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Posted on 09/03/2026 12:39:17 PM PDT by nickcarraway
California’s largest utility is putting billions of dollars in planned investments on ice as its CEO lashes out at Sacramento over the state’s wildfire liability rules — warning that the company can no longer afford to move forward at its current pace.
PG&E announced Wednesday it plans to defer approximately $2 billion in planned investments for 2027, reducing the amount it expects to borrow while continuing to spend billions on its California operations.
The CEO Patti Poppe said the utility is being squeezed by California’s system for assigning wildfire costs, making it increasingly difficult and expensive to raise the money needed to maintain and upgrade the state’s power grid. “We are unable to fund PG&E’s continued transformation at our current pace,” Poppe said. “Financing our work has become increasingly difficult and expensive due to the way California law assigns the cost of wildfire to utility customers and investors.”
(Excerpt) Read more at nypost.com ...
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Turn out the lights.
When I consider electric utilities or REITs, I exclude any that have substantial operations in blue states. Their higher return is not an adequate risk premium in my view.
Stuck in a hard place. Lower the dividend to help cover these costs, then causes lower stock value and chances of millions of shares being dumped by portfolio managers and pension plans everywhere. Ms. CEO, and the rest of the C-Suite, are then in danger of losing huge bonuses and even their jobs. Meanwhile, the creaky electric grid is groaning under the weight of ever increasing demand needing massive upgrades, while not taking care of the maintenance needed to prevent their share of wildfires and losses, and lawsuits. It took decades to get there PG&E, so.....sounds like everybody’s fault; the executives, the Board, the regulators, etc. California continues its swirl down the bowl.....sad, and mostly preventable. My two cents.
> Turn out the lights. <
I’m guessing California’s politicians would be okay with that. Then they could seize PG&E, and appoint a commissar to run it.
This will be good for the state. Because as we all know, government-run organizations are models of efficiency.
Onward the Revolution!
(I guess.)
Sacramento is trying to get PGE to pay for all the wildfires, even if they were started by arson or lightning.
To the Kalifornia democRATs, everything, EVERYTHING must be electric. Heating, Air Conditioning, oven, stove, auto..... EVERYTHING!
Then, when the next power “crisis” hits..... Warnings and mandates are issued:
DO NOT USE TOO MUCH ELECTRICITY!
Well they say they want to be more like Cuba. So be it.
The entire point is the state of California taking over PG and E. Then they become indemnified and can’t held accountable for crappie performance or services.
Enjoy the suck California you need more of it.
If PG&E had any balls at all they would ABANDON ALL TRANSMISSION LINES and put them up for sale on Ebay with the new buyer assuming all future liability. If nobody buys them SHUT IT ALL DOWN. They will CAVE, I guarantee it.
“””The CEO Patti Poppe said the utility is being squeezed by California’s system for assigning wildfire costs, making it increasingly difficult and expensive to raise the money...”””
This is what happens when California Communists force businesses to pay more and more to the State.
Nobody wants to buy the Corporate Bonds offered by PG&E because PG&E could go bankrupt.
Newsom was trying to get PG&E off the hook for some of the cost of THEIR negligence and put the burden on the already sky high private homeowners’ insurance rates. No thanks! (”Normal” lightning or arson fires not a part of the plan...CalFIRE’s & Federal National Forest firefighting budgets handle those).
https://thebusinessjournal.com/newsom-california-wildfire-liability-plan/
Agreed. And don't forget California's rules against brush removal to reduce future wildfires. Lastly, leftists like to vilify all things energy. So PG&E is on the butt end of all the leftists' misdirection.
This is why we read about rolling brownouts in California. When there's high wind, PG&E shuts off power in those areas to reduce the chances of downed power lines starting a fire. It's what happens when leftists punish the people that provide a service. Leftism unrestrained leads to 3rd world experiences.
“””When I consider electric utilities or REITs, I exclude any that have substantial operations in blue states. Their higher return is not an adequate risk premium in my view.”””
Good move. I also do not purchase Municipal Bonds issued by Blue States.
There are 27 Red States and more than enough Municipal Bonds are issued in those states to meet my needs to purchase.
California is using the Cuba template
Correct sell it to the state let them run it.
Hee Hee Ha Ha
I could be misremembering, but I thought I had once heard that they aren’t even allowed to cut foliage around the utility poles. Heaven forbid that some insect loses a shrub.
Rules AGAINST brush removal?
How does that square up?
I read just a couple weeks ago of a new CA law that you can’t have fekkin’ POTTED PLANTS within a foot of your house.
But they have restrictions on removal of actual flammable material...?
Hangin’s too good fer ‘em.
My understanding is that one of her predecessors said exactly that in relation to politicians in California setting power rates. "You do that and we'll give you the keys. You can run it at a loss."
California has over 100 publicly owned electric utilities, Los Angeles being the largest. I’m curious to know if they are subject to the same liability for wildfires that the IOU’s are. Just wondering.
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