PG&E Cuts 2027 Capital Plan by $2 Billion as CEO Pushes California Wildfire Reform
Updated
Updated · CNBC · Sep 2
PG&E Cuts 2027 Capital Plan by $2 Billion as CEO Pushes California Wildfire Reform
3 articles · Updated · CNBC · Sep 2
Summary
$2 billion was cut from PG&E's 2027 capital plan, reducing planned investment to $11.4 billion after California lawmakers failed to advance wildfire-liability legislation.
Patti Poppe said the utility still hopes Governor Gavin Newsom and Assembly Speaker Robert Rivas can revive the effort, potentially in a special session, because unresolved liability risk keeps financing costs high.
PG&E shares have fallen 20% this week and Edison International is down 21%, reflecting investor concern that utilities remain exposed to potentially large wildfire claims.
Poppe said lower borrowing costs could have saved customers $600 million over the last two years and that liability reform could help PG&E regain investment-grade status, restore the $2 billion, and support 9%-plus earnings growth.
Consumer and wildfire-victim advocates oppose shielding utilities from fire damages, while Rivas said the stalled proposal still failed to provide enough relief, accountability or meaningful reform.