PG&E slides as California lawmakers block wildfire-liability shield
-20.06% to $13.27 from $16.60
What moved PCG
- PG&E dropped after California lawmakers blocked a provision of Governor Gavin Newsom’s plan that would have capped how much individuals could seek from utilities whose equipment sparked wildfires.
- Wells Fargo and BMO Capital Markets downgraded PG&E following the legislative setback, with BMO now assuming uncapped wildfire liabilities beyond 2030.
- Bonds of PG&E and Edison International widened as investors reassessed wildfire-liability risk after the bill’s outcome.
- Lawmakers introduced a separate bill over the weekend updating the state’s wildfire response, but it did not shift liability away from the publicly traded utilities as Newsom had sought.
Sources: CNBC · Bloomberg · The Motley Fool