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PG&E has warned about 25,000 customers to expect delays in connecting to its grid, with more than 60 renewable energy and storage projects among those affected. The utility says wildfire-related financial uncertainty is constraining investment; the scale of actual project delays and whether state leaders will provide a policy or funding response remain unclear.
PG&E has warned about 25,000 customers to expect delays connecting to its electricity grid, including more than 60 renewable energy and storage projects that the company says are scheduled to come online by 2030. The delays could complicate California’s clean energy plans, but the full effect of the utility’s reported $2 billion reduction in grid investment and the projects’ revised timelines is not yet clear.
The warning letters cover a range of customers and projects. According to the report, PG&E estimates connections for housing developments and office buildings could be delayed by one to six months. City and county transportation and public works projects could wait until 2027 or later. The company has not provided a project-by-project account of which clean energy developments will be delayed or by how long.
A PG&E spokesperson said more than 60 renewable and storage projects scheduled to be online by 2030 are among those facing undetermined delays. Together, those projects could add at least 15 gigawatts of capacity, according to the spokesperson. That figure describes their potential capacity; it does not mean that all 15 gigawatts have been canceled or will be delayed.
At an Oct. 28 hearing of the California Assembly Utilities and Energy Committee, Jan Smutny-Jones, chief executive of the Independent Energy Producers Association, said grid delays could weaken the financial prospects of solar projects. He also warned that projects missing federal tax-credit deadlines could face higher costs. Those are industry concerns, not a confirmed estimate of losses across the affected projects.
Grid Delays Put Clean Power Timelines at Risk
California depends on new generation and storage to meet its clean energy targets and replace older power plants. If connection delays push projects off schedule, the state could have less new capacity available when needed. Smutny-Jones said the delays could put pressure on California’s target of adding 6 gigawatts of clean energy and storage by 2032 and could force another postponement of plans to retire more than 3 gigawatts of coastal gas plants.
The consequences are not limited to developers. Delayed connections can affect project financing, construction plans and the timing of electricity supply. PG&E vice president and treasurer Mari Becker argued that wildfire-related financial uncertainty can weaken the company’s credit, raise the cost of borrowing and put upward pressure on customer bills. Her comments describe PG&E’s position; the report does not quantify how much the current delays will increase bills or change power costs.
For customers waiting on new connections, the immediate concern is practical: when the grid work will be completed. For the state, the challenge is balancing utility financial risk, accountability for wildfire harm and the investment needed to connect new energy resources.
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Wildfire Liability and Grid Investment
The reported cutbacks come amid a broader dispute over wildfire liability for California’s investor-owned utilities. The source report says outgoing Gov. Gavin Newsom did not reach an agreement with lawmakers during the legislative session to protect major utilities from potentially severe costs when their equipment sparks fires. The report links that unresolved issue to PG&E’s concerns about its ability to finance grid work.
At the committee hearing, Becker said uncertainty over wildfire costs can affect PG&E’s credit and access to capital. The underlying risk is shaped by California’s inverse condemnation doctrine, under which utilities can be held liable for damage caused by their equipment even when negligence has not been established. That legal framework does not remove the need to address utility negligence: PG&E was found guilty of involuntary manslaughter in 2020 in connection with the Camp Fire.
Energy developers already face challenges connecting projects to California’s transmission system, according to the report. The new warnings add a distribution-grid bottleneck to those existing difficulties. Solar developers also face a federal tax-credit deadline in 2030 under revised rules described in the source report, increasing pressure to finish qualifying projects on time.
“Wildfire financial uncertainty leads to weaker credit, weaker credit leads to more expensive capital, and more expensive capital puts upward pressure on customer bills — and all of this constrains the investments that California needs.”
— Mari Becker, PG&E vice president and treasurer
Project-by-Project Delays Remain Unknown
The report does not establish how many of the affected clean energy projects will miss their planned online dates, how long individual delays will last, or whether any projects will be canceled. PG&E’s figure of at least 15 gigawatts is potential capacity associated with more than 60 projects, not a confirmed loss to California’s supply.
The source material also does not provide a detailed accounting of what the reported $2 billion in grid investment cutbacks covers, how it is distributed across projects, or which planned work will be deferred. It remains unclear whether lawmakers will agree on wildfire-liability changes, whether alternative developers can take on delayed work, or how much any proposed funding would accelerate connections.
Lawmakers Weigh Backup Grid Options
State lawmakers may return to negotiations over wildfire liability, but clean energy advocates say the state should not rely on a deal alone. Jackson pointed to competitive transmission developers and arrangements that could let solar and battery project owners build needed grid connections and transfer them later.
At the hearing, Assemblymember Cottie Petrie-Norris proposed using a $325 million state transmission accelerator fund for competitive transmission projects. The report does not say that the fund has been allocated to PG&E’s delayed projects or that any of the proposed alternatives have been approved. The next markers are whether lawmakers take up a liability proposal, whether state funding is directed to specific projects, and whether PG&E gives customers clearer connection schedules.
Key Questions
What has PG&E told customers?
PG&E sent warning letters to about 25,000 customers about connection delays. The report gives estimates of one to six months for housing and office developments and 2027 or later for some public works and transportation projects.
How many clean energy projects could be affected?
A PG&E spokesperson said more than 60 renewable energy and storage projects scheduled to be online by 2030 are among those facing undetermined delays. Their potential combined capacity is at least 15 gigawatts, but the report does not say how many will miss their schedules.
Has California lost 15 gigawatts of planned clean power?
No such loss is confirmed. The 15-gigawatt figure refers to potential capacity from projects facing delays; it does not mean the projects have been canceled or that all their capacity will be delayed.
Why does PG&E say investment is constrained?
PG&E’s Mari Becker says uncertainty over wildfire financial liability can weaken credit and make capital more expensive, limiting investment. The report does not quantify the effect on customer bills or identify which specific grid projects will be cut.
What options are being discussed?
Proposals include competitive transmission developers taking on projects and solar or battery owners building connection infrastructure under transfer arrangements. Assemblymember Cottie Petrie-Norris also suggested using a $325 million state fund; none of these options is reported as approved for the delayed projects.
Source: canarymedia.com
