PG&E relocating headquarters from San Francisco to Oakland
PG&E announced the company’s decision to move to Oakland, Calif., in 2022, with plans underway to sell its existing San Francisco headquarters and use both the savings and proceeds to provide long-term savings for customers.
While the news might be sudden, the move will not be — the company has stressed this will be a phased move stretched out through 2023. For its customers, though, PG&E expects the shift to bring near-term cost savings while bringing lower headquarters costs in the long-term. As part of this move, PG&E has also requested the California Public Utilities Commission (CPUC) approve the return of net gains from any sale to its customers.
“Our new Oakland headquarters will be significantly more cost-effective, is better suited to the needs of our business, and is a critical part of fulfilling our commitment to operate in a fiscally responsible way that will enable us to achieve our operational and safety goals,” Bill Smith, incoming Interim CEO of PG&E Corporation, said. “Savings from lower headquarters costs will tangibly benefit our customers financially. The move will also bring our employees together in new and better ways in service to our customers.”
The new headquarters will stress efficient use of space and flexibility of layout to promote a healthier work environment in a post-COVID-19 era. The move will take PG&E out of a home it has held for 115 years, but PG&E claims the move will likely provide beneficial tax revenues for both San Francisco and Oakland.
“Oakland is the perfect fit for us for a host of reasons. It is a thriving hub of industry and innovation in our state, and we look forward to establishing our headquarters and contributing to life there,” Andy Versey, PG&E Utility CEO and president, said.
Beginning in 2025, PG&E will also consolidate two other East Bay satellite offices into the new Oakland headquarters. This move, like the headquarters shift, should reduce the company’s overall real estate footprint and yield lower operating costs. The San Francisco facility will be sold through a competitive market process, expected to occur after PG&E emerges from Chapter 11 bankruptcy.
