The city council of Hercules, California approved a deal by Pacific Gas and Electric Co. (PG&E) to buy the assets of Hercules Municipal Utility (HMU)
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 to focus on delivering core city services. The city intends to retire the HMU bond debt with the proceeds from the sale.
On June 5, 2012, residents of the city voted to pass Measure N, authorizing the sale of HMU. Measure N was approved by 77 percent 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.
PG&E will begin providing service once the transaction closes.