The bonds would make up the biggest portion of an $11 billion financing package to help the company emerge from bankruptcy proceedings.
The first-mortgage bonds will be offered in up to six tranches, a knowledgeable source told Bloomberg. The biggest chunk of issuance will be 30-year bonds, which may yield 2.625 percentage points above treasury securities, the source said.
On Monday, PG&E began marketing high-yield bonds and a term loan, which total $4.75 billion, Bloomberg reports.
PG&E said last week that it would sell shares at a discount to a group of high-powered investment firms.
PG&E agreed to sell $3.25 billion of common stock at $10.50 a share to Fidelity, Appaloosa, Third Point and Zimmer Partners.
The deal, set to go into effect the day PG&E officially emerges from bankruptcy, is part of the utility company's financing plan to emerge from Chapter 11.
PG&E last month said it reached a $13.5 billion settlement with thousands of homeowners in California following a lawsuit over a series of devastating wildfires triggered by the utility giant's equipment.
Faced with $30 billion in potential liability over the wildfires, including the 2018 Camp Fire that destroyed the town of Paradise and killed 85 people, PG&E last year sought protection from its creditors in federal bankruptcy court.
Its shares recently traded at $11.09, up 1%. The stock has risen 9% over the past three months but has plunged 72% over the past two years.