Sept 2 (Reuters) – Utility PG&E said on Wednesday it will defer about $2 billion in 2027 spending, leaving a capital plan of about $11.4 billion, as it launches a strategic review amid wildfire liability concerns.
The review comes as PG&E faces renewed uncertainty over liability costs after a Senate bill amendment did little to reduce utilities’ exposure to expenses related to the fires or address the long-term solvency of California’s fund for it.
The company had previously planned to spend $13.4 billion in 2027.
“California’s wildfire liability framework continues to create financing risks that drive higher costs, affect customer affordability, and limit investment in the energy system,” CEO Patti Poppe said.
“Something has to change so that we can better serve our customers.”
PG&E said the review is aimed to help reduce customer costs associated with higher financing expenses, adding that its debt financing needs would be reduced by $2 billion.
The review will evaluate the full range of regulatory, financial, operational and strategic alternatives reasonably available, including the full range of options related to how the company is organized and financed.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Anil D’Silva and Leroy Leo)
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