PG&E CEO warns California wildfire liability rules force $2 billion investment delay

PG&E disclosed plans to delay about $2 billion of its 2027 capital projects, citing the state’s wildfire-liability framework as a barrier to affordable financing. CEO Patti Poppe argued that California law forces utilities to pass wildfire costs to customers and investors, raising borrowing costs and deterring long-term capital. The announcement follows the legislature’s rejection of Governor Gavin Newsom’s sweeping wildfire-liability overhaul, which had aimed to limit insurers’ ability to recover losses from utilities.

Shares of PG&E and Edison International fell as investors priced in continued liability risk. The utility’s board has formed a four-member committee to conduct a comprehensive strategic review of its structure and financing. Despite the deferment, PG&E said it will still invest roughly $11.4 billion in California next year, preserving critical safety and mitigation programs. Poppe warned that without legislative action, ratepayers will ultimately bear the cost of inaction.