PG&E Corporation (NYSE:PCG) announced a strategic review of its business structure and financing options alongside changes to its 2027 capital plan that will defer approximately $2 billion of previously planned investment.
The company’s board has established a Strategic Review Committee consisting of four independent directors. The committee will assess regulatory, financial, operational and strategic alternatives as part of a review aimed at strengthening PG&E’s financial position and achieving investment-grade status.
PG&E said it intends to seek input from California regulators, policymakers and other stakeholders during the process.
PG&E Cites Wildfire Liability Framework in Review
Chief Executive Officer Patti Poppe identified California’s wildfire liability framework as one of the factors behind the strategic review.
Poppe said the framework “continues to create financing risks that drive higher costs, affect customer affordability, and limit investment in the energy system.”
The company did not specify which potential structural or financing alternatives are currently under consideration.
PG&E said it expects to provide updates on the review during its quarterly earnings calls or when material developments occur.
2027 Capital Investment Reduced to $11.4 Billion
Under its revised capital plan, PG&E intends to defer approximately $2 billion of work that had previously been scheduled for 2027.
The change reduces expected capital investment for the year to approximately $11.4 billion.
According to the company, the deferral will also reduce its debt financing requirements by approximately $2 billion.
PG&E said it will continue to fund wildfire mitigation activities and investments required to meet safety compliance obligations.
The revised capital plan represents the company’s current expectations and could change depending on the outcome of the strategic review and other relevant factors.
PG&E Provides 2027 Earnings Guidance
PG&E reaffirmed its full-year 2026 non-GAAP core earnings guidance of $1.64 to $1.66 per share.
The company also introduced 2027 non-GAAP core earnings guidance of $1.78 to $1.82 per share.
These figures represent management’s current expectations and are subject to changes in operating, regulatory and financial conditions.
As part of the strategic review, PG&E plans to reassess its longer-term earnings growth rate as well as its capital investment and rate base outlooks for 2028 through 2030.
The company has not provided a timetable for completing the strategic review in the supplied information.
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