San Francisco Moves to Break from PG&E for Power

State bill aims to streamline city's path to public utility ownership amid reliability concerns

Published on Feb. 24, 2026

San Francisco is escalating efforts to sever its longstanding relationship with Pacific Gas & Electric (PG&E) and transition to a publicly-owned utility system, following a series of widespread power outages that left hundreds of thousands of residents without electricity. State Senator Scott Wiener introduced Senate Bill 875 to remove legal obstacles that have historically hindered cities seeking to acquire their utility infrastructure from PG&E.

Why it matters

The push for a publicly-owned utility is fueled by comparisons to other Californian cities with municipal utilities that offer significantly lower rates, despite what San Francisco officials describe as inadequate infrastructure maintenance and service from PG&E. The prospect of lower costs is a key driver, as residents face consistently high electricity bills.

The details

SB 875 seeks to streamline the process for cities like San Francisco to pursue a public acquisition of their utility services. Currently, the process is complicated by legal challenges and lobbying efforts from PG&E. The bill aims to create a more equitable framework for potential takeovers, addressing what Wiener described as a need to 'unrig' the existing process. The legislation does not mandate a public takeover, but rather facilitates a fairer process should the city choose to pursue one through eminent domain.

  • State Senator Scott Wiener introduced Senate Bill 875 on Monday, February 23, 2026.
  • The bill is expected to be heard by the state senate committee around March – April of this year.
  • Prior to that, the San Francisco Board of Supervisors is scheduled to present a resolution supporting SB 875.

The players

Scott Wiener

A California state senator who introduced Senate Bill 875 to remove legal obstacles for cities seeking to acquire utility infrastructure from PG&E.

Pacific Gas & Electric (PG&E)

A private utility company that has provided electricity and natural gas services to San Francisco for decades, but has faced criticism over reliability issues and safety concerns.

San Francisco Board of Supervisors

The legislative body of the City and County of San Francisco, which is scheduled to present a resolution supporting SB 875.

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What’s next

The bill is expected to be heard by the state senate committee around March – April of this year. Prior to that, the San Francisco Board of Supervisors is scheduled to present a resolution supporting SB 875.

The takeaway

This effort to transition San Francisco to a publicly-owned utility system is driven by reliability issues, high electricity costs, and a desire for more local control over essential infrastructure. If successful, it could serve as a model for other municipalities grappling with similar challenges with investor-owned utilities.