PG&E is delaying ADU construction in California, builders and homeowners say

In recent months, a growing frustration has emerged among homeowners and builders in California as PG&E (Pacific Gas and Electric) delays Accessory Dwelling Unit (ADU) projects due to issues related to utility connections and infrastructure. This development has left many aspiring homeowners and developers facing significant setbacks, hindering the state’s efforts to increase affordable housing through ADUs, which are crucial in addressing California's housing crisis.

The Growing Need for ADUs in California

California has been facing an ongoing housing shortage for years, with skyrocketing home prices and limited affordable housing options. In response, state lawmakers and city planners have turned to Accessory Dwelling Units (ADUs) as a potential solution to create more housing within existing residential properties. ADUs—sometimes known as granny flats, in-law units, or backyard homes—are small, secondary units that can be built on the same lot as a primary residence.

Despite efforts to streamline the approval process, including relaxed zoning regulations and financial incentives for ADU construction, many homeowners and builders are still running into significant delays—especially when it comes to utility infrastructure. A critical bottleneck has emerged in the form of delays from PG&E, which is responsible for providing essential services like electricity, gas, and water to properties in the region.

PG&E’s Role and the Impact of Delays

PG&E has long been one of the largest utility companies in California, serving millions of residents. However, it has come under increasing scrutiny for its inability to provide timely service and infrastructure upgrades to support the growing demand for new ADUs. According to builders and homeowners, PG&E has been unable to meet the deadlines for utility connections, causing a ripple effect that halts construction projects.

1. Utility Service Delays:
   PG&E’s delays in providing electricity and gas connections for new ADUs are one of the primary causes of construction hold-ups. Homeowners and contractors report waiting months—sometimes even up to a year—before they can move forward with their builds. These delays stem from the utility company’s aging infrastructure, as well as staffing shortages and permit bottlenecks.

2. Costs of Delay:
   For homeowners, delays from PG&E mean that construction costs can skyrocket. Builders are forced to push back timelines, often resulting in higher labor costs, inflation in material prices, and added interest on construction loans. Moreover, for many families, the ADU was intended to provide much-needed rental income or multi-generational living space, meaning these delays also affect the household’s financial planning.

3. Impact on Housing Availability:
   The delay in ADU construction further exacerbates California's housing crisis, limiting the state’s ability to add more affordable housing units. The state has been pushing for a drastic increase in ADU construction as a way to reduce the demand for traditional housing. With thousands of ADUs left incomplete due to utility delays, the solution to the housing crisis is stalled.

Homeowners and Builders Respond to PG&E's Delays

Builders and homeowners are frustrated, as many see these delays as a significant hindrance to addressing California's housing needs. According to ADU builders in areas like San Francisco, Los Angeles, and the Bay Area, PG&E's inefficiencies are causing them to reconsider taking on ADU projects. Several builders have reported moving their operations out of state, where utility infrastructure and service timelines are more predictable.

Homeowners who invested in ADUs to either create rental income or provide housing for family members are equally displeased. Many have turned to local governments, hoping to apply pressure on PG&E to speed up its service connections and provide more transparency in its processes. In some cases, homeowners have sought legal action to hold PG&E accountable for the delays that have thrown off their construction timelines.

Check How to Get an ADU Permit in California

What Are the Solutions?

While PG&E's delays are undeniably frustrating, there are some potential solutions and actions that can be taken:

1. Early Engagement with PG&E:
   Homeowners and builders are encouraged to engage with PG&E early in the design process to ensure that utility infrastructure is accounted for and to avoid last-minute delays. Proactive communication with PG&E can help address potential issues ahead of time, although this might not fully resolve the broader problem of infrastructure overburden.

2. Alternative Energy Solutions:
   Some homeowners are exploring off-grid solutions or renewable energy alternatives, such as solar power, which could reduce reliance on PG&E. While this approach requires a larger upfront investment, it may provide a way to bypass utility connection delays.

3. Local Government Pressure:
   Local officials can play a key role in advocating for faster PG&E service and resolving bottlenecks in the utility connection process. By partnering with local governments, builders and homeowners can ensure that the issue of delayed ADU construction is addressed at a policy level.

4. Utility Infrastructure Investments:
   PG&E itself needs to invest heavily in upgrading its infrastructure to meet the growing demand for ADUs and housing in general. Whether through increased staffing, more streamlined permit processes, or improved technology for faster connections, these upgrades are essential to supporting the state's housing goals.