California Democrats panic as PG&E cuts $2 billion in planned spending over wildfire liability fight

California’s Democratic leaders are facing a fresh standoff with the state’s biggest utility after PG&E announced it would pull back billions of dollars in planned spending.The move now has put renewed pressure on Sacramento to resolve a bitter fight over who should pay when utility equipment sparks catastrophic wildfires.PG&E said it plans to reduce its 2027 investments by about $2 billion, citing the growing financial burden of California’s wildfire-liability rules.

The announcement comes just after lawmakers ended their legislative session without reaching a deal that would have changed how the state’s major investor-owned utilities shoulder wildfire costs.The move has put Democratic lawmakers in the position of weighing the utilities’ concerns about financing against demands for accountability when their equipment is responsible for devastating fires.Assemblywoman Cottie Petrie-Norris, the Democratic chair of the Assembly Utilities and Energy Committee, told KCRA 3 that utilities depend on borrowing to finance major construction projects — and that higher borrowing costs can ultimately affect customers.California's top news, sports and entertainment delivered to your inbox every day.

Please provide a valid email.By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story “With utilities, like any company, in order to build stuff, they’ve got to borrow money,” Petrie-Norris said.“Much like you and I, when we’ve got a mortgage, if our credit rating isn’t good, it costs us more money.“And when it costs PG&E or any of the utilities more money to build and construct utility projects, that’s a bill that gets passed on to all of us, and that’s not OK,” she added.Petrie-Norris said the reduction in spending could affect projects involving infrastructure such as poles, wires and sensors, as well as housing-related work, according to the outle...