PG&E Weighs Spinning Off or Selling Its Gas Business as Wildfire Risk Raises Borrowing Costs for 4 Million Customers, CEO Says
Pacific Gas and Electric Company (PG&E) chief executive Patti Poppe said on the company's third-quarter earnings call on October 22 that its ongoing strategic review includes the natural gas business: if California lawmakers do not enact policy reform, the company could pursue a regulator-approved spin-off, sale or other separation of the gas business from a holding-company structure exposed to wildfire risk.
Poppe said PG&E's 4 million gas customers are paying sub-investment-grade borrowing costs because the business sits within a holding company exposed to wildfire risk, and that the issue should be resolved one way or another — through policy reform if possible, or through a transaction that unlocks value and lowers borrowing costs for gas customers. California lawmakers ended their session without approving the wildfire liability legislation PG&E had sought.
She said the review weighs unlocking value for customers and owners, the feasibility of reaching investment-grade status for the separated businesses, and the ability to execute a transaction. PG&E reported core earnings of $0.41 per share for the third quarter and reaffirmed its 2026 guidance.
Related: PG&E Q3 core EPS $0.41, 2026 guidance reaffirmed
Published by GSM · USA (original Chinese edition)
Photo: PG&E 位于 Sacramento 的厂房历史资料图（1912 年，右侧为煤气储柜）。 Photo: Wikimedia Commons (Public domain)
