News / US / cnbc
PG&E CEO Pushes for Legislative Action on Wildfire Liability Reform
Utilities · Electric Utilities · cnbc · 2026-09-02
PCG, EIX
PG&E CEO Patti Poppe is urging California lawmakers to revisit wildfire liability legislation after a recent failure to pass reforms caused utility stocks to slump.
What Happened
Legislative Setback and Market Impact: PG&E and Edison International shares plummeted by approximately 20% this week following the collapse of a legislative proposal aimed at capping utility liability for wildfire damages. CEO Patti Poppe remains optimistic that state leaders can revive the discussions, potentially through a special session, to address the critical need for regulatory clarity.
Capital Spending Reductions: In response to the ongoing uncertainty, PG&E has initiated a strategic review that includes a $2 billion reduction in its 2027 capital expenditure plan. This cutback is expected to negatively impact the timeline for critical infrastructure projects, including new housing developments and renewable energy initiatives across California.
Credit Rating and Financing Challenges: The company continues to struggle with the high cost of capital as it seeks to regain an investment-grade credit rating. Management noted that the persistent wildfire liability risk forces the utility to pay higher interest rates, which has cost customers an estimated $600 million in additional debt expenses over the past two years.
Long-term Growth Prospects: Achieving an investment-grade status is central to PG&E's strategy for restoring the $2 billion in planned investments and sustaining a 9% annual earnings growth target. Poppe emphasized that stabilizing the regulatory environment is essential for the company to lower financing costs, improve operational reliability, and maintain consistent dividend growth for shareholders.