TUD Optimistic Negotiations Will Proceed With PG&E Over Water Infrastructure
Sonora, CA — There have been some new developments related to TUD’s desire to purchase PG&E water infrastructure such as Pinecrest Lake, Lyons Reservoir and the Tuolumne Main Canal.
We reported in June that TUD was in negotiations to acquire the assets, but discussions were halted because PG&E wanted to “re-evaluate its long-term strategy.”
PG&E has now announced that it has formed a new subsidiary company, Pacific Generation, LLC, and has filed with the California Public Utilities Commission to sell a minority stake in that subsidiary. Pacific Generation is planning to own the company’s “non-nuclear power generation assets.”
Mike Schonherr, director of strategic agreements for PG&E, sent an email to TUD last week, stating, “I do not expect this transaction to impair any future discussions regarding the potential sale of the Phoenix Project and Pinecrest Reservoir to TUD. Should PG&E conclude that Phoenix and Pinecrest are not needed to meet its future operational needs, PG&E’s requested approval and expected terms of the minority interest sale (subject to negotiation) would allow it to pursue the sale of the assets to TUD without further approvals from minority investors in Pacific Generation.”
The district has also put out a statement from TUD Board Vice President Jeff Kerns, who states, “We are happy to be able to share what seems like promising news regarding PG&E’s continued interest in the acquisition and look forward to resuming negotiations as soon as PG&E is ready.”
TUD reports that it will share more information about the potential acquisition of PG&E assets as it becomes available.
