It was recently announced that PG&E is preparing to file for Chapter 11 bankruptcy.
The company has stated that it does not expect the Chapter 11 process to have any impact on its electric or natural gas service for its customers as a result of the Chapter 11 process.
In terms of its solar customers, here is what we know:
- Payments for net metering, the special billing arrangement that delivers credits to customers who have solar for the full retail value of the electricity their system produces, shouldn’t be impacted. The state requires that PG&E deliver these payments. Whichever entity takes on the company’s debt would be required to make net metering payments also.
- In addition, the rebate for solar storage should carry on. This is because this rebate gets its funding from a charge to ratepayers. Law states this funding must go to solar storage.
According to PG&E, the company has been involved in discussions with lenders:
“PG&E expects to have approximately $5.5 billion of committed DIP financing at the time it files for relief under Chapter 11 on or about January 29, 2019, and has received highly confident letters from a number of major banks. The DIP financing will provide PG&E with sufficient liquidity to fund the Company’s ongoing operations, including its ability to provide safe service to customers.”
Solar energy continues to be a way for Sacramento-area residents and businesses to lower their monthly electricity bills and help the environment at the same time. If you have any questions about installing solar, or questions about solar service, don’t hesitate to reach out to us at 916.853.2700.