Senator Wiener Introduces Bill to Streamline PG&E Breakup Process

Legislation aims to reform CPUC review and prevent delays by PG&E in local governments forming public utilities

Published on Feb. 23, 2026

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Senator Scott Wiener (D-San Francisco) has introduced SB 875, a bill to reform the process for local governments to break away from private utility PG&E and form their own publicly owned utilities. The bill aims to address delays exploited by PG&E at the California Public Utilities Commission (CPUC) that have stalled efforts by cities like San Francisco and the South San Joaquin Irrigation District to exit PG&E's service area. SB 875 would reverse changes made in 1992 that raised the burden on public entities, limit CPUC review, and establish enforceable timelines to prevent further delays.

Why it matters

PG&E's monopoly has led to higher electricity rates and frequent blackouts for customers in San Francisco and across California. Public utilities in cities like Sacramento and Palo Alto charge around 50% less for electricity and provide more reliable service. SB 875 aims to unrig the regulatory process that has allowed PG&E to block cities from breaking away and forming their own public utilities, which could deliver more affordable and reliable power to residents.

The details

SB 875 would reform the CPUC review process for local governments seeking to acquire PG&E's utility infrastructure and form public utilities. The bill would reverse changes made in 1992 that raised the burden on public entities, limit CPUC review to only determining if the transaction is fair to affected utility employees, and establish enforceable timelines to prevent PG&E from exploiting delays. This is intended to address the years-long delays cities like San Francisco and the South San Joaquin Irrigation District have faced in their efforts to exit PG&E's service area.

  • In 2019, San Francisco began trying to exit PG&E.
  • In July 2021, San Francisco filed a valuation proceeding with the CPUC, but PG&E has drawn out the process to over 4.5 years.
  • On December 20, 2025, over 130,000 PG&E customers in San Francisco lost power, with some not seeing it restored for 3 days.
  • As of January 7, 2026, San Franciscans had experienced 6 power outages in less than a month.

The players

Senator Scott Wiener

A Democratic state senator representing San Francisco who introduced SB 875 to reform the CPUC process for local governments to exit PG&E.

PG&E

The private, investor-owned utility that has a monopoly in much of California and has exploited regulatory processes to block cities from forming their own public utilities.

California Public Utilities Commission (CPUC)

The state regulatory agency that oversees utility services in California, and whose review process PG&E has used to delay cities' efforts to exit its service area.

South San Joaquin Irrigation District (SSJID)

A local government entity that began the process of pursuing municipalization in 2014 but has made little progress due to delays exploited by PG&E.

Dennis Herrera

The General Manager of the San Francisco Public Utility Commission, which has been able to offer lower electricity rates than PG&E by prioritizing local families and businesses over shareholder profits.

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What they’re saying

“Under PG&E's monopoly, San Franciscans are paying more for worse service. We should get a choice to leave this broken relationship, and SB 875 is a critical step to get there.”

— Senator Scott Wiener (yubanet.com)

“For decades, utilities like PG&E run by big investors have rigged our regulatory system to block cities' attempts to break up with them and form public utilities. They are afraid that cities and municipalities can do what they do cheaper and better.”

— Senator Scott Wiener (yubanet.com)

“we prioritize local families and businesses over shareholder profits.”

— Dennis Herrera, SFPUC General Manager (yubanet.com)

What’s next

SB 875 will now proceed through the California legislative process, with the goal of being signed into law to reform the CPUC review and approval process for local governments seeking to exit PG&E and form their own public utilities.

The takeaway

This legislation aims to address the longstanding issue of private utility monopolies like PG&E exploiting regulatory processes to block local governments from breaking away and forming more affordable and reliable public power options for their residents. If passed, SB 875 could pave the way for cities across California to gain more control over their energy future.