PG&E launches review, defers $2 billion in spending after wildfire bill setback

Sept 2 (Reuters) - Utility PG&E said on Wednesday it will defer about $2 billion in ‌2027 spending, leaving a capital plan of ‌about $11.4 billion, as it launches a strategic review amid ​wildfire liability concerns.

The review comes as PG&E faces renewed uncertainty over liability costs after a Senate bill amendment did little to reduce utilities' exposure ‌to expenses related ⁠to the fires or address the long-term solvency of California's fund for ⁠it.

The company had previously planned to spend $13.4 billion in 2027.

"California's wildfire liability framework continues to create ​financing risks ​that drive higher ​costs, affect customer affordability, ‌and limit investment in the energy system," CEO Patti Poppe said.

"Something has to change so that we can better serve our customers."

PG&E said the review is aimed to help reduce customer ‌costs associated with higher financing ​expenses, adding that its ​debt financing needs ​would be reduced by $2 billion.

The review ‌will evaluate the full range ​of regulatory, ​financial, operational and strategic alternatives reasonably available, including the full range of options related ​to how ‌the company is organized and financed.

(Reporting by ​Vallari Srivastava in Bengaluru; Editing by Anil ​D'Silva and Leroy Leo)