U.S. Department of Energy Loan to PG&E

The U.S. Department of Energy is set to provide a record $15 billion loan to California's PG&E (NYSE:PCG) Corp, according to the Wall Street Journal.

This financial support aims to fund projects designed to upgrade the electrical grid and refurbish hydroelectric facilities.

PG&E Corp, the parent company of Pacific Gas and Electric Company, is one of the largest utility providers in the United States, catering to approximately 16 million people in northern and central California.

The loan will be disbursed in cash installments over several years, focusing on the modernization of the utility's infrastructure.

This announcement follows PG&E's earlier statement this month, outlining their intention to generate $2.4 billion through a stock offering. This move is part of a broader trend among U.S. utilities that are actively seeking funds through stock offerings and rate case requests.

These efforts are directed toward upgrading infrastructure to withstand the increasing frequency of extreme weather events, such as hurricanes and wildfires, and to meet the growing energy demands from industrial sectors, including data centers.

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