PG&E Launches Strategic Review and Cuts 2027 Capital Plan by $2 Billion
Pacific Gas & Electric (NYSE:PCG) has initiated a strategic review of its regulatory, financial, operational, and structural alternatives. The move follows the failure of California lawmakers to pass wildfire liability reform legislation during the recent legislative session. A key objective is achieving investment-grade credit ratings by reevaluating financing strategies and capital allocation. PG&E also announced a $2 billion reduction in its 2027 capital plan, bringing it down from $13.4 billion to $11.4 billion. This adjustment aims to reduce utility debt needs and parent-company debt requirements each by approximately $1 billion, lowering financing costs for customers. While some renewable interconnections and infrastructure projects may be delayed, the company emphasized that safety and wildfire mitigation efforts will remain a priority. PG&E reaffirmed its 2026 core earnings per share (EPS) guidance of $1.64-$1.66 and issued updated 2027 EPS guidance of $1.78-$1.82, but withdrew longer-term outlooks for capital expenditures and rate base growth during the strategic review period.
Tickers: $PCG
Topics: capital_plan_reduction debt_restructuring strategic_review wildfire_liability