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Cottie Petrie-Norris expresses concern over PG&E's $2 billion spending reduction on infrastructure

Cottie Petrie-Norris, the Democratic chair of the Assembly Utilities and Energy Committee, expressed concern regarding PG&E's announcement that the company will reduce its 2027 investments by approximately $2 billion. The utility company cited the financial burden of California's wildfire-liability rules as the primary reason for the spending pullback. This decision follows a legislative session where lawmakers failed to reach a deal to shift wildfire-related costs from utilities to insurance companies. The utilities, including PG&E, Southern California Edison, and San Diego Gas & Electric, had lobbied for a change to the subrogation process, where insurers seek reimbursement from utilities for fire damage. However, the legislature scrapped the proposal after the utility companies' stocks plummeted. Petrie-Norris noted that higher borrowing costs for utilities can lead to increased bills for customers. She warned that the reduction in spending could impact critical infrastructure such as poles, wires, and sensors. While the user-CEO of PG&E rejected the suggestion that the move was a political pressure tactic, Petrie-Norris emphasized that the legislature remains committed to the discussion. Petrie-Norris and Assemblymember Lisa Calderon plan to hold joint hearings on wildfire liability later this year.

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