PG&E cuts its 2027 capital plan to $11.4 billion, deferring $2 billion of projects

PCG said on September 2 that it will defer $2 billion of work scheduled for 2027, reducing its California capital plan for that year from $13.4 billion to $11.4 billion. The two figures are one action rather than two: $11.4 billion is what remains of the plan after the cut, not new spending announced alongside it. PG&E framed the decision as part of a strategic review aimed at a more affordable energy future for its customers.

The financing effect is the part with the clearest read. PG&E said the deferral reduces its 2027 debt financing need by $2 billion, which matters for a utility whose cost of capital has been the binding constraint on its plan. It reaffirmed 2026 non-GAAP core earnings guidance of $1.64 to $1.66 per share and initiated 2027 guidance of $1.78 to $1.82 per share.

The timing is not incidental. California's SB 492 passed the Senate around August 30 without the liability cap utilities had sought, and the Assembly then adjourned on September 1 without taking it up, effectively killing the bill for the session. PCG shares fell roughly 18% to 19% on the SB 492 news in late August, to about $13.57. Deferring capital a day after the legislative outcome reads as a company adjusting to a wildfire-liability regime that did not change in its favor.

What to watch is which projects were deferred rather than the headline dollar figure. Reliability and wildfire-mitigation work that slips to 2028 still has to be done and still has to be recovered in rates, so a deferral moves the spending rather than removing it. The California Public Utilities Commission's response, and whether the deferral shows up in the next rate case, will determine whether this is genuine cost discipline or a timing shift dressed as one.

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