# PG&E Cuts $2B Capex as Wildfire Reform Stalls

> PG&E slashes 2027 capital plan by $2 billion after California wildfire reforms stall, aiming for investment-grade ratings.
- Title: PG&E Cuts $2B Capex as Wildfire Reform Stalls · BigGo Finance
- Summary: PG&E slashes 2027 capital plan by $2 billion after California wildfire reforms stall, aiming for investment-grade ratings. PG&E cuts $2 billion from 2027…
- Keywords: pg&e, wildfire reform, capital plan, investment grade, california, wildfire liability, strategic review, capex, fitch ratings, s&p global ratings, finance, markets
- Source: BigGo Finance — https://finance.biggo.com/news/US_PCG_2026-10-22
- Author: BigGo Finance
- Published: 2026-10-22T17:34:18+00:00
- Read time: 2 min
- Topics: pg&e, wildfire reform, capital plan, investment grade, california, wildfire liability, strategic review, capex, fitch ratings, s&p global ratings, finance, markets
## PG&E Reaffirms EPS Guidance
PG&E reported third-quarter 2026 core EPS of $0.41 and year-to-date core EPS of $1.24, up from $1.14 a year earlier, and reaffirmed full-year 2026 guidance of $1.64, $1.66 and 2027 guidance of $1.78, $1.82.
## Wildfire Reform Stalls
California lawmakers have not enacted comprehensive wildfire liability reform, prompting PG&E CEO Patti Poppe to call the status quo 'unacceptable'.

> The status quo is unacceptable
## $4 Billion Interest Cost
Sub-investment-grade credit ratings have cost customers an incremental $4 billion in interest expense on debt issued since 2017.

> For all of the debt that we have issued as our sub-investment grade since 2:017 will cost our customers an incremental $4 billion in interest expense over the life of that financing
## Capex Cut to $11.4B
PG&E cuts $2 billion from 2027 capital plan, bringing it to $11.4 billion, and evaluates corporate ring-fencing, sales and separations.
## Investment-Grade Target
PG&E aims for investment-grade ratings through strategic review evaluating ring-fencing, sales and separations to lower financing costs.

> Our review is evaluating whether alternative structures could better reflect the value and risk profile of those businesses in order to lower financing costs for customers
## No New Equity Through 2030
CFO Carolyn Burke states no new equity will be needed through 2030 and the company will not issue shares at current valuation levels.

> We would not issue equity at these current stock price, our valuation
## Strategic Review Timeline
PG&E will announce strategic review outcome no later than summer 2027, with quarterly updates if value-unlocking opportunities arise earlier.

> We just wanted to be clear that there was a finish line in mind
## Wildfire Cost Recovery
PG&E received favorable proposed decision in 2027 general rate case authorizing $456 million in interim rate recovery over 12 months starting January.
## Undergrounding Plan
PG&E filed 10-year electric undergrounding plan proposing 5,000 additional miles between 2028 and 2037 at a cost of $16.6 billion.

> We're not doing undergrounding to make our earnings numbers and to grow CapEx
## Wildfire Liability Impact
Wildfire liability reform stalled, with PG&E's gas business costing customers $4 billion in extra interest due to sub-investment-grade ratings.

> four million gas customers are paying sub investment grade borrowing costs because the unit sits within a holding company exposed to wildfire risk
## Regulatory Milestones
PG&E faces regulatory milestones including wildfire cost recovery proceeding and undergrounding plan approval for high-risk communities.

> We're not doing undergrounding to make our earnings numbers and to grow CapEx
## Strategic Review Focus
PG&E's strategic review evaluates options to unlock value for customers and owners, with investment-grade ratings as a foundational objective.

> We are evaluating all our available paths to unlock value for customers and owners
## Key takeaway

PG&E cuts $2 billion from 2027 capital plan and evaluates breakup to achieve investment-grade ratings as wildfire liability reform stalls.