SACRAMENTO – November 02, 2026 -- Consumer Watchdog accused PG&E of using a threatened $2 billion delay in 2027 infrastructure investments, including electricity connections for 25,000 customers, as pressure on California lawmakers to weaken wildfire liability laws.
The advocacy group said the utility announced the cuts immediately after the Legislature declined to grant additional wildfire liability limits. PG&E is blaming lawmakers for its financing problems and warning that housing developments, renewable energy projects and other customers face delays.
PG&E's CEO letter shows connections average 118 days against a 182-day state target
A letter from CEO Patti Poppe to the Assembly Utilities and Energy Committee undercuts the company's warning of interconnection delays of up to six months, Consumer Watchdog said. Poppe acknowledged that PG&E completes new service connections in an average of 118 days, well below the California Public Utilities Commission (CPUC) target of 182 days. She also confirmed that PG&E expects to keep meeting applicable state energization requirements even with the proposed delays.
Consumer Watchdog's Jamie Court said the threats amount to "crying wolf" and described the move as a short-term tactic to win a legislative bailout.
CPUC's Public Advocates Office challenges the $2 billion reduction in a filing
On October 23, the Public Advocates Office filed a motion arguing that the $2 billion reduction makes PG&E's proposed 2027 revenue requirement overstated and that the utility must file a new plan. The office urged the CPUC to shield customers from paying rates based on work PG&E no longer plans to perform.
The CPUC is also weighing up to $456 million in interim rate recovery for PG&E starting January 1, 2027, ahead of a final decision in the utility's general rate case. PG&E still plans to spend $11.4 billion on capital projects in 2027.
Applicants already fund many connection costs, and PG&E has not itemized the deferred work
Under PG&E's construction requirements, developers and customers requesting new service cover applicable connection costs. These include engineering, administration, construction materials, installation labor and the work needed to connect new facilities to the grid. Applicants must pay advances before construction begins and can hire qualified contractors to build infrastructure themselves.
Renewable developers initially finance certain interconnection facilities and grid upgrades under generator interconnection agreements, although some advances are later reimbursed. Consumer Watchdog said PG&E has not publicly provided a project-by-project accounting showing how much of the deferred work is already funded or financially secured by applicants.
Duty-to-serve rules could restrict dividends to PG&E's holding company
Consumer Watchdog said PG&E has a legal duty to serve customers. If it fails, it can be barred from upstreaming dividends to its holding company, which must then finance the services the utility fails to provide. The group and Every Fire Survivor's Network recently wrote to state officials about this duty, citing CPUC Decision D.02-01-039.
Bankruptcy-era investment record anchors the group's critique
PG&E filed for bankruptcy in 2019 under billions of dollars in wildfire liabilities, yet continued investing billions in its infrastructure without a major collapse in capital spending, according to Consumer Watchdog. Organizing director Alex Nagy said the utility cannot claim it is unable to complete planned projects while seeking rate increases based on spending forecasts that no longer reflect its plans.
Consumer Watchdog said California should not reward threats to delay electricity service with another wildfire liability bailout, and that the CPUC must enforce PG&E's obligations to customers.