PG&E launches strategic review, defers $2B in 2027 capital spending

PG&E Corporation (NYSE: PCG) announced a strategic review of its business structure and financing options, alongside a revised 2027 capital plan that defers approximately $2 billion in planned investments.

The company's board of directors has established a Strategic Review Committee composed of four independent directors. The committee will evaluate regulatory, financial, operational, and strategic alternatives, with a stated objective of becoming a financially strong, investment-grade company. PG&E said it will seek input from California regulators, policymakers, and stakeholders as part of the process.

CEO Patti Poppe cited California's wildfire liability framework as a key driver of the review, saying it "continues to create financing risks that drive higher costs, affect customer affordability, and limit investment in the energy system."

As part of the revised 2027 capital plan, PG&E plans to defer approximately $2 billion of previously planned work, reducing its total 2027 capital investment to approximately $11.4 billion. The company said the deferral would reduce debt financing needs by $2 billion. PG&E stated it will continue funding wildfire mitigation and safety compliance obligations.

PG&E reaffirmed its full-year 2026 non-GAAP core earnings guidance of $1.64 to $1.66 per share and initiated 2027 non-GAAP core earnings guidance of $1.78 to $1.82 per share. The company said it plans to re-evaluate its long-term earnings growth rate and its 2028–2030 capital and rate base outlooks as part of the strategic review.

The company said it expects to provide updates on the strategic review during quarterly earnings calls or when material developments occur.

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