This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The City Of Hercules Approves PG&E Purchase Of Hercules Municipal Utility Assets

Stocks in this article: PCG

HERCULES, Calif., May 29, 2013 /PRNewswire/ -- On Tuesday, May 28, 2013, the Hercules City Council approved an agreement with Pacific Gas and Electric Company (PG&E) to purchase the assets of Hercules Municipal Utility (HMU). The sale offers all HMU customers – from residential to industrial – the lower PG&E rate, pending regulatory approval.

"PG&E looks forward to providing customers in the City of Hercules with service that is affordable, reliable, clean and above all, safe," said Geisha Williams, PG&E's Executive Vice President of Electric Operations. "We're making significant investments to upgrade and modernize our electric facilities that are resulting in strong reliability for our customers. Last year, PG&E customers experienced the fewest minutes without electricity in company history."

HMU is a municipal electric utility owned and operated by the City of Hercules since March 2003.The City of Hercules decided last year to sell HMU's assets in order to focus on delivering core city services. The City looked for a utility company with the ability to provide more efficient, reliable, and affordable electric services. The City intends to retire the HMU bond debt with the proceeds from the sale.

"The City of Hercules is pleased with its selection of PG&E to purchase the Hercules Municipal Utility assets. This is the best choice for our Community," said Hercules Mayor John Delgado. "PG&E has a long and successful history serving this region and understands our City's needs. We look forward to partnering with the people at PG&E to bring better service to our residents and businesses."

On June 5, 2012, residents of the City voted to pass Measure N, authorizing the sale of HMU. Measure N was approved by 77% of voters. On August 28, 2012, the Hercules City Council adopted procedures for accepting bids for sale of the HMU assets, as required by the California Public Utilities Code. Representatives of the City solicited bid proposals and ultimately determined that PG&E offered the highest and best bid. Hercules and PG&E then engaged in negotiations to prepare the Asset Purchase Agreement containing all of the necessary terms and conditions for the sale.

"I have been impressed by the high level of professionalism and openness that PG&E's negotiating team demonstrated throughout these complex negotiations," said City Manager Steve Duran. "The City's team also deserves kudos for an extraordinary effort to work with PG&E through all the legal, technical and financial issues necessary to get to this point."

PG&E will begin providing service once the transaction closes.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,856.24 +78.09 0.44%
S&P 500 2,073.80 +12.57 0.61%
NASDAQ 4,772.9150 +24.5190 0.52%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs