PG&E Corp (PCG.N): Policymaking Enters Critical Stage; PCG Sends Message on Plan B

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PG&E Corp (PCG.N): Policymaking Enters Critical Stage; PCG Sends Message on Plan B

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24 Jul 2026 07:08:52 ET │ 14 pages

PG&E Corp (PCG.N)

Policymaking Enters Critical Stage; PCG Sends Message on Plan B

CITI'S TAKE

Into the last month of California legislative session, PCG used earning call

to tell stakeholders it will act on plan B if nothing passes (although

magnitude may be less than investors want). PCG’s data center pipeline Buy

continued to grow with more stringent classifications, and AI deployment is Short-Term View: Upside, expires 11-OCT-26

identified as key future driver of O&M cuts and risk mitigation tools.

Price (23 Jul 26 16:00) US$17.54

Approaching Legislative Session End — Into the short sprint between legislature Target price US$21.00

reconvention on August 3 and the end of the session on August 31, we continue to Expected share price return 19.7%

think California legislature would reach a constructive wildfire bill. A few nuances Expected dividend yield 1.1%

(our view): 1) the bill is more likely to come out towards the last minute to protect

stakeholder interests (recall early leak mid-August last year). While August 28 is the Expected total return 20.9%

last day to formally amend bills, precedents (e.g. SB254 last year) point to possibility Market Cap US$38,630M

of the bill introduced past that deadline; 2) the lawyer group has historically been

among the more challenging stakeholders to get onboard, but we think Governor

involvement (i.e., Tuesday public statement) has helped as the lawyer groups care

about many issues beyond wildfire legislation; 3) greater personal engagement from Price Performance

the Senate leadership may be needed to get the bill across the finish line with some