PG&E and other major California utilities are lobbying for legislation that would limit shareholders’ liability for wildfire-related costs. The proposal would cap shareholder liability at a percentage of each utility’s rate base and pass remaining costs on to customers through monthly bills. PG&E’s proposed cap is $5.1 billion.
PG&E executives have warned investors that without the protections, the company may defer $2 billion in capital improvements. The delay could affect connections for new housing developments and green energy projects. PG&E has sent letters to thousands of customers warning of possible delays. Consumer advocates and some lawmakers have criticized the move.