PG&E deferred about $2 billion in planned 2027 investment in September, affecting new customer connections and clean-energy interconnections, a company executive told California lawmakers at an Oct. 28 hearing of the Assembly Utilities and Energy Committee. The hearing video does not identify which specific projects or customers were affected.
Marie Becker, PG&E’s vice president and treasurer, said the utility estimates wildfire-related borrowing premiums on bonds issued since 2017 will produce approximately $4.1 billion in additional interest expenses over those bonds’ lifetimes. She said those financing costs are paid by California ratepayers.
Becker described the figures as part of a broader financing problem: Wildfire risk and potential liability can put pressure on utility credit ratings, making it more expensive to borrow for reliability work, wildfire mitigation, clean-energy projects and new housing and business connections. The hearing record also describes PG&E as below investment grade under S&P’s rating scale, but the available transcript is corrupted in places.
Lawmakers and witnesses also discussed the AB 1054 wildfire fund, which was created after the 2017-18 wildfires and PG&E’s bankruptcy. The Cade, Dixie and Eaton fires are expected to draw on the fund, and the hearing record says Eaton could use much of the remaining balance. The amount available for future fires remained unresolved pending better estimates of Eaton-related costs.
The hearing did not produce a documented vote, formal recommendation or resolution of the liability debate. The $2 billion and $4.1 billion figures were presented as PG&E estimates; additional company filings or hearing materials would be needed to verify the underlying calculations and identify the deferred investments.
