PG&E and KKR talk about strategic partnership in new subsidiary

Chicago, April 30 – Pacific Gas & Electric Co. and KKR announced that the entities have entered into exclusive talks on a strategic partnership, according to a press release.

PG&E previously announced that the company is seeking approval to transfer its non-nuclear power generation assets to a newly formed subsidiary, Pacific Generation LLC.

PG&E would retain majority ownership of the new subsidiary, but was looking for a partner for a minority ownership.

Negotiations with KKR refer to the sale of the minority interest in Pacific Generation LLC.

PG&E says that the new subsidiary is expected to have higher credit ratings and a lower cost of debt than PG&E.

The potential investment would also enhance PG&E’s credit profile.

KKR would also provide efficient capital that would help PG&E continue to invest in wildfire prevention, safety, and the critical Pacific Generation fleet.

The electric and natural gas utility is based in Oakland, Calif.

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