California utilities slide after revised wildfire risk bill
PCG•Bill changes and analyst reaction
California legislature amended Senate Bill 492, which addresses wildfire risk reduction and recovery, preserving insurers' ability to recover wildfire-related claim payments from utilities.
"California wildfire legislation appears to provide no meaningful incremental benefit for utilities versus the existing framework," TD Cowen analysts said in a note.
Jefferies analysts pointed to more downside for PG&E and also noted the company could increase its dividend payout rather than turn to stock buybacks given the political pushback.
Company responses and year-to-date moves
PG&E said the bill does not adequately address financing risks tied to California's wildfire-liability framework.
Edison unit Southern California Edison called for comprehensive wildfire reform to protect communities and keep bills affordable.
PCG was up 3.3% year to date, EIX up 16.9%, and SRE down 4.5%.
California utilities fall after wildfire bill revision
Shares of major California electric utilities fell in premarket trading; PG&E Corp (PCG.N) was down 10.5%, Edison International (EIX.N) down 4.8% and Sempra (SRE.N) down 1.4% before the bell.
