PG&E Defers $2 Billion in Investments After Wildfire Bill Fails

PG&E Corporation will defer approximately $2 billion in investments next year after the California Assembly failed to pass a wildfire response bill. The proposed legislation, which had the support of Governor Gavin Newsom, sought to shift wildfire liabilities away from publicly traded utilities, but lawmakers could not reach a consensus on the measures.

Chief Executive Officer Patti Poppe stated the deferral is part of a strategic review to protect customers and address the company's sub-investment grade credit ratings resulting from wildfire exposure. While the utility will still invest roughly $11.4 billion in California next year, the move is intended to reduce debt financing needs and mitigate the impact on customer rates.

The investment slowdown will affect the pipeline for new generation resources, home construction, and large-load customers. However, the company remains committed to 1.8 gigawatts of data center projects.