California's PG&E Plummets 19% Over Wildfire Liability Concerns

Breaking Business Breaking News California’s PG&E Plummets 19% Over Wildfire Liability Concerns By Fiona Riley , Fellow. Follow Author Aug 31, 2026, 11:35am EDT Aug 31, 2026, 12:02pm EDT Topline PG&E shares sank over 19% on Monday after California lawmakers advanced wildfire legislation that leaves the company subject to the state’s existing liability rules, raising concerns among investors about the utility provider’s potential financial exposure to future wildfires. Close-up of logo atop headquarters of utility company Pacific Gas and Electric in San Ramon, California; the company faced bankruptcy in 2019 following wildfire liability concerns, March 12, 2019. (Photo by Smith Collection/Gado/Getty Images) Getty Images Key Facts PG&E shares fell more than 20% to a 52-week low of $13.09 after the markets opened on Monday, before recovering slightly to trade at $13.36 as of 11:30 a.m. EDT. PG&E in a Securities and Exchange Commission filing on Monday said Senate Bill 492 makes progress on wildfire recovery and preparedness but falls short of fully addressing the financial risks created by California’s existing wildfire liability framework. California lawmakers advanced the bill without Gov. Gavin Newsom’s original proposal to prevent insurers from making utility companies pay them back for wildfire claims. The company will hold a webcast and investor call on Wednesday morning to give investors a full response to the bill. TANGENT Edison International shares were down 23% at 11:30 a.m. EDT and Sempra were down over 2% alongside PG&E. KEY BACKGROUND PG&E is California’s largest electric and natural gas utility company, and has faced major financial challenges from wildfires in the past, including filing for bankruptcy in 2019 after it was saddled with tens of billions of dollars in potential wildfire liabilities . The company has since invested heavily in reducing wildfire risk and hardening its grid, but it is still exposed to the state’s rules governing who pays when utility equipment is linked to a fire. California lawmakers advanced Senate Bill 492, which would change how wildfire and recovery claims are handled but leaves out the liability protections PG&E says it needs to support grid investment. The bill requires the company to cover almost 48% of California’s Wildfire Fund if it runs out of money. BIG NUMBER $21 billion. This is the approximate claims-paying capacity of California’s Wildfire Fund , created in 2019 to help cover eligible claims from utility-caused wildfires. Senate Bill 492 does not add new money to the fund or establish a way for replenishing it, leaving PG&E investors concerned about future wildfires. FURTHER READING Putting Out Fires – Is Restructuring The Only Future For PG&E? (Forbes) Got a tip? Share confidential information with Forbes. Editorial Standards Reprints & Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video Explore Topic