Exploring a Partnership to Deliver Clean Energy in California

KKR & PG&E: Exploring a Partnership to Deliver Clean Energy in California

On April 30, 2024, KKR & Pacific Gas and Electric Company (PG&E), one of the largest utility companies in the United States that has 28,000 regular employees and provides natural gas and electric service to more than 16 million people in Northern and Central California, announced that they have entered exclusive negotiations in connection with the potential acquisition by KKR of a minority interest in Pacific Generation LLC ("Pacific Generation"), a subsidiary of PG&E and the proposed future owner of PG&E's non-nuclear generation assets.

The proposed transaction is subject to execution of mutually agreeable definitive documentation and regulatory approval, as well as other customary closing conditions. If the proposed transaction is agreed between KKR and PG&E and approved by regulators, KKR intends to make the investment through its infrastructure strategy. Formed in 2008 and with $61 billion in assets under management, KKR's Global Infrastructure business has deep expertise in the utility and renewables industry, as well as stable, ongoing access to capital, which affords the firm the ability to take a long-term "buy and build" view on asset management.
With our long-standing roots in California, deep commitment to sustainable investing and decarbonization, and long-term view on asset management, we feel we are well placed to support Pacific Generation in this new chapter. Should this transaction move forward, we feel confident we can deliver benefits for these facilities, the employees that operate them, and the people of California.
Raj Agrawal Partner and Global Head of Infrastructure

The proposed transaction would have numerous and clear benefits for the citizens of California:

Better rates for PG&E customers from improved financial profile

Proposed transaction is anticipated to reduce customer rates by more than $100 million over the next 20 years. Pacific Generation is expected to have higher credit ratings and a lower cost of debt than PG&E. Proposed transaction would enhance PG&E's credit profile, which would benefit PG&E's customers.

Improved safety and reliability of PG&E's energy grid

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

Help California achieve its ambitious decarbonization and electrification goals

KKR's core infrastructure strategy endeavors to have all its investments set goals to reach net-zero emissions by 2050 or sooner, in line with California's ambitious decarbonization plan.


In the News


Overview of the Proposed Transaction

PG&E is seeking approval to transfer its non-nuclear power generation assets to a newly formed subsidiary, Pacific Generation, and to transfer a minority ownership interest in Pacific Generation.1


PG&E would remain the majority owner of Pacific Generation.


The current PG&E workforce would continue to operate and maintain the generation facilities pursuant to various intercompany agreements between PG&E and Pacific Generation.

Regulatory Oversight

The proposed transactions would not impact or change the regulation of Pacific Generation’s assets, which would continue to be overseen by the California Public Utilities Commission (CPUC) and Federal Energy Regulatory Commission (FERC).

Approval Process

The proposed transaction would require approval from the CPUC and FERC. 


1This webpage includes forward-looking statements, and these statements are subject to various risks and uncertainties, including that KKR and PG&E will agree to definitive transaction documentation or that the conditions to closing in any such documentation would be met. There can be no assurance that a transaction will occur.