PG&E Stock Rebounds on $11.4 Billion California Investment Plan Amid Wildfire Liability Concerns

PG&E Corporation's stock has rebounded after falling 18% on Monday due to California Senate Bill 492, which failed to include wildfire liability caps or restructure the state wildfire fund beyond 2030. Analysts downgraded PG&E following this development, but the company has announced an $11.4 billion investment plan for California in 2027, deferring $2 billion of planned spending.

The strategic review will cover regulatory, financial, operational, and strategic options to reduce customer costs tied to higher financing expenses. This includes reviewing how PG&E is organized and financed, with a goal of reducing debt financing needs by $2 billion.

Despite this announcement, analysts remain cautious due to the lack of long-term solutions for California's wildfire liability framework. BofA Securities downgraded PG&E from Buy to Neutral, cutting its price target from $24 to $13, citing elevated wildfire liability risks.