier to a City takeover; low City wages are another. City lineworkers earn $85.30 an hour, while PG&E pays around $92–$97 per hour, according to their advertised base wage rates, combined with its 25% local premium for San Francisco, before overtime and retention incentives. A full comparison would also need to account for benefits.

The GrowSF Take

The city would have to compete for experienced crews while paying acquisition debt and upgrading the grid. That deserves more scrutiny than promises of cheaper public power. Before approving a purchase, supervisors should demand evidence that customers would save money after accounting for competitive compensation, debt, and upgrades.

We're not here to say this is necessarily a bad idea (San Francisco runs a great water system and airport, after all), but we aren't yet convinced it's a responsible choice. We're waiting to see more information before taking a position.