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PG&E has warned customers of delays connecting to its grid as it plans to cut $2 billion in grid investment, according to Canary Media. The delays may affect more than 60 renewable and storage projects, but it is not yet clear which projects will be delayed or whether the investment reductions will derail California’s clean-energy goals.
PG&E plans to cut $2 billion in grid investment and has warned roughly 25,000 customers to expect delays getting connected, according to Canary Media. The utility’s letters describe possible delays ranging from months for some developments to 2027 or later for certain public works, with more than 60 renewable-energy and storage projects potentially affected.
A PG&E spokesperson said the affected clean-energy projects are scheduled to come online by 2030 and could add at least 15 gigawatts of capacity. That figure describes the potential combined capacity of the projects, not how much generation has already been delayed or lost. The report does not identify every project or specify how many have received firm revised connection dates.
The reported connection delays vary by customer and project type. Housing developments and office buildings could face delays of one to six months, while city and county transportation and public works projects may wait until 2027 and beyond. PG&E’s letters warned customers about delays; the source does not establish that every customer in the affected group will experience the same schedule.
The stakes extend beyond developers. At an Oct. 28 California Assembly Utilities and Energy Committee hearing, Jan Smutny-Jones, CEO of the Independent Energy Producers Association, said connection delays could harm the financial prospects of solar projects. He also warned that missed construction schedules could put federal tax credits at risk under deadlines described in the source report. These are risks raised by industry representatives, not confirmed outcomes for particular projects.
Grid Delays Could Squeeze Clean Energy
California needs new generation and storage to meet its clean-energy plans, and those projects rely on timely grid connections to deliver electricity. If projects with planned online dates by 2030 are delayed, developers could face higher costs, financing problems or missed deadlines. The actual effects will depend on which connections are delayed and how long the delays last.
Smutny-Jones said the delays could also threaten the state’s goal of adding 6 gigawatts of clean energy and storage by 2032. He warned that California might have to postpone retirement of more than 3 gigawatts of aging coastal gas plants if replacement resources are not ready. That is a possible consequence he raised at the hearing, not a decision the state has made.
For customers, the issue also involves the cost and reliability of electricity. PG&E Vice President and Treasurer Mari Becker argued that wildfire-related financial uncertainty can weaken the company’s credit, raise the cost of capital and put upward pressure on bills. The company’s position is that this financial pressure constrains investment; the available reporting does not establish how much of the $2 billion cut is directly attributable to wildfire exposure.
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Wildfire Liability and Utility Investment
The dispute comes amid California’s unresolved debate over utility wildfire liability. Canary Media reported that outgoing Gov. Gavin Newsom did not reach a deal with lawmakers by the end of the legislative session to protect utilities from potentially severe financial liability for fires sparked by power lines. Under California’s inverse condemnation doctrine, utilities can be held liable for damage caused by their equipment even when negligence has not been established, as described in the report.
PG&E has argued that wildfire exposure affects its ability to borrow and invest. The broader policy challenge is balancing utility finances and customer costs against accountability for fires. PG&E was found guilty of involuntary manslaughter in 2020 for causing the Camp Fire, a case that underscores why calls to limit liability remain contested.
At the Oct. 28 committee hearing, industry and public-sector representatives discussed possible ways to address the connection bottleneck. American Clean Power–California Executive Director Alex Jackson said lawmakers should resume negotiations on wildfire policy but also prepare alternatives. Suggestions included using competitive transmission developers for projects on PG&E’s delayed list and allowing renewable and storage developers to build needed grid connections that could later be transferred.
““Wildfire financial uncertainty leads to weaker credit, weaker credit leads to more expensive capital, and more expensive capital puts upward pressure on customer bills — and all of this constrains the investments that California needs.””
— Mari Becker, PG&E’s vice president and treasurer
Project Schedules Remain Unsettled
The full scope and timing of delays remain unclear. The source report does not provide a project-by-project list, identify which of the more than 60 renewable and storage projects have been delayed, or confirm how many will miss their planned online dates. It also does not establish whether PG&E’s $2 billion investment reduction is the sole cause of the connection delays.
It remains uncertain whether lawmakers will revisit wildfire liability reform, whether alternative transmission arrangements can be put in place quickly enough, or whether the state’s clean-energy and gas-plant retirement targets will change. The possibility of lost tax credits and postponed plant retirements has been raised by industry representatives, but neither outcome is confirmed.
Lawmakers Weigh Grid Alternatives
The next steps depend on state lawmakers, PG&E and project developers. Jackson said the legislature should return to negotiations over wildfire policy while pursuing a backup plan. Assemblymember Cottie Petrie-Norris, chair of the Utilities and Energy Committee, suggested using a $325 million state transmission accelerator fund for competitive transmission projects at the hearing.
Other options discussed include bringing in competitive transmission developers to build projects on PG&E’s delayed list and allowing solar and battery developers to construct the grid connections they need through arrangements such as build-transfer agreements. The source report does not say that any of these proposals has been approved or give a schedule for decisions. Further updates on utility investment, project-specific connection dates and legislative action will help show whether the delays can be contained.
Key Questions
What is PG&E cutting?
The source report says PG&E plans to cut $2 billion in grid investment. It does not provide a detailed breakdown of which projects or spending categories would be reduced.
How many clean-energy projects could be affected?
A PG&E spokesperson said more than 60 renewable and storage projects scheduled to come online by 2030 could be affected. Together, the projects could add at least 15 gigawatts of capacity, but the report does not identify which projects will face delays.
Does this mean California will miss its clean-energy targets?
That is not confirmed. Smutny-Jones warned that delays could threaten the state’s goal of adding 6 gigawatts of clean energy and storage by 2032. The eventual effect depends on project schedules, connection work and any state response.
What options are being discussed?
Proposals raised include renewed talks on wildfire liability, a state transmission accelerator fund, competitive transmission developers and developer-built grid connections that could later be transferred. The report does not say that any proposal has been adopted.
Source: canarymedia.com
