California
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Correct.
Any grid operator offering discounts for overnight, off-peak power is a grid operator that either doesn't have sufficient solar capacity, or a grid operator trying to maximize the profitability of their baseload generators at the expense of solar expansion. With solar not being available at night, there should be a shortage of power rather than a surplus. If they have adequate solar generation, overnight power costs should be at a premium, not a discount.
They should be driving industrial loads to daytime operation that can be met by solar, not nighttime that can only be met by baseload generation or pumped storage, both of which are more expensive sources of power than solar.
The only part of your comment I was criticizing was the idea that consuming off-peak power would contribute to bankrupting PG&E. It won't. That off-peak consumption improves their profitability.