PG&E Weighs Gas Business Separation Over California Fire Rules

PG&E Corp. said it may spin off, sell or otherwise separate its natural gas business if California doesn’t overhaul its wildfire liability rules. The utility’s 4 million gas customers are bearing borrowing costs associated with the company’s sub-investment-grade credit because the business sits within a holding company exposed to wildfire risk, Chief Executive Officer Patti Poppe said Thursday on a call with investors. “That seems like an issue that should be resolved one way or another,” Poppe said. Related: PG&E Files 10-Year Plan to Underground 5,000 Miles of Power Lines in California PG&E pushed for legislation that would limit utilities’ liabilities for wildfires sparked by their equipment. While Governor Gavin Newsom backed changes, California lawmakers failed to reach an agreement on the contentious issue before ending their legislative session. As a result, PG&E is weighing options that range from corporate ring-fencing to sales and separations as part of a strategic review announced in September, Poppe said on the call. As part of the review, the company is planning on deferring $2 billion of investments next year. Top photo: Patti Poppe, chief executive officer of PG&E Corp., at Ford Accelerate in Detroit, Michigan, on Wednesday, Sept. 30, 2026. Bloomberg. Copyright 2026 Bloomberg. Topics California Wildfire Was this article valuable? Thank you! Please tell us what we can do to improve this article. Thank you! % of people found this article valuable. Please tell us what you liked about it. Here are more articles you may enjoy.