San Francisco approves agreement for affordable housing projects with PG and E

The San Francisco County Board of Supervisors recently approved a significant agreement with Pacific Gas and Electric Company (PG&E) aimed at facilitating the connection of affordable housing projects to the electric grid. This resolution, discussed during a meeting on July 4, 2025, is designed to address ongoing challenges that have delayed essential housing developments in the city.

The agreement allows for a streamlined process for certain affordable housing projects, specifically those that are 100% affordable and located on city-owned land. It establishes a ten-year term for the agreement, with the possibility of a five-year extension. This is particularly crucial as the city grapples with a housing crisis, with approximately 33 projects and around 4,000 units currently in the pipeline that could benefit from this agreement.

Pamela Heusing, Director of Federal Agreements and Acquisition Analysis at the San Francisco Public Utilities Commission (SFPUC), highlighted the persistent issues with PG&E, which have included unreasonable requirements and delays that have hindered the progress of vital city services and housing projects. The new agreement aims to mitigate these obstacles by allowing for a more appropriate level of electrical service for these developments.

Lydia Ealy from the Mayor's Office of Housing and Community Development (MOHCD) expressed optimism about the agreement, noting that it would save time and costs associated with project planning and construction. The agreement is expected to enhance the competitiveness of these projects for state funding, which is critical for their success.

However, some supervisors raised concerns about the limitations of the agreement, particularly its focus on 100% affordable housing projects and the exclusion of other public service projects that could also benefit from similar arrangements. Heusing acknowledged these concerns, stating that while the agreement is a step forward, there is a need for broader discussions with PG&E to include more projects in the future.

In addition to the agreement with PG&E, the board also discussed a resolution for the acquisition of a parcel of land at 1979 Mission Street, which is intended for a new affordable housing development. This project is part of a larger effort to meet the city's housing obligations and is expected to yield between 200 to 338 units of affordable housing.

The discussions during the meeting underscored the ongoing challenges faced by the city in securing adequate housing for its residents, particularly those in need of affordable options. The board's actions reflect a commitment to addressing these issues, although the path forward remains complex and requires continued collaboration with utility providers and other stakeholders.