Utility PG&E beats quarterly profit estimates on higher rates
PCG•Quarterly profit beat driven by higher rates and demand
July 23 (Reuters) - PG&E Corp PCG.N on Thursday reported second-quarter profit that beat Wall Street estimates, driven by higher customer bills and a surge in power demand due to AI data centers, though gains were partly offset by increased spending on wildfire safety.
Demand for AI infrastructure and electrification of homes and businesses are expected to push U.S. power demand to record levels in 2026, supporting new customer connections and data center projects in PG&E's service area.
- PG&E said it advanced new data center projects with an overall pipeline of over 12 gigawatts (GWs).
- The utility's quarterly results were also driven by higher rates following a favorable decision in a rate case proceeding, which is used to determine customer charges for services such as electricity and natural gas.
- By the end of 2027, the utility plans to complete more than 1,900 total miles of underground power lines and more than 2,000 miles of strengthened poles and covered power lines, along with other wildfire safety system upgrades.
- PG&E is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California.
- Wildfire fund expense increased by 15.5% to $126 million, though overall operating expenses fell 3.4% from a year ago.
- On an adjusted basis, PG&E reported a quarterly profit of 40 cents per share, beating analysts' estimates of 36 cents per share, according to data by LSEG.
