Sacramento, CA – PG&E’s Chief Executive Officer Patty Poppe told investors (opens in new tab) on an earnings call today that she expects that a Public Utilities Commission (PUC) report due out November 1st and Assembly hearings next week to make the case for a special session utility bailout – showing coordination with both bodies.
PG&E sent letters (opens in new tab) to 25,000 customers this week claiming they would delay new customer hookups without changes to California’s wildfire liability laws. Consumer Watchdog, which called the tactic (opens in new tab) “bailout blackmail,” had called on (opens in new tab) the PUC weeks ago to investigate its legality, as the infrastructure changes have apparently already been paid for by ratepayers, and to have PG&E reveal the list of projects to be cancelled. The PUC has not responded.
On today’s call, Poppe said: “The [Assembly Utilities and Energy Committee] hearing this week I think was effective at continuing to make the case that the status quo is unacceptable. And, you know, as long as nothing happens, no legislation is passed, our customers continue to pay and it’s a status quo that needs to be resolved. The job’s not done yet. So we found, you know, the hearings that are scheduled next week—another one just got scheduled—so there’s two next week that I think are addressing the right questions and the right issues. And we’re encouraged by that.”
The question was then asked: “We’re still supposed to get the PUC report on this topic November 1st and just any sense of what may come out of that?
Patti Poppe (Chief Executive Officer): “Yeah, I think it will be another good case in why the status quo is unacceptable. I don’t know how many different ways that people are going to be able to publish and say, but I expect the CPUC report to be substantive. They’ve asked really meaningful questions in their discovery, so we were providing very important information to them. It’ll be good for them to be able to share that November 1st with the request of the governor. We expect that that is just another signal that the status quo is just unacceptable.”
“The Public Utilities Commission is supposed to regulate PG&E and ask the tough questions about why it is shutting down projects that ratepayers have already paid for, not coordinate on a report to make the case for a legislative bailout,” said Jamie Court, president of the nonprofit Consumer Watchdog. “PG&E’s CEO revealed the playbook for getting a special session utility bailout today. She forecast the result of Assembly hearings next week and a forthcoming PUC report as though it was all Kabuki theater in an attempt to get the Senate to do a bailout in special session that these companies do not need and legislators refused to give them in regular session. It’s disgusting that PG&E’s CEO would state that she has the complicity of utility regulators and top leaders in the Assembly in an attempt to pressure a special session legislative deal. The Senate needs to have an oversight hearing on the PUC’s failure to hold PG&E accountable for threatening to shut off services that ratepayers appear to already have paid for.”
“PG&E’s CEO sounds remarkably confident about what a regulators’ report that hasn’t been published and legislative hearings that haven’t happened will deliver for her shareholders. Californians deserve to know where that confidence comes from. Put the utilities’ and holding companies’ CEOs and CFOs under oath,” said Joy Chen, Executive Director of Every Fire Survivor’s Network.
Referring to CPUC Decision 02-01-039, as modified by Decision 02-07-043, Chen added, “The CPUC must enforce its own decisions requiring holding companies to put their utilities’ capital needs first. If PG&E claims it cannot finance service to customers, the CPUC must demand proof and stop shareholder payouts that would jeopardize that service.”
Consumer Watchdog and Every Fire Survivor’s Network said California should focus on reducing that risk, not protecting shareholders from it, and that no bailout is needed. They noted that California already compensates utilities for the cost and risk of raising capital. For 2026 through 2028, the CPUC authorized returns on equity of 10.03% for Edison and 9.98% for PG&E to enable them to attract capital and finance infrastructure.
Shareholders are richly rewarded for taking the risks of ownership. California’s three large for-profit utilities reported more than $10 billion in profits in 2025 and paid more than $3 billion in dividends. Their CEOs received nearly $60 million.
The Full Exchange follows:
Steve Fleishman (Analyst at Wolfe Research)
Hi, good morning. So I guess just curious what signals, if any, you’re getting on desire, interest of the legislature to address the wildfire liability this year. I know, I know there’s assembly hearings and maybe some more. Maybe you could talk about what you’ve heard and know so far. Just any sense that the Senate may want to look to do any hearings.
Patti Poppe (Chief Executive Officer)
Yeah, well thanks, Steve. Obviously top of mind for everyone. And look, we continue to see progress. The hearing this week I think was effective at continuing to make the case that the status quo is unacceptable. And, you know, as long as nothing happens, no legislation is passed, our customers continue to pay and it’s a status quo that needs to be resolved. The job’s not done yet. So we found, you know, the hearings that are scheduled next week—another one just got scheduled—so there’s two next week that I think are addressing the right questions and the right issues.
And we’re encouraged by that. In the meantime, obviously, we continue to lean forward and move forward on other alternatives to unlock the value. Obviously, policy reform would be our number one desired next step, but we have a lot of value that is, I would suggest, trapped in the company right now. And so we’re working hard to create parallel paths and move forward. But we’re hopeful that the legislature does continue to act. You know, the Senate, we’re looking to see if they would schedule any hearings. That hasn’t happened yet. But obviously these hearings are very public and the information is clear and many people and many key leaders in the state continue to speak that action is absolutely required.
Steve Fleishman (Analyst at Wolfe Research)
And then I guess just related, just, I think we’re still, we’re still supposed to get the PUC report on this topic November 1st and just any sense of what may come out of that?
Patti Poppe (Chief Executive Officer)
Yeah, I think it will be another good case in why the status quo is unacceptable. I don’t know how many different ways that people are going to be able to publish and say, but I expect the CPUC report to be substantive. They’ve asked really meaningful questions in their discovery, so we were providing very important information to them. It’ll be good for them to be able to share that November 1st with the request of the governor. We expect that that is just another signal that the status quo is just unacceptable.
