September 28th, 2022
Today, PG&E announced that it intends to create a subsidiary of PG&E that will incorporate its non-nuclear generation. ESC has been told that it is PG&E’s intent to remain the majority shareholder in the subsidiary “Pacific Generation.” Importantly for ESC members, the subsidiary is to be staffed, in ESC roles, by PG&E employees via a contract between PG&E and the subsidiary. ESC appreciates that management is intending to take an approach that maintains members’ compensation, benefits, and employment security. Management explained that the motivation to create the subsidy and sell a minority stake was to raise capital – not to divest itself of power generation assets. In addition, ESC has secured an agreement to include successor language into any sale agreement to maintain a member’s union contract in the unlikely event of a future sale.