Company: PCG-PB
Filing Date: 2025-01-21
Form Type: 8-K
Source: 0001193125-25-009579
Chunk: 0

Company: PG&E Corp
Filing Date: 2025-01-21
Form: 8-K
Item: Item 1.01
Chunk 0
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Item 1.01.      Entry into a Material Definitive Agreement  

On January 17, 2025, Pacific Gas and Electric Company (the “

Utility

”) entered into the following agreements: (1) a loan guarantee agreement dated as of January 17, 2025 (the “ Loan Guarantee Agreement”), between the Utility and the U. S. Department of Energy (the “ DOE”), as guarantor; (2) a note purchase agreement dated as of January 17, 2025 (the “ Note Purchase Agreement”), among the Utility, the Federal Financing Bank (“ FFB”), and the DOE; and (3) a future advance promissory note dated January 17, 2025, made by the Utility to FFB (the “ Note” and together with the Note Purchase Agreement, the “ FFB Note Documents”).

The FFB Note Documents provide for a multi-advance term loan facility (the “ Facility”), under which the Utility may make quarterly term loan borrowings through FFB, subject to satisfaction of certain conditions described below. Proceeds of the advances under the Facility are to be used by the Utility to reimburse for “ Eligible Project Costs” previously incurred and either expended or accrued by the Utility in connection with projects that DOE has determined to be “ Eligible Projects” (each as defined in the Loan Guarantee Agreement). The aggregate amount of advances under the Facility may not exceed $15 billion.

In connection with the Loan Guarantee Agreement, the DOE agreed to guarantee the obligations of the Utility under the FFB Note Documents (the “ Guaranteed Loan”). The Guaranteed Loan is made pursuant to the loan guarantee program established under Title XVII of the Energy Policy Act of 2005, as amended (the “ Title XVII Loan Guarantee Program”).

The Facility permits the Utility to borrow during the “ Availability Period,” which continues until the earliest of: (1) the date the Guaranteed Loan reaches $15 billion; (2) September 15, 2031; (3) the occurrence of an event that causes the guarantee issued by DOE in favor of FFB pursuant to the FFB Note Purchase Agreement to cease to be in full force and effect (“ Guarantee Trigger Event”); (4) the date of termination of obligations to disburse any undisbursed amounts of the Guaranteed Loan following the occurrence of any event of default; or (5) January 17, 2030 if the initial first advance has not occurred by that date.

Advances under the Facility

The Utility may request