PG&E faces significant wildfire-related liabilities, including potential losses exceeding insurance coverage. Uncertainties exist regarding rate recovery for wildfire mitigation costs and other regulatory proceedings. The company's substantial debt and fluctuating energy commodity prices also pose risks. Litigation, including securities claims and investigations, adds to the financial uncertainty. Tax audits and potential limitations on tax attributes are also noted risks.
Financial Upside
PG&E anticipates increased operating revenues from authorized rate increases and interim rate relief. The company expects cost savings from operating efficiency improvements and potentially favorable outcomes in ongoing ratemaking proceedings. Proceeds from debt issuances and loan forgiveness/disbursements are also potential sources of financial benefit. The Wildfire Fund and insurance recoveries offer some mitigation of wildfire-related risks.
