PG&E Sinks 16% After California Blocks Wildfire Liability Cap
Updated
Updated · CNBC · Aug 31
PG&E Sinks 16% After California Blocks Wildfire Liability Cap
1 articles · Updated · CNBC · Aug 31
Summary
PG&E fell 16% in premarket trading after California lawmakers blocked a proposal that would have capped how much individuals could seek from utilities whose equipment ignited wildfires.
The selloff deepened as several Wall Street analysts downgraded the stock, with Mizuho saying investors are better positioned in utilities with fewer wildfire-liability issues.
The failed proposal leaves PG&E more exposed to potentially large wildfire claims, keeping liability risk at the center of the utility's valuation.
The drop stood out in a mixed premarket session that also saw energy shares rise with oil up more than 3% after U.S.-Iran strikes.