PG&E Initiates Strategic Review After California Wildfire Bill Fails

By Katherine Hamilton

PG&E is starting a strategic review of its business to try to cut expenses and debt needs, after a California bill aimed at improving funding for wildfire victims unexpectedly failed to pass.

Chief Executive Patti Poppe said the strategic review was the result of California's flawed wildfire liability framework, which she said drives higher costs and limits investment in the energy system.

"Something has to change so we can better serve our customers. That's why we're taking action today," Poppe said.

The goals of the review are to maintain safety performance, improve customer affordability, strengthen the reliability of energy systems and create a financially strong company.

As a short-term step of the review, PG&E updated its 2027 capital plan to defer about $2 billion of planned investments, reducing its debt financing needs by the same amount. It still aims to invest about $11.4 billion in California in 2027.

Earlier this week, the California government was working to pass a bill that would have required PG&E to potentially contribute millions to the wildfire reimbursement fund. The bill included several other stipulations to get pay for wildfire survivors faster and limit compensation for executives at electric companies that ignite fires.

The bill passed the Senate, but lost support in the state assembly after Speaker Robert Rivas told his Democratic colleagues he didn't think it went far enough.

California's wildfire reimbursement framework has been a point of contention as lawmakers try to decide who pays for the disasters. The state's liability framework is stricter than in other states, and has drawn criticism from insurers, utility firms and residents.

PG&E said Wednesday it has put together a committee of four independent directors to guide the review. It will also seek input from California regulators and policymakers.

The company said it identified work that can be delayed or deferred by slowing the growth and acceleration of some programs.

PG&E initiated guidance for adjusted earnings per share in 2027 of $1.78 to $1.82. Analysts were projecting $1.80. The company reaffirmed its earnings outlook for this year.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

September 02, 2026 09:09 ET (13:09 GMT)