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Analysts Cut PG&E Targets Over SB492 Liability Gap

9/1/2026

35 6 Full Breakdown

Summary

PG&E Downgraded

Wells Fargo downgraded PG&E to Equal Weight and cut its price target to $24.
BMO Capital Markets lowered PG&E’s target to $21, changed rating to Market Perform.
Both analysts cited SB492’s missing $6 billion per-event liability cap as a downgrade catalyst.
BMO now assumes uncapped wildfire liabilities beyond 2030, increasing valuation drag to $10 per share.
PG&E shares traded at $16.60 on Aug. 28, down from recent high-teens.

Summary

Newsom Halts Plan

Gov. Gavin Newsom withdrew his plan to shift wildfire costs onto insurers, accepting a narrower deal.
The deal bans private-equity firms from buying wildfire claims.
It also bars utility CEOs from receiving bonuses after fatal fires.
The fast-pay program will validate claims within 60 days and offer settlements within 30 days.
Eaton Fire survivors protested at the governor’s mansion demanding shareholder liability.

History

Historical Context

The November 2018 Camp Fire, ignited by Pacific Gas & Electric equipment, razed Paradise, killing 85 people, destroying 18,804 structures and causing $16.5 billion in damage during California’s deadliest wildfire season. In response, Governor Jerry Brown signed Senate Bill 901 in 2019, capping utility liability at $6 billion per event, a limit now cited by analysts assessing PG&E’s financial risk.

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PG&E Downgraded

Wells Fargo downgraded PG&E to Equal Weight and cut its price target to $24.
BMO Capital Markets lowered PG&E’s target to $21, changed rating to Market Perform.
Both analysts cited SB492’s missing $6 billion per-event liability cap as a downgrade catalyst.
BMO now assumes uncapped wildfire liabilities beyond 2030, increasing valuation drag to $10 per share.
PG&E shares traded at $16.60 on Aug. 28, down from recent high-teens.

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