PG&E CEO Calls for California Wildfire Liability Reform After Failed Legislation Hurts Stock
PG&E CEO Patti Poppe expressed hope that California lawmakers can revive wildfire liability reform after a failed legislative proposal caused significant stock declines. The shelved effort aimed to cap the amount individuals could claim from utility companies whose equipment sparked wildfires, but it faced opposition from consumer advocacy groups and victims who argued utilities must remain accountable for prevention efforts. The uncertainty surrounding liability has increased PG&E's borrowing costs, hindered its path back to an investment-grade credit rating, and deterred investors. Poppe said the reform could unlock billions in investments and allow the company to restore $2 billion in planned capital spending by 2027. The utility recently cut this amount from its budget due to financial uncertainty tied to wildfire risks. PG&E has spent six years improving operations and reducing fire risk, but without legislative clarity, financing remains expensive and growth is constrained.
Topics: credit rating liability reform utility companies wildfires