PG&E to return $400 million to customers from selling its San Francisco headquarters

With approval from the California Public Utilities Commission (CPUC), the path is open for PG&E to return an estimated $400 million gained from the sale of its San Francisco headquarters to customers.

“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,” Patti Poppe, PG&E Corporation CEO, said. “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.”

That arrangement will benefit customers across a five-year period, and help the company moderate future rate growth as its pumps funds into safety and operational actions. Its headquarters was sold for $800 million in anticipation of a relocation to Oakland, Calif. early next year. That move, PG&E has stated, will likely lead to significantly lower headquarters costs in the long term.

The relocation effort could also be the first of many. PG&E plans to consolidate three other office locations in the East Bay region into the new Oakland headquarters, diminishing the company’s real estate footprint at large and reducing the associated costs. These savings could then be passed on to customers in the area.