PG&E considers separating gas business amid wildfire liability concerns

PG&E Corp. is considering spinning off, selling, or otherwise separating its natural gas business due to ongoing disputes regarding California wildfire liability rules. CEO Patti Poppe stated that the company's 4 million gas customers are currently bearing high borrowing costs because the gas business is part of a holding company exposed to wildfire risks.

In addition to potential restructuring, the utility has announced plans to defer $2 billion in planned investments next year. This includes delays for approximately 200 large-capacity projects and 68 renewable energy connections. PG&E has warned that some customers may face delays of up to six months for electricity service.

Advocacy groups, including Consumer Watchdog and Every Fire Survivor’s Network, have called on the California Public Utilities Commission (CPUC) to intervene. They are urging lawmakers to prevent PG&E from transferring funds to its holding company and to ensure the utility meets its legal obligation to serve customers and prioritize capital needs over shareholder payouts.