PG&E Corp (NYSE:PCG) shares fell more than 19% after California lawmakers advanced wildfire legislation that stopped short of the liability protections utility investors had been seeking.
The amended Senate Bill 492 excludes a proposal from Governor Gavin Newsom that would have blocked insurance companies from suing utilities over wildfire-related claims, raising fresh concerns about Pacific Gas and Electric Company's exposure to future disasters.
PG&E said the legislation, amended by the California Legislature, would make some progress on wildfire risk reduction and recovery but would not provide the sustainable solution the state needs.
"Specifically, the bill does not adequately address the financing risks created by California's current wildfire liability framework," the company said in a statement. "As a result, it falls short of creating the long-term durability needed to attract affordable investment to support a safer, more reliable energy system and help keep costs down for customers."
The company pointed to an April report from the California Earthquake Authority, which found that existing funding mechanisms are not sufficient. PG&E said SB 492 does not adequately address those concerns.
"California still needs a durable solution that supports wildfire survivors, maintains strong safety incentives, reduces wildfire risk, and enables the affordable investment needed to serve customers and communities safely and reliably," the company said.