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PG&E May Ditch Gas Business Over Wildfire Liability
22 Oct
Summary
- PG&E considers separating its natural gas business.
- Wildfire liability rules in California are the cause.
- Gas customers face higher borrowing costs due to credit rating.
PG&E Corp. has indicated a potential strategic shift involving its natural gas business, signaling that a spin-off, sale, or other form of separation may occur. This consideration is contingent on California's approach to wildfire liability regulations.
The company's stance suggests that without significant changes to these rules, the future of its natural gas operations under the current structure is uncertain. This potential move impacts the borrowing costs for PG&E's 4 million gas customers.
These customers are currently bearing the financial burden of borrowing costs linked to the business's sub-investment-grade credit rating. This precarious financial standing is directly associated with the natural gas operations, highlighting the interconnectedness of the utility's assets and liabilities.
