California Democrats confront PG&E as utility slashes $2 billion from future projects

PG&E disclosed a plan to trim roughly $2 billion from its 2027 capital spending, citing the growing expense of complying with the state’s wildfire-liability regulations. The move has intensified a clash with California Democrats, who argue that the utility’s higher borrowing costs will ultimately raise bills for consumers. Assemblywoman Cottie Petrie-Norris warned that the cut may postpone projects involving poles, wires, sensors and housing-related infrastructure.

The dispute follows a failed legislative effort to move some wildfire-related liabilities onto insurance companies, a proposal backed by Gov. Gavin Newsom and the utilities but rejected by the legislature. PG&E’s CEO Patti Poppe denied the cut is a political tactic, emphasizing that the utility will still fund critical wildfire-safety work while delaying less essential projects. Critics note that the standoff pits powerful interests—including utilities, insurers, hedge funds and attorneys—against ordinary Californians.