Business & Markets
PG&E defers $2 billion of 2027 work amid wildfire liability uncertainty
The utility cut its planned 2027 investment to $11.4 billion while preserving its wildfire mitigation and other required safety work.
Executive summary
- The deferral: PG&E plans to defer about $2 billion of 2027 work, reducing its planned California investment to approximately $11.4 billion from $13.4 billion.PG&E — Strategic review and revised 2027 capital planReuters — PG&E defers $2 billion after wildfire bill setback
- The review: A four-director committee will examine regulatory, financial, operational and organizational alternatives for the utility.PG&E — Strategic review and revised 2027 capital planReuters — PG&E defers $2 billion after wildfire bill setback
- The constraint: PG&E said California's wildfire liability framework raises financing costs and limits investment; Reuters reported the company acted after state legislation failed to deliver the protections utilities sought.PG&E — Strategic review and revised 2027 capital planReuters — PG&E defers $2 billion after wildfire bill setbackAssociated Press — California lawmakers postpone wildfire compensation legislation
- What remains funded: The company said it will preserve critical safety programs, its Wildfire Mitigation Plan and required compliance work while reducing its 2027 borrowing needs by $2 billion.PG&E — Strategic review and revised 2027 capital plan
PG&E will defer about $2 billion of planned work in 2027 and has begun a strategic review of how the California utility is organized and financed, citing continuing uncertainty over wildfire liability. The revised plan leaves approximately $11.4 billion of investment in California next year, down from $13.4 billion, and reduces the company's expected debt financing needs by the same $2 billion.PG&E — Strategic review and revised 2027 capital planReuters — PG&E defers $2 billion after wildfire bill setback
The board created a committee of four independent directors to evaluate regulatory, financial, operational and strategic alternatives. PG&E said the review is intended to improve customer affordability, maintain safety and reliability, and strengthen its ability to attract capital, but cautioned that it may not identify or complete any transaction or restructuring.PG&E — Strategic review and revised 2027 capital planReuters — PG&E defers $2 billion after wildfire bill setback
PG&E tied the action to California's wildfire liability framework, which Chief Executive Patti Poppe said drives higher financing costs and constrains investment. Reuters reported that an amended state Senate bill did little to reduce utilities' exposure to wildfire expenses or address the long-term solvency of California's Wildfire Fund. The California Assembly then ended its session without voting on a separate victim-compensation proposal, and Speaker Robert Rivas said lawmakers would return to the issue in the fall, according to the Associated Press.PG&E — Strategic review and revised 2027 capital planReuters — PG&E defers $2 billion after wildfire bill setbackAssociated Press — California lawmakers postpone wildfire compensation legislation
The utility said the delayed work may slow some programs, including certain housing and renewable-generation connections, technology upgrades and large-load projects beyond the first 1.6 gigawatts. It said critical safety spending, its Wildfire Mitigation Plan and safety-certification obligations will continue at current performance levels.PG&E — Strategic review and revised 2027 capital planReuters — PG&E defers $2 billion after wildfire bill setback
PG&E reaffirmed its 2026 non-GAAP core earnings forecast of $1.64 to $1.66 per share and introduced a 2027 range of $1.78 to $1.82. The company also withdrew its five-year capital plan and earnings-growth outlook beyond 2027, leaving the longer-term investment path dependent on the review and California's policy response.PG&E — Strategic review and revised 2027 capital planReuters — PG&E defers $2 billion after wildfire bill setback