PG&E Corp. All Eyes on Wildfire Policy Reform Prospects; Data Center Pipeline Surges +7.6GW QoQ; 2026 Guide + LT Guide Reaffirmed; 2Q26 EPS Beat

Research evidence excerpt

PG&E Corp. All Eyes on Wildfire Policy Reform Prospects; Data Center Pipeline Surges +7.6GW QoQ; 2026 Guide + LT Guide Reaffirmed; 2Q26 EPS Beat

J P M O R G A N North America Equity Research

23 July 2026

PG&E Corp.

All Eyes on Wildfire Policy Reform Prospects; Data Overweight

Center Pipeline Surges +7.6GW QoQ; 2026 Guide + LT PCG, PCG US

Guide Reaffirmed; 2Q26 EPS Beat Price (22 Jul 26):$18.11

Price Target (Dec-27):$25.00

• All eyes on prospects for wildfire policy reform into Aug session-end. North American Utilities

AC Given the fact pattern to date, we view passage of a more durable wildfire Aidan C Kelly

liability framework by California’s August 31 legislative session-end as the (1-212) 622-4912

highest-probability outcome, ahead of either an interim “stepping-stone” aidan.x.kelly@jpmchase.com

measure or no action. If Sacramento fails to act, PCG reiterated that all aspects Jeremy Tonet, CFA

of the plan remain on the table for capital allocation (we sense the ~$23bn (1-212) 622-4915

capacity/new business investment likely carries the most discretionary spend). jeremy.b.tonet@jpmorgan.com

Against this backdrop, we view PCG as offering a comparatively differentiated Diana Niles

return potential and see a pathway for multiple expansion upon favorable IOU (1-212) 622-3328

diana.niles@jpmorgan.com

liability adjustments under a successful SB 254 Phase II passage (buyside J.P. Morgan Securities LLC

feedback framed state-funded backstop as best-case scenario, while alternative

structures involving shareholder-free liability caps could still clear the bar).

• Data center pipeline grows +7.6GW QoQ, with final engineering up

+770MW QoQ. As anticipated, PCG refreshed its data center pipeline, now

standing at 12.71GW as of Jun 2026, up +7.62GW from 5.09GW disclosed in