CPUC Paves the Way for PG&E HQ Sale

The California Public Utilities Commission (CPUC) approved the sale of the San Francisco headquarters complex of PG&E Corporation and Pacific Gas and Electric Company to a Hines company. The CPUC’s final decision approves PG&E’s request to return an estimated $400 million net gain to customers during a five-year period. This offset will help moderate future rate growth as the company continues to make safety and operational investments.

This $800 million transaction includes all the buildings that encompass PG&E’s San Francisco headquarters campus including 77 Beale St. and 245 Market St. PG&E remains on track for a phased relocation into its new headquarters at 300 Lakeside Dr. in Oakland beginning in the first half of 2022.

PG&E expects the move will result in substantially lower headquarters costs in the long term. Moreover, the new Oakland headquarters uses space more efficiently for PG&E’s workforce and provides better layout flexibility.

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

PG&E also plans to consolidate three other East Bay office locations: 1850 Gateway Blvd. in Concord, 3401 Crow Canyon Rd. in San Ramon and one of its Bishop Ranch leased properties also in San Ramon into the new Oakland headquarters. This overall plan simplifies PG&E’s Bay Area real estate footprint and further lowers its real estate costs for the benefit of customers.