{"id":1048453,"date":"2026-09-07T07:56:20","date_gmt":"2026-09-07T07:56:20","guid":{"rendered":"https:\/\/www.europesays.com\/us\/1048453\/"},"modified":"2026-09-07T07:56:20","modified_gmt":"2026-09-07T07:56:20","slug":"pge-cuts-2-billion-in-planned-spending-over-wildfire-liability-fight","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/1048453\/","title":{"rendered":"PG&E cuts $2 billion in planned spending over wildfire liability fight"},"content":{"rendered":"

California\u2019s Democratic leaders are facing a fresh standoff with the state\u2019s biggest utility after PG&E <\/a>announced it would pull back billions of dollars in planned spending. <\/p>\n

The move now has put renewed pressure on Sacramento<\/a> to resolve a bitter fight over who should pay when utility equipment sparks catastrophic wildfires.<\/p>\n

PG&E said it plans to reduce its 2027 investments by about $2 billion, citing the growing financial burden of California\u2019s wildfire-liability rules. <\/p>\n

The announcement comes just after lawmakers ended their legislative session without reaching a deal that would have changed how the state\u2019s major investor-owned utilities<\/a> shoulder wildfire costs.<\/p>\n

PG&E said it plans to reduce its 2027 investments by about $2 billion, citing the growing financial burden of California\u2019s wildfire-liability rules. AP<\/p>\n

The move has put Democratic lawmakers in the position of weighing the utilities\u2019 concerns about financing against demands for accountability when their equipment is responsible for devastating fires.<\/p>\n

Assemblywoman Cottie Petrie-Norris, the Democratic chair of the Assembly Utilities and Energy Committee, told KCRA 3 <\/a>that utilities depend on borrowing to finance major construction projects \u2014 and that higher borrowing costs can ultimately affect customers.<\/p>\n

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\u201cWith utilities, like any company, in order to build stuff, they\u2019ve got to borrow money,\u201d Petrie-Norris said. \u201cMuch like you and I, when we\u2019ve got a mortgage, if our credit rating isn\u2019t good, it costs us more money.<\/p>\n

\u201cAnd when it costs PG&E or any of the utilities more money to build and construct utility projects, that\u2019s a bill that gets passed on to all of us, and that\u2019s not OK,\u201d she added.<\/p>\n

California Democrat Cottie Petrie-Norris said, \u201cWhen it costs PG&E or any of the utilities more money to build and construct utility projects, that\u2019s a bill that gets passed on to all of us.\u201d<\/p>\n

Petrie-Norris said the reduction in spending could affect projects involving infrastructure such as poles, wires and sensors, as well as housing-related work, according to the outlet.<\/p>\n

\u201cThat\u2019s also not OK. So that\u2019s why I\u2019m concerned, and that\u2019s why it matters for all of us,\u201d she said. <\/p>\n

The confrontation follows a dramatic collapse of a proposed wildfire-liability overhaul in Sacramento. PG&E, Southern California Edison and San Diego Gas & Electric had pushed lawmakers to shift some wildfire-related costs toward insurance companies. But the legislature ultimately abandoned the proposal after negotiations broke down during the final days of the session.<\/p>\n

The failed effort came after the utilities suffered a sharp market reaction<\/a> with their stock tumbling just the day after.<\/p>\n

Patti Poppe, chief executive officer of PG&E Corp.<\/p>\n

The broader dispute centers on subrogation, under which insurers that pay homeowners after a wildfire can seek reimbursement from utilities they believe are responsible for the blaze. Gov. Gavin Newsom and the utilities had backed restrictions on that practice as part of a broader liability overhaul, while opponents argued the changes could leave wildfire victims and insurers carrying more of the financial burden.<\/p>\n

Petrie-Norris said she hopes PG&E\u2019s spending decision was not intended to pressure lawmakers.<\/p>\n

\u201cI certainly hope not. But that is definitely a question you would have to ask their CEO, not me,\u201d she told KCRA 3.<\/p>\n

The lawmaker also warned that the fight has drawn an array of powerful interests, including utilities, insurers, hedge funds and attorneys.<\/p>\n

PG&E shares plunged 20% after California Democrats gutted Gov. Gavin Newsom\u2019s proposal, which sought to change who pays when utility equipment sparks catastrophic wildfires. Getty Images<\/p>\n

Petrie-Norris said she hopes PG&E\u2019s spending decision was not intended to pressure lawmakers. AP<\/p>\n

\u201cWhen two elephants are fighting, it\u2019s the grass that suffers,\u201d Petrie-Norris said. \u201cWe don\u2019t care about your companies. We don\u2019t care about your industry. We care about what you are doing for Californians.\u201d<\/p>\n

PG&E has maintained that its spending reduction is driven by the difficulty and expense of financing its operations under California\u2019s current liability structure.<\/p>\n

The company is still planning billions of dollars in investment next year and has said its pullback will focus on projects that can be delayed rather than critical wildfire-safety obligations.<\/p>\n

The utility\u2019s CEO has also rejected the suggestion that the announcement was intended as a political pressure tactic, arguing that customers ultimately bear the consequences of the state\u2019s financing and liability framework.<\/p>\n

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