PCG changes
Pick any two versions below to diff them.
- Balance sheet
- PG&E borrows mostly at the regulated utility. The CPUC lets the utility fund its rate base with about 52% equity and 47.5% long-term debt, and customers pay the interest through rates. At June 30, 2026, consolidated long-term debt was $61.8 billion. There was also $1.1 billion due within a year and $1.4 billion of short-term borrowings, against $972 million of cash. Of the long-term debt, $55.2 billion sat at the utility. This includes $11.6 billion in special-purpose entities, such as wildfire recovery bonds that dedicated customer charges pay. About $6.6 billion sat at the parent, PG&E Corporation, which pays it from utility dividends. This includes $2.15 billion of 4.25% convertible secured notes due December 1, 2027 and $1.0 billion of 6.850% junior subordinated notes. Debt is high for the cash that PG&E makes. Yahoo Finance data shows net debt of about 6.0 times trailing EBITDA, and EBITDA of about 3.4 times interest. Free cash flow was about minus $4.3 billion in the 12 months to June 30, 2026, because capital spending is larger than operating cash flow. Total liquidity was about $6.5 billion at June 30, 2026, mostly $5.5 billion of undrawn revolving credit lines. One major agency still rates the utility's unsecured debt below investment grade. On September 16, 2026, Fitch kept BBB- but changed the outlook to negative after wildfire reform failed. The debt load and the open wildfire liability limit PG&E's choices. This is why it cut planned 2027 capital spending and did not raise more debt or equity. As of 2026-06-30.
- Checkpoints
- Aug 31, 2026: California legislature votes on wildfire liability reform. Failed. Watch: A passed bill that caps liability or speeds victim payments passes; a session end with no bill fails. Outcome: The session ended with no reform bill, and PG&E stock fell about 20% in one day. Oct 22, 2026: Q3 2026 results: capital plan and strategic review update. Pending. Watch: Kept 2026 guidance and a funded capital plan without new equity passes; a guidance cut or a plan to issue equity fails. Dec 2026: First Dixie Fire plaintiff trial. Pending. Watch: A verdict or settlement in line with PG&E's recorded estimates passes; a large award that sets a costly precedent for about 190 other lawsuits fails. Jan 2027 (estimate): Legislature reconvenes and can take up wildfire reform. Pending. Watch: A reform bill with a liability cap or a faster victim-payment fund moving forward in 2027 passes; no progress fails.