California, Oakland: PG&E Corporation has announced a sweeping $73 B capital investment plan through 2030, marking a $10 B increase over its previous five-year framework. The plan focuses on strengthening transmission infrastructure, improving wildfire resilience, and supporting California’s growing electricity demand amid rapid electrification and data centre expansion.
PG&E expects to invest $12.9 B in capital projects this year, up from $10.6 B in 2024, as part of a broader $63 B (2024–2028) programme covering transmission and system upgrades. Under the new plan, the company’s rate base is projected to rise from $69 B today to $106 B by 2030.
A key change is the shift in spending oversight, with the Federal Energy Regulatory Commission (FERC) now governing roughly $20 B of the planned investments, reflecting “bread-and-butter” transmission and substation projects. CEO Patti Poppe said the plan reflects PG&E’s long-standing need to modernize grid assets for reliability and safety.
“There is a lot of certainty to that FERC investment,” Poppe said. “It’s driven by customer needs and system requirements rather than regulatory appetite.”
The announcement follows California’s creation of an $18 B wildfire insurance fund, designed to supplement an existing $21 billion pool. PG&E will contribute $145 M annually to the new fund. Poppe emphasized that the utility’s next policy steps will centre on home and community hardening, a crucial strategy for reducing wildfire spread and addressing the state’s housing and insurance crises.
PG&E’s shares (NYSE: PCG) rose slightly to $15.06 following the announcement but remain down over 10% in the past six months, leaving the company with a market capitalization of around $33 B.
Source: T&D World
