PG&E Investing $73B in Capital Spending Through 2030 to Harden System

PG&E Corp. plans to invest $73 billion in capital expenditures through 2030 as it moves to harden a system that’s been exposed by extreme weather.

Utilities are racing to strengthen grids as artificial intelligence, electric cars and new factories boost electric demand and thus risk straining grids. PG&E already had been focused on its system to lessen the risks posed by wildfires.

PG&E’s $73 billion plan disclosed Monday follows the California legislature passing a bill that expands the state’s wildfire fund by $18 billion. That eased investor concern over the reserve’s solvency that emerged after the January wildfires in Los Angeles.

The California fund launched in 2019 after liabilities from wildfires plunged PG&E into bankruptcy. It’s intended to help stabilize utilities’ finances and limit shareholder losses.

PG&E will opt into the wildfire fund extension this week, Chief Executive Officer Patti Poppe said on an investor call. The company’s share of contributions to the wildfire fund account was lowered by 25% to $144 million per year starting in 2029.

Also on Monday, PG&E said it forecasts an annual rate base growth of 9% from 2026 through 2030. It also expects customer bills to stay the same or down in 2027.

“The state has acknowledged that the utilities and their customers cannot continue to carry the full burden of climate-driven catastrophic wildfires, especially when the utility has acted prudently,” Poppe said.