PG&E, Edison International, Sempra Drop After SB 492 Fails to Include Liability Protection
Shares of PG&E (PCG), Edison International (EIX), and Sempra Energy (SRE) fell sharply in pre-market trading after California lawmakers introduced a new wildfire liability bill that excluded the governor's proposal for utility protection. The legislation, known as SB 492, removes key provisions from Governor Gavin Newsom’s plan to shield utilities from costly wildfire-related lawsuits. The market reaction was severe: PG&E dropped nearly 18.8%, Edison International fell by almost 19.5%, and Sempra Energy declined over 3.9%. The exclusion of liability protections has raised concerns about the financial exposure these utility companies face due to potential legal claims from wildfires, which have become increasingly common in California. The failure to include Newsom’s proposal signals a shift toward holding utilities more accountable for wildfire damages, potentially increasing their long-term liabilities and affecting investor confidence.
Topics: California lawmakers pre-market trading wildfire legislation