San Francisco supervisors unanimously rejected PG&E's attempt to overturn an environmental impact report tied to the city's public-power bid, and one supervisor did not mince words about why. During a hearing Tuesday, board members blasted PG&E over its handling of the city's yearslong effort to buy the local electrical grid, with one calling the utility a “bad faith actor.”
The vote, confirmed by the San Francisco Chronicle, upheld the Planning Commission's certification of the environmental review, which assesses the potential consequences of construction required for San Francisco to purchase PG&E's local equipment. Supervisor Matt Dorsey accused PG&E of leaning on California's environmental review process simply to delay the city's takeover bid, according to the same report. PG&E and a utility-workers union had argued the environmental document underwent significant changes during its approval process, and Rick Franco said it included unsupported conclusions, per the Chronicle's account of the hearing.
Supervisors rejected those arguments for reevaluating the report, the Chronicle noted, while a PG&E spokesperson declined to comment on the hearing's outcome. Separately, according to Bay City News, the Board's rejection Tuesday of PG&E's appeal specifically challenged the Planning Commission's July certification of the final environmental review, covering the acquisition of PG&E's local electric assets.
Seven Years and Counting
San Francisco has tried to buy the city's electrical grid for roughly seven years, per the Chronicle. The effort traces back to 2019, when San Francisco made an initial $2.5 billion offer to buy PG&E's local electric infrastructure during the utility's bankruptcy proceedings — an offer PG&E rejected as below market value, according to The Frisc.
The city has since raised its offer substantially. In April, San Francisco submitted an updated $3.4 billion valuation to the California Public Utilities Commission, which is now determining the price of PG&E's assets in the city and directed San Francisco to submit its valuation and PG&E to file its response by October 20, 2026, as reported by KQED. Even if that process resolves in the city's favor, San Francisco could take years to successfully take over the local grid, and PG&E could still challenge the takeover attempt in court, per the Chronicle.
December's Blackout Still Looms Large
Supervisors reiterated their support for the takeover after a December blackout caused by a PG&E substation fire, the Chronicle reported. That fire struck PG&E's Mission Substation in SoMa on December 20, 2025, leaving roughly 137,000 customers without power for up to three days and causing serious disruption, according to the San Francisco Standard.
City leaders argue a publicly owned grid would mean more reliable service and lower costs for consumers, per the Chronicle. The San Francisco Public Utilities Commission already generates and supplies electricity to roughly 75% of the city through its Hetch Hetchy Power and CleanPowerSF programs, serving more than 385,000 customers — but PG&E still holds monopoly ownership over the physical distribution grid, according to the San Francisco Public Utilities Commission. That imbalance, city officials say, is central to why they want full control of the wires themselves, not just the power flowing through them.
A Federal Mandate Dating Back to 1913
The push for public power is not a new idea born out of last year's outages — it is rooted in a 113-year-old federal law. Under Section 6 of the Raker Act of 1913, which allowed San Francisco to build the O'Shaughnessy Dam in Yosemite National Park, Congress barred the city from selling or transferring Hetch Hetchy-generated hydroelectric power to any private corporation like PG&E, according to FoundSF.
San Francisco ran out of funds before its municipal lines reached the city and made an arrangement involving PG&E's Newark substation, per FoundSF. San Francisco is now pursuing a full buyout.
The Financial Debate
The financial friction between the city and PG&E extends beyond the grid purchase itself. Electricity costs are also part of the public-power debate, per KTVU.
Not Everyone Is On Board
Not all voices at Tuesday's hearing supported the takeover. Marie Hurabiell urged San Francisco leaders to abandon the public-power effort altogether, arguing it will leave San Franciscans responsible for massive costs, per the Chronicle. That warning lands as the city has not yet determined the actual cost of buying PG&E's equipment, and still must navigate further legal and political hurdles before any purchase can happen.
Ron Flynn said approval of the environmental review marked an important project milestone, the Chronicle reported, and Dennis Herrera said the decision moves San Francisco forward as it explores expanding public power. The San Francisco Public Utilities Commission plans to finance a potential PG&E equipment acquisition with revenue bonds that would leverage future customer payments, according to the Chronicle's reporting.
Even with Tuesday's vote behind it, San Francisco still must complete a separate environmental impact report covering physical changes to a Daly City substation and distribution lines. That review process has included an unusual wrinkle: potential impacts to Crotch's bumblebee, an endangered species rarely seen in the Bay Area, per the Chronicle. It is one more item on a long list the city must clear before it can call the grid its own.
