PG&E considers separating natural gas business over wildfire rules

PG&E: Pacific Gas and Electric Corporation is a major investor-owned utility providing electricity and natural gas services across Northern and Central California. The company has stated it may separate its natural gas business to address financing challenges stemming from the parent company's exposure to wildfire liability under current state rules. California: California is a U.S. state with extensive regulatory oversight of investor-owned utilities, including frameworks governing wildfire prevention, liability, and compensation for affected parties. Lawmakers have recently debated reforms to these liability rules amid ongoing utility concerns about credit ratings and operational costs. Corporate Strategy: Utilities are evaluating structural options such as separations or ring-fencing to better isolate low-risk operations from wildfire-related credit discounts. Wildfire Liability: California's current liability structure for wildfires caused by utility equipment continues to expose companies to significant financial risks, prompting calls for legislative changes. Regulatory Developments: Recent legislative sessions have considered but not enacted comprehensive overhauls to wildfire liability rules affecting investor-owned utilities.