Troubles at PG&E threaten car goals

California has set its sights on having millions more electric cars on the road over the next decade, but the planned bankruptcy of Pacific Gas and Electric Co., the state’s largest investor-owned utility, could complicate efforts to achieve that goal.

Former Gov. Jerry Brown laid out a target of 5 million electric cars in the state by 2030 and 250,000 charging stations by 2025. Utilities such as PG&E had intended to play a key role in building out the charging infrastructure — a rare new market opportunity in a business whose growth is otherwise constrained by regulation.

The initiatives are central to California’s broader climate ambitions, since cars are one of the leading sources of planetwarming pollutants. And the state’s emissions from the transportation sector have continued to increase, even as other sources wane.

PG&E’s announcement that it plans to seek bankruptcy protection by the end of this month because of the financial toll of the state’s devastating wildfires, however, make the utility’s ability to continue making major investments in charging stations — and other pro-environment ini-

tiatives — uncertain.

“It does put into question what happens regarding infrastructure,” said Assemblyman Phil Ting, D-San Francisco, who authored a bill passed last year that requires regulators to study how many charging stations will be needed in the future.

Ting acknowledged that PG&E’s intended bankruptcy filing — expected on or about Jan. 29 — could have a harmful effect on its entrance into the charging market. If the utility follows through on its intent to seek protection from creditors under Chapter 11 of the bankruptcy code, its actions will be tightly controlled by a judge.

But Ting has not lost hope in the state’s ability to fulfill its ambitious vision for electric cars.

“I think the state will have to take a look at what other ways, or what other parties may be turned to, to go do this,” he said. Ting noted that Volkswagen, for example, is required to make investments in electric car projects in the state because of its emissions cheating settlement.

PG&E already received approval from state utility regulators for about $396.4 million in electric vehiclerelated investments, including about 7,500 standard charging stations and 234 fast-charging stations, among other projects.

It’s not clear if all those projects — which were intended to be part of a larger effort — will come to fruition now.

“PG&E recognizes its important role in supporting the state’s commitment to clean energy initiatives and remains committed to continuing to help California achieve its clean energy goals,” said James Noonan, a spokesman for the utility, in an email. “We appreciate the concerns from stakeholders across the state of the impact that our intention to file for Chapter 11 protections could have on the state’s clean energy progress.”

Bankruptcy protection is intended to provide PG&E with access to funds it needs to support its operations and allow the utility to devise a “range of alternatives to provide for the safe delivery of natural gas and electric service for the long term in an environment that continues to be challenged by climate change,” Noonan said in the email.

California’s electric vehicle ambitions are not the only climate effort at stake.

A coalition of clean energy groups sent a letter Monday to Gov. Gavin Newsom and state legislative leaders expressing “a great sense of urgency” about PG&E’s bankruptcy announcement. The letter was signed by wind and solar power organizations and other renewable energy groups.

The organizations urged state leaders to “seek immediate assurance” from PG&E that it will protect agreements with clean energy providers. The utility’s “financial vulnerability” has had a destabilizing effect on energy markets already, and other companies with “exposure to PG&E” have seen their stock prices decline because of the bankruptcy announcement, the letter said.

“What is at stake is not just the future of PG&E but also California’s ability to meet its ambitious climate change mitigation goals, which will require billions of dollars in additional investment in renewable energy over the next several years,” the letter said.

A slowed rollout of charging stations could be among the most obvious effects — and it could be felt in multiple ways.

Michael Wara, director of Stanford University’s climate and energy policy program, said he was “profoundly concerned” about how bankruptcy would influence PG&E’s ability to advance electric car progress.

The problem would not be limited to the utility’s investments, he said, noting that infrastructure investments are required to handle more electric car charging stations regardless of who wants to build them.

“Electricity is just like fuel,” Wara said. “Instead of fueling your car at the gas station, you’re fueling it at your house through a wire, and you have to build bigger wires to move more fuel to the house.”

Wara said PG&E may “slow-walk spending wherever possible” during bankruptcy, instead saving only for the most essential items. That could make the utility slow to support upgrades necessary to accommodate electric-carrelated projects undertaken by other parties, he said.

He also questioned whether the energy company could follow through on its own ambitious green projects.

“I would not count on PG&E doing that right now,” he said.