PG&E Found $60 Million in Paving It Didn’t Need to Do

A single pipe nobody had mapped cost Josh Mackanic three days and $60,000 when he was an engineer at PG&E. He left and started a company about it.

CivilGrid announced a $26 million Series A on August 27, led by Spark Capital, with Energy Impact Partners, Afore, A*, Ford Street Ventures and SNR joining. Energy Impact Partners is the notable name on that list because its limited partners are utilities, which is also the customer base.

The number utilities can actually use

PG&E ran a case study across 1,600 planned gas distribution projects and identified $60 million in paving costs it did not need to incur. Paving is the cost that shows up when subsurface conditions force a route change, a wider trench, or a second mobilization after somebody hits something.

“That means planning smarter from the start with tools like CivilGrid, which help our teams identify risks earlier, build more efficiently, and avoid unnecessary costs,” said Christine Cowsert, PG&E’s senior vice president of enterprise business and technology modernization.

Pre-con ROI is the hard sell

Roughly 200,000 utility strikes happen in the U.S. each year. Everyone in civil construction knows this. What almost nobody has is a defensible dollar figure for what better subsurface data is worth on a specific program, which is why pre-construction software gets cut first when budgets tighten.

A named investor-owned utility publishing an avoided-cost number changes the conversation. It gives a project engineer something to put in front of a controller, and it is the sort of figure that ends up quoted in bid narratives whether or not the vendor is on the job.

Where the risk sits

The platform is only as good as the record data feeding it, and utility as-builts in most American cities are a mess of paper, scans and institutional memory. CivilGrid, founded in 2020, is essentially betting it can assemble and normalize that faster than each engineering firm can do it alone. GHD, Underwood & Rosenblum and Mark Thomas are already using it.

Utility conflicts remain the single most common reason a civil schedule slips. Six weeks of relocation nobody planned for is worse than almost any weather event, and it is far more predictable.

Subsurface capacity is increasingly what industrial siting turns on, not acreage. Norton Shores, Michigan is funding water and wastewater upgrades to land Chobani’s $567 million La Colombe plant expansion, which is the same constraint viewed from the owner’s side of the table.

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