San Francisco Moves to Take Over PG&E Assets and Establish Municipal Power

City leaders push to acquire PG&E's electric distribution and transmission infrastructure to provide clean, affordable power

Published on Feb. 8, 2026

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The San Francisco Board of Supervisors is set to vote on a resolution that reaffirms the city's efforts to acquire PG&E's electric assets serving San Francisco. The move comes amid ongoing concerns over PG&E's safety record, mismanagement, and prioritization of profits over public welfare. If successful, the city aims to establish a municipal power system that would generate significant revenue to fund critical public services.

Why it matters

San Francisco has long sought to provide its own electric service, with the city already supplying over 75% of the electricity consumed through its CleanPowerSF and Hetch Hetchy Power utilities. Acquiring PG&E's local infrastructure would allow the city to fully control its power supply, improve reliability, and generate substantial revenue that could be reinvested into the community.

The details

The resolution cites PG&E's history of safety failures, including the 2012 diversion of safety funds to executive compensation, as well as the utility's ongoing "crime spree" that has caused widespread wildfires and destruction across California. The city believes it can operate the electric grid more efficiently and profitably than PG&E, potentially generating over $300 million in annual revenue after costs. To acquire the assets, the city is prepared to file an eminent domain action and use revenue bonds, rather than wait for the state's Public Utilities Commission to act.

  • In 2019, former Mayor London Breed called on the Public Utilities Commission to analyze options for the city to acquire PG&E's local assets.
  • The Board of Supervisors will vote on the resolution to reaffirm the city's efforts on Tuesday, February 10, 2026.

The players

PG&E

An investor-owned electric and natural gas utility that has faced widespread criticism for its safety record and mismanagement, leading the city to pursue acquiring its local infrastructure.

Mayor Daniel Lurie

The current mayor of San Francisco who has not yet taken a public stance on the city's municipal power efforts.

Supervisor Connie Chan

A member of the San Francisco Board of Supervisors who has expressed skepticism about a proposed $40 million tax giveaway to a private luxury hotel company.

Supervisor Alan Wong

The supervisor representing the Sunset district, where the recent PG&E blackouts caused the most damage.

Governor Gavin Newsom

The California governor whose administration is reportedly slow-walking the process of establishing the value of PG&E's grid in San Francisco, which the city needs to move forward with its acquisition plans.

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What they’re saying

“While on probation, PG&E has gone on a crime spree and will emerge from probation as a continuing menace to California”

— Federal Judge William Alsup (48hills.org)

What’s next

The Board of Supervisors will vote on Tuesday, February 10, 2026 to reaffirm the city's efforts to acquire PG&E's electric distribution and transmission infrastructure assets serving San Francisco.

The takeaway

San Francisco's push to establish a municipal power system highlights the city's long-standing desire for greater control over its energy supply and the opportunity to generate significant revenue that could fund critical public services. The move also reflects growing frustration with PG&E's poor safety record and prioritization of profits over public welfare.