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CALISTOGA, Calif. - Pacific Gas and Electric Company (NYSE:PCG), a $31.85 billion utility currently trading at $14.49 per share, and Energy Vault Holdings Inc. (NYSE:NRGV) have completed the Calistoga Resiliency Center (CRC), a first-of-its-kind hybrid microgrid that combines hydrogen fuel cells with lithium-ion batteries to provide power during Public Safety Power Shutoffs (PSPS). According to InvestingPro data, PG&E maintains profitable operations despite operating with significant debt, with 5 analysts recently revising earnings estimates upward.
The 293 megawatt-hour system serves approximately 1,600 PG&E customers in downtown Calistoga and surrounding areas. It delivers up to 48 hours of continuous energy with a peak output of 8.5 megawatts during power shutoffs implemented to prevent wildfires during extreme weather conditions.
The zero-emission microgrid operates using hydrogen fuel cells for electricity generation when in island mode, while Energy Vault’s DC battery technology works alongside the fuel cells to maintain grid stability. The system is managed by Energy Vault’s VaultOS Energy Management System.
"PG&E is committed to continually delivering innovations that enhance electric system safety and reliability while driving costs down for our customers," said Mike Delaney, Vice President of Utility Partnerships and Innovation at PG&E.
The project was financed with $28 million, including the sale of Investment Tax Credits. Energy Vault owns and operates the facility in collaboration with PG&E under a long-term energy services agreement.
This installation is part of PG&E’s broader microgrid strategy, which has deployed 13 distribution microgrids since 2021 to support communities affected by power shutoffs. The Calistoga facility is the largest and first fully renewable system among these deployments.
The CRC represents a significant advancement in addressing power resiliency challenges in wildfire-prone regions and creates a blueprint for similar installations across California and other regions requiring improved grid resilience, according to information provided in a company press release. With a stable gross profit margin of 38% and positive earnings forecasts, PG&E appears well-positioned to continue investing in grid resilience initiatives. Discover more detailed financial metrics and analysis with InvestingPro, which offers exclusive access to over 30 key financial indicators and professional insights.
In other recent news, PG&E Corporation has entered into a $500 million term loan credit agreement with several lenders, including Wells Fargo Bank as the administrative agent. The loan, which was fully borrowed on the day the agreement was signed, is set to mature on September 23, 2026. Borrowings under this agreement will bear interest at either Term SOFR plus a 1.25% margin or an alternative base rate plus a 0.25% margin, depending on the company’s choice. Meanwhile, Morgan Stanley has upgraded PG&E’s stock from Underweight to Equalweight, raising its price target to $20.00. This decision was based on an improved risk profile and the stock’s discount relative to the sector’s price-to-earnings ratio. On the other hand, UBS has maintained its Neutral rating on PG&E, lowering the price target to $17.00 due to concerns over delays in establishing a permanent wildfire fund solution. UBS also noted the evolving wildfire legislation in California, which has influenced its views positively compared to previous disclosures. These developments reflect ongoing financial and regulatory considerations impacting PG&E.
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