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

New legislation would allow the city to exit its 120-year relationship with the investor-owned utility and form a municipal utility instead.

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 under the utility's monopoly.

The details

The bill proposed would speed up the purchase process by making it easier for cities to show that it is in the public interest to convert to a municipal utility. It would also limit CPUC 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 at the CPUC in the future.

  • 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 the bill.

Lynsey Paulo

A spokeswoman for PG&E.

Severin Borenstein

The director of UC Berkeley's Energy Institute.

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 (latimes.com)

“San Francisco has dramatically underpriced the value of PG&E's electric system, suggesting that the assets in San Francisco are worth only about $2-$3 billion. Not only is that a lowball amount, but the California Public Utilities Commission (CPUC) has been clear that the City and County of San Francisco (CCSF) would have to pay far more than the value of the assets, which means a takeover will drive customers' rates up, not lower them.”

— Lynsey Paulo, Spokeswoman, PG&E (latimes.com)

“The track record is that these are long, costly, difficult processes that usually fail, although [Wiener's] legislation is attempting to make it less long and less costly and less difficult.”

— Severin Borenstein, Director, UC Berkeley Energy Institute (latimes.com)

What’s next

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 takeaway

This proposed legislation highlights the ongoing tensions between San Francisco and PG&E, the troubled utility that has faced numerous challenges in recent years. The city's efforts to form its own municipal utility underscore the desire for more local control and accountability over electricity service and costs.