PG&E (PCG) - Get PG&E Corporation Report shares rose Monday after the California utility said it was selling its San Francisco headquarters to real estate investment firm Hines Atlas for $800 million.
The headquarters complex includes 77 Beale Street and 245 Market Street.
“PG&E will be proposing to [regulators] to distribute approximately $390 million to $420 million to customers resulting from the gain on sale over a five-year period to offset future customer rates,” the company said.
“PG&E remains on track for a phased move into its new headquarters at 300 Lakeside Drive in Oakland, beginning in the first half of 2022. … PG&E expects the move to Oakland to result in substantially lower headquarters costs over a long-term period.”
The stock recently traded at $10.49, up 2%. It has dropped 82% over the past five years amid the company’s raft of woes.
PG&E in 2019 filed for protection from creditors under the bankruptcy laws, after it was overwhelmed by liabilities from wildfires sparked by its equipment. The company still has $42 billion of debt, according to Bloomberg.
In November, PG&E named then CMS Energy CMS Chief Executive Patricia 'Patti' Poppe to take over as head of the utility company. Poppe, then 52, succeeded William Smith.
Last July, California fire investigators said PG&E equipment failures were to blame for a 2019 wildfire in Northern California that burned 78,000 acres, destroyed 374 buildings and caused four injuries.
The finding came just days after PG&E exited bankruptcy proceedings, which saw it settle billions of dollars in claims from fatal wildfires in 2017 and 2018.