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PG&E will allocate $86 million to rehire third-party contractors and has secured another provider of power transformers in South Korea. Photo by Robert Linder on unsplash.com.

published on November 9, 2022 - 12:55 PM
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Note: This story was updated to include a statement from Pacific Gas & Electric Co.

A solution has been reached between builders and Pacific Gas & Electric Co. to a problem that has left buyers waiting to move into their new homes.

A conversation occurred Monday between the utility giant and the California Building Industry Association. The power provider agreed to allocate $86 million to bring back furloughed independent third-party contractors to connect new subdivisions.

Mike Prandini, president of the Building Industry Association of Fresno and Madera Counties, called the agreement a “positive move.” He said builders are reporting to PG&E how many homes sold that have buyers waiting to move in. The investor-owned utility will prioritize those projects with the most people affected by electrification delays.

A lot of mortgage rate locks will be expiring this month and next month, Prandini said.

“Hopefully they’ll get moving by the end of next week,” Prandini said, adding it could be a couple weeks before homes start getting connected.

“We are actively working to increase the number of customers we will connect through the end of this year,” a statement from PG&E read.

“We’re talking directly with impacted customers to understand their immediate needs so we can prioritize our resources to have the most impact for the public good as possible,” the statement went to say.

Pacific Gas & Electric told builders in October that projects could take up to 150 days to be connected to the power grid, Prandini said in a previous interview. Up to 400 homes were awaiting electrification.

Homebuyers waiting to move into homes were living in hotels or leasing month-to-month in apartments, Prandini said.

The problem grabbed the attention of politicians in the City of Fresno who proposed hiring a consultant to look into alternatives to PG&E, including municipally-controlled power. The proposal was tabled by councilmembers until early December.

Councilman Garry Bredefeld said he still wants to look into alternatives to PG&E. Mayor Jerry Dyer also maintained his position.

“This agreement between PG&E and the Building Industry does nothing to address the intolerable rate increases that continue to burden our residents and business owners in the Valley,” Dyer said in a statement.

“I am not interested in acquiring PG&E assets, but I am interested in finding ways to improve services and lower utility rates,” he added.

Council Vice President Tyler Maxwell, who cosponsored the proposal to hire a consultant, was not reachable Wednesday morning.

In addition to rehiring contractors, PG&E said it also secured another transformer provider located in Korea. Those transformers — which had also been an obstacle in electrification — would begin arriving in January 2023. The Building Industry Association and PG&E also said they would hold monthly meetings to maintain lines of communication.

“We are joining a meeting later this week called by Fresno City Council leadership to discuss solutions we believe will help address the current impacts, and accelerate new business connections in Fresno next year and beyond,” the statement from PG&E read.


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