PG&E Puts $22.5B Price Tag on San Francisco Grid Takeover
PCG is trading near its 52-week low of $11.765 (12% above the low).
Summary
PG&E filed testimony with California regulators arguing a government takeover of its San Francisco grid would cost $22.5 billion, including $8.6 billion in business severance damages and physical separation costs. The filing is a formal pushback against municipalization efforts and puts a hard number on a risk that has hung over the stock. It lands amid a rough stretch: the amended wildfire law SB 492 fell short of the liability protection PG&E sought, and the company launched a board-led strategic review of its structure and financing with a $2 billion deferral. A $22.5 billion separation cost estimate makes a city takeover look far more expensive and could blunt political momentum, but it also keeps the municipalization fight in the headlines.
At the time of this announcement, PCG was trading at $13.21 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $29B. The 52-week trading range was $11.77 to $19.16. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.