State lawmakers are worried about PG&E's plan to spend less money on projects | CA politics 360

Dell Technologies shares rose to all-time highs after strong Q2 earnings and raised full-year guidance. Uber announced 3,300 job cuts to focus on robotaxi development. Broadcom shares fell despite strong earnings due to lower-than-expected Q4 revenue guidance. Robinhood Markets gained after bullish analyst notes. Edison International and PG&E fell over 20% due to wildfire-related legislation.

PG&E (PCG) shares fell 20% after California's wildfire-liability reform failed, increasing financial risks. The company deferred $2B in capital spending, reducing its 2027 plan to $11.4B. CEO Patti Poppe announced a strategic review to restore investment-grade credit, with everything on the table. Wildfire risk may raise borrowing costs, impacting future growth.

PG&E (PCG) shares rose 2.4% to $14.30 on Friday, though still down 20.3% from August 27. The company cut its 2027 capital plan by $2 billion, reducing debt needs but potentially limiting future growth. Management maintained 2027 core earnings guidance of $1.78-$1.82 per share. The stock's movement outpaced peers Edison International (EIX) and Sempra (SRE).

California lawmakers failed to pass wildfire reform legislation (S.B. 492) by the Aug. 31 deadline, leaving utilities PG&E and SCE exposed to unlimited liability for wildfire damages. The bill's failure caused a $20B market value drop for the utilities, as investors reacted to the lack of liability caps and subrogation limits. PG&E and SCE have been linked to multiple devastating wildfires in the past decade, with critics arguing they prioritize dividends over infrastructure upgrades.

California scrapped a wildfire liability overhaul, leaving utility credit ratings at risk. PG&E and Southern California Edison bonds and stocks were affected, with S&P warning of potential downgrades. The original proposal included a liability cap and was seen as credit supportive, but the revised bill was deemed insufficient. The issue will be left to the next governor, with Moody's warning of higher electricity rates and economic competitiveness challenges.

California lawmakers failed to pass a bill that would have limited liability for investor-owned utilities in wildfire cases. Governor Newsom had negotiated a compromise, but the Assembly did not vote on it. Utility stocks, including PG&E, Edison, and SDG&E, dropped sharply. The bill's failure has raised concerns about utility financial stability and potential rate hikes. Hearings are planned for the fall to continue discussions on wildfire policies.