PG&E Spending Cuts

PG&E defers billions in spending after lawmakers abandon wildfire liability bill

PG&E has announced it will defer $2 billion in planned capital spending in 2027 to $11.4 billion, a 14.9% reduction from the $13.4bn budget PG&E had planned to spend on various projects. The move comes after California lawmakers abandoned a proposed overhaul of wildfire liability rules. The utility has warned that this could delay electrical connections for new homes, renewable energy projects, data centers, and other development. The company plans to preserve critical safety programs and meet wildfire mitigation and safety plan requirements. Consumer Watchdog, a frequent critic of PG&Es, criticizes the utility's plan to cut capital spending and criticizes state lawmakers' willingness to compromise on wildfire liabilities. The decision to cut spending led to a 5.2% drop in PG&e shares and 27.4% decrease in stock prices for utilities, including PG&C, following the failure of a bill that would have included no limits on survivor compensation or lawyer fees for individual lawsuits, causing stock prices to drop. The firm's credit rating at present is BBB- at Fitch and Baa3.

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