PG&E CEO Calls on California to Revive Wildfire Reform After Stock Rout

PG&E Chief Executive Patti Poppe is pressing California lawmakers to revive wildfire liability reform after a stalled proposal triggered a punishing selloff in major utility shares.

She said the legislative battle may not be finished despite the failure to advance the measure.

“We really are hopeful that they’ll be able to find their way to get back to the table and finish the job for our customers,” Poppe said during an appearance on CNBC’s Mad Money. “The people of California are waiting.”

PG&E shares have fallen 20 percent this week, while Edison International has lost 21 percent.

The declines reflect renewed investor concern about the enormous financial exposure utilities face when their electrical equipment is blamed for igniting destructive wildfires.

The shelved proposal would have limited how much money individuals could seek from utilities responsible for fires sparked by their infrastructure.

PG&E supplies electricity and natural gas to millions of California customers, leaving the company acutely exposed to the financial consequences of wildfire claims.

Consumer advocates and organizations representing wildfire victims have fiercely criticized attempts to shield utilities from liability.

They argue that power providers must invest more aggressively in prevention, equipment safety, vegetation management, grid resilience, and other measures that reduce ignition risks.

The debate carries fresh emotional weight following the deadly Eaton fire near Los Angeles last year.

Los Angeles County fire officials determined that the blaze was caused by an idle transmission tower owned by Edison, intensifying demands for utility accountability.

Assembly Speaker Robert Rivas said, “Sacramento shouldn’t settle when wildfire survivors lost everything. Over the past several weeks, we have spent hundreds of hours at the table with Californians from every side of this fight, and the verdict is clear: The proposal before us does not yet deliver the relief, accountability or meaningful reform that Californians deserve.”

Poppe countered that the legislative effort is not necessarily dead and could return through additional negotiations.

California lawmakers could also be summoned to a special session focused on the unresolved liability question.

“We’re so close, and I just think that under the leadership of [California Governor] Gavin Newsom and Speaker Rivas, I think they can really do the job,” she said.

Her comments framed compromise as both achievable and increasingly urgent for customers, investors, and planned infrastructure projects.

The financial stakes for PG&E are already becoming visible in its capital program.

The utility announced a strategic review and removed $2 billion from planned spending in 2027, reducing its expected investment for that year to $11.4 billion.

Poppe warned that the cut will delay housing starts and renewable energy developments across California.

Those consequences could deepen concerns about whether unresolved wildfire rules are beginning to constrain grid expansion, clean energy connections, and broader economic development.

Persistent wildfire liability risk has also complicated PG&E’s campaign to recover an investment grade credit rating.

A stronger rating could reduce financing expenses, broaden access to capital, and make the company more attractive to institutional investors that avoid businesses with excessive legal uncertainty.

Poppe said PG&E has spent six years strengthening operations by reducing wildfire danger, improving electric reliability, and lowering customer rates.

Even with that work, she said the possibility of exceptionally large wildfire claims continues to raise borrowing costs and keep potential shareholders away.

“If investors and banks see the risk too high, they charge more, or they don’t enter the stock at all,” Poppe said.

That financing penalty can eventually reach customers because utilities depend on enormous and continuous capital investment to maintain safe, reliable energy networks.

Poppe estimated that reduced borrowing expenses could have saved customers “$600 million just in the last two years of debt issuances.”

She said achieving investment grade status would attract more capital, reinforce PG&E’s growth prospects, and provide greater capacity for essential infrastructure spending.

“It would allow us to pull that $2 billion back into the plan,” Poppe said.

“It would allow us to grow our earnings at 9% plus every year, it would allow us to continue to grow our dividend.”

The confrontation now leaves California balancing compensation for victims against the financial stability of utilities responsible for maintaining the state’s power system.

For PG&E, continued delay threatens capital investment, credit improvement, shareholder confidence, customer costs, and the pace of California’s energy transition.