Dive Brief:
- Pacific Gas & Electric does not want to sell distribution assets to Davis, California, which is considering forming a municipal utility.
- Last week, the Davis City Council agreed to spend $600,000 to study forming a muni, which the city thinks could lower its costs and carbon emissions.
- Davis pegs the value of PG&E's assets in the city at up to $27 million while the utility believes it is at least $140 million.
Dive Insight:
Generally, utilities strongly oppose efforts by cities to form municipal utilities. New munis are rarely formed and the process can be acrimonious. In 2006, PG&E spent more than $10 million to block Sacramento Municipal Utility District from expanding into Davis and two other nearby cities.