San Francisco Lawmakers Announce Plan to Break Up with PG&E

Senate Bill 875 would enable San Francisco to finalize purchase of Pacific Gas & Electric assets so it can form a publicly owned utility.

Published on Feb. 23, 2026

Got story updates? Submit your updates here. ›

Bay Area lawmakers on Monday announced new legislation that would allow San Francisco to exit its 120-year relationship with Pacific Gas & Electric, the investor-owned utility that serves about 16 million people across Northern and Central California. Senate Bill 875 would enable the city and county of San Francisco to finalize purchase of PG&E assets so that it can form a municipal utility in the area instead.

Why it matters

PG&E has long faced criticism over its aging infrastructure and wildfire risk, including deadly blazes in 2017 and 2018 that were linked to faulty electrical equipment. San Francisco has been trying to exit its relationship with PG&E for years, citing high electricity rates and poor service, and this bill would speed up the purchase process.

The details

Senate Bill 875 would make it easier for cities to show that it is in the public interest to convert to a municipal utility, and would limit California Public Utilities Commission review to determining whether the transaction is fair and reasonable for affected public utility employees. The bill would also establish enforceable timelines to prevent PG&E from causing excessive delays.

  • Senate Bill 875 was announced on Monday, February 23, 2026.
  • The bill is expected to go into print on Monday night and will head to the Senate Energy Committee for review sometime in the spring.

The players

Scott Wiener

A California state senator representing San Francisco.

Pacific Gas & Electric (PG&E)

The largest investor-owned utility in California and one of the largest in the nation, serving about 16 million people across Northern and Central California.

San Francisco Board of Supervisors

The legislative body of the City and County of San Francisco that will be drafting a resolution to support Senate Bill 875.

Severin Borenstein

The director of UC Berkeley's Energy Institute, who commented on the potential challenges and tradeoffs of San Francisco exiting its relationship with PG&E.

Rafael Mandelman

The president of the San Francisco Board of Supervisors, who said it is reasonable for San Francisco to be looking at alternatives to PG&E.

Got photos? Submit your photos here. ›

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.”

— Scott Wiener, California State Senator (dnyuz.com)

“Government takeovers of parts of our grid would not make customer energy bills less expensive.”

— Lynsey Paulo, Spokeswoman, Pacific Gas & Electric (dnyuz.com)

“It has been well more than a decade that PG&E has struggled and failed to provide power safely to its customers, and in San Francisco, we have seen that. And it is reasonable for San Francisco and other municipalities to be looking at alternatives to provide the power that our businesses and our residents rely on.”

— Rafael Mandelman, President, San Francisco Board of Supervisors (dnyuz.com)

What’s next

Senate Bill 875 is expected to go into print on Monday night and will head to the Senate Energy Committee for review sometime in the spring.

The takeaway

This legislation highlights the growing frustration with PG&E's performance and the desire of San Francisco to take control of its energy future by forming a municipal utility. However, the process of divorcing from PG&E is likely to be long, costly, and difficult, as evidenced by past efforts in other California cities.