US-based electric and gas utility Pacific Gas and Electric Company (PG&E) has received an approval from the Hercules City Council in California to acquire the assets of Hercules Municipal Utility (HMU).

The sale, pending regulatory approval, is expected to offer all residential and industrial customers of HMU a low PG&E rate.

The city of Hercules, which owns and operates municipal electric utility HMU, decided to sell the assets to focus more on delivering core city services.

Hercules city selected PG&E in a bid to provide more efficient, reliable, and affordable electric services. The city also plans to retire the HMU bond debt with the proceeds from the sale.

PG&E Electric Operations executive vice president Geisha Williams said the company is set to provide the city of Hercules with reliable, affordable, safe and clean electric service.

"We’re making significant investments to upgrade and modernize our electric facilities that are resulting in strong reliability for our customers. Last year, PG&E customers experienced the fewest minutes without electricity in company history," Williams added.