Pacific Gas and Electric Company (PG&E) entered into significant agreements on January 17, 2025, including a Loan Guarantee Agreement with the U.S. Department of Energy (DOE) and a Note Purchase Agreement with the Federal Financing Bank. These agreements establish a multi-advance term loan facility allowing PG&E to borrow up to $15 billion for projects deemed eligible by the DOE under the Title XVII Loan Guarantee Program. The facility permits quarterly borrowing until September 15, 2031, or until the $15 billion cap is reached, with advances subject to stringent conditions, including compliance with environmental and labor laws. Each advance will mature either 22 years after issuance or by January 17, 2055, and will bear interest at Treasury rates plus 0.375%.

The loans are secured by PG&E's collateral first mortgage bonds and subject to various covenants and events of default. These include maintaining a debt-to-capitalization ratio below 65%, adhering to federal regulations, and ensuring project eligibility. In the event of a default, the DOE may enforce penalties, including accelerated repayment. PG&E also outlined mandatory and optional prepayment scenarios, including conditions tied to project abandonment or regulatory approval gaps. These agreements enable PG&E to advance its infrastructure and sustainability projects while meeting federal compliance requirements.