PG&E Corporation said Monday it will defer approximately $2 billion in 2027 capital spending as part of a strategic review aimed at reducing financing risks tied to California's wildfire liability framework.
The Oakland-based utility, which serves 16 million customers across 70,000 square miles in Northern and Central California, reduced its 2027 capital spending target to roughly $11.4 billion from a previously planned higher level. The deferral is designed to lower debt financing needs by $2 billion and support long-term financial stability.
The company's board established a Strategic Review Committee comprising four independent directors to evaluate regulatory, financial, operational and strategic alternatives. CEO Patti Poppe stated that while PG&E has improved safety, reliability and affordability in recent years, the state's wildfire liability framework continues to create financing risks that drive higher costs.
PG&E reaffirmed its full-year 2026 non-GAAP core earnings guidance of $1.64 to $1.66 per share and initiated 2027 guidance in a range of $1.78 to $1.82 per share. The plan maintains critical safety programs, including the Wildfire Mitigation Plan, while honoring existing labor agreements, pension commitments and claims obligations.
The strategic review will also reassess long-term capital investment outlooks for 2028–2030, the company said.
