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FinancePG&E defers $2 bln in spending, launches strategic review after wildfire bill setback
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On September 2, 2026, PG&E announced it will defer approximately $2 billion in 2027 spending, reducing its capital plan to about $11.4 billion from a previously planned $13.4 billion. The decision comes as the utility launches a strategic review amid renewed uncertainty over wildfire liability costs. A Senate bill amendment failed to significantly reduce utilities' exposure to wildfire-related expenses or address the long-term solvency of California's wildfire fund. CEO Patti Poppe stated that California's wildfire liability framework creates financing risks that drive higher costs, affect customer affordability, and limit energy system investment. The review will evaluate regulatory, financial, operational, and strategic alternatives, including options related to how the company is organized and financed. PG&E also noted that its debt financing needs would be reduced by $2 billion as part of the spending deferral.
Source report
Source: Reuters
Sept 2 (Reuters) — Utility company PG&E announced on Wednesday that it will defer approximately $2 billion in 2027 spending, reducing its planned capital expenditure to about $11.4 billion, as it initiates a strategic review amid growing concerns over wildfire liability.
The review follows renewed uncertainty surrounding PG&E's liability costs after a Senate bill amendment failed to significantly reduce utilities' exposure to wildfire-related expenses or address the long-term solvency of California's dedicated wildfire fund.
The company had originally planned to spend $13.4 billion in 2027.
"California's wildfire liability framework continues to create financing risks that drive higher costs, affect customer affordability, and limit investment in the energy system," said CEO Patti Poppe. "Something has to change so that we can better serve our customers."
PG&E stated that the strategic review is intended to help reduce customer costs associated with higher financing expenses. The company added that its debt financing needs would be reduced by $2 billion as a result of the deferral.
The review will evaluate the full range of regulatory, financial, operational, and strategic alternatives reasonably available, including all options related to how the company is organized and financed.
Reporting by Vallari Srivastava in Bengaluru; Editing by Anil D'Silva and Leroy Leo
Source
Yahoo FinanceWestern
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PG&E defers $2 billion in 2027 spending, launches strategic review after wildfire liability reform fails