PG&E Launches Strategic Review to Enhance Safety and Affordability

Oakland, Calif., In a significant move to address financial challenges and improve customer service, Pacific Gas and Electric Company (PG&E) has launched a comprehensive strategic review aimed at delivering safe, reliable, and affordable energy to California customers. The initiative is designed to attract necessary investments while maintaining critical safety and compliance standards.

The strategic review, overseen by a committee of independent directors, will evaluate various regulatory, financial, operational, and strategic options. Key objectives include maintaining industry-leading safety performance, enhancing customer affordability, and strengthening the energy system's reliability and resilience. The ultimate goal is to transform PG&E into a financially robust, investment-grade company capable of meeting long-term energy needs.

To manage short-term costs, PG&E plans to defer approximately $2 billion of planned investments in 2027. This measure will reduce the need for higher-cost borrowing while ensuring the continuation of critical safety programs and compliance with regulatory obligations. The company expects to maintain its investment in the Wildfire Mitigation Plan and other safety certification requirements.

PG&E Corporation CEO Patti Poppe emphasized the importance of this initiative, stating, "California's wildfire liability framework continues to pose significant financing risks, driving up costs and limiting investment. It's imperative that we take action now to better serve our customers."

The strategic review process will involve input from California regulators, policymakers, and stakeholders to identify a sustainable path forward. PG&E expects to provide updates on the review during its regular quarterly earnings calls or when significant developments occur.

Financially, PG&E Corporation reaffirmed its full-year 2026 non-GAAP Core earnings guidance of $1.64 to $1.66 per share. For 2027, the company initiated a guidance range of $1.78 to $1.82 per share. The company also intends to reassess its long-term non-GAAP Core EPS growth rate and its 2028-2030 capital investment and rate base outlooks as part of the strategic review.

Forward-looking statements in this release include projections and expectations related to earnings, financial guidance, customer bills, safety performance, system reliability and resilience, credit ratings, and the 2027 Capital Plan. These statements are based on current expectations and assumptions, which may prove to be inaccurate due to various risks and uncertainties.