Benzinga | Aug 31, 2021 01:02PM EDT

PG&E Reports California Public Utilities Commission Approved Sale Of San Francisco HQ Complex To A Hines Co.; Decision Approves Co.'s Request To Return ~$400M Net Gain To Customers Over 5-Year Period

The California Public Utilities Commission (CPUC) has approved the sale of the San Francisco headquarters complex of PG&E Corporation and Pacific Gas and Electric Company (together, "PG&E" or the "company") to a Hines company. The CPUC's Final Decision approves PG&E's request to return an estimated $400 million net gain to customers over a five-year period. This offset will help moderate future rate growth as the company continues to make significant safety and operational investments.

This $800 million transaction includes all of the buildings that encompass PG&E's San Francisco headquarters campus, including 77 Beale Street and 245 Market Street. PG&E remains on track for a phased move into its new headquarters at 300 Lakeside Drive in Oakland, beginning in the first half of 2022. The move is part of PG&E's broader commitment to implement changes for the long-term benefit of its customers and communities. PG&E expects the move to Oakland to result in substantially lower headquarters costs over the long term.

"PG&E is committed to delivering safe, reliable energy service to our customers while staying true to our pledge to keep their costs as low as possible. In addition to promoting long-term savings for PG&E, the sale of our San Francisco headquarters will help to offset future customer rates at a time when we're making significant safety and operational investments. We have been actively listening to the needs of the Oakland community and are excited to play a part in the city's vitality. It's important to us to deepen our ties to our new hometown," said PG&E Corporation CEO Patti Poppe.

The new Oakland headquarters uses space more efficiently for PG&E's workforce and provides greater flexibility in its layout. Its design both promotes workplace health and safety and accommodates potential new working arrangements.

PG&E also plans to consolidate three other East Bay office locations--1850 Gateway Boulevard in Concord, 3401 Crow Canyon Road in San Ramon, and one of its Bishop Ranch leased properties, also in San Ramon--into the new Oakland headquarters. This overall plan simplifies PG&E's Bay Area real estate footprint and further lowers its real estate costs for the benefit of customers.