01—Abstract
Summary
Summary of the 10-Q filed October 22, 2026. Cited figures are marked; the original filing is the authoritative source.
PG&E Corporation and Pacific Gas and Electric Company reported income available to common shareholders of $749 milliona for the third quarter of 2026, compared with $823 million a year earlier, a decline the filing shows as 9%.
For the nine months, income available to common shareholders was $2.34 billionb, up from $1.95 billion, a 20% increase. The Utility's operating and maintenance costs and Wildfire Fund expense were key drivers, including accelerated amortization of the Wildfire Fund asset tied to SCE's disclosed Eaton fire receivable. Consolidated net income for the nine months was $2.42 billion.
The most significant development for investors is the strategic review announced on September 2, 2026. The company is reducing planned 2027 capital expenditures from $13.4 billion to $11.4 billionc and has withdrawn its previously disclosed 2028 through 2030 capital expenditure forecast. The review covers the full range of regulatory, financial, operational and strategic alternatives, including how the company is organized and financed, and securing an investment-grade credit rating is described as a foundational objective.
The Utility's unsecured credit rating remains below investment grade with one major agency, and the company does not expect any equity issuances through 2030. Regulatory and wildfire matters remain central. On September 18, 2026, the CPUC issued a proposed decision in Track 1 of the wildfire and gas safety cost recovery proceeding that would authorize about $1.8 billiond of recorded costs and disallow about $477 million.
A 2027 general rate case proposed decision would allow $456 million in interim rate recovery effective January 1, 2027. The company has accrued $2.25 billion for the 2021 Dixie fire and $475 million for the 2022 Mosquito fire before available recoveries, and the California Legislature ended its 2025-2026 session without modifying the state's wildfire liability framework.
02—Key points
Key Highlights
- Income available to common shareholders was $749 million in the third quarter of 2026 versus $823 million in 2025 (a 9% decrease), and $2.34 billion for the nine months versus $1.95 billion (a 20% increase).
- Strategic review announced September 2, 2026: 2027 planned capital expenditures reduced from $13.4 billion to $11.4 billion, and the 2028 through 2030 capital expenditure forecast withdrawn. The Utility forecasts $12.4 billion of capital expenditures in 2026.
- Wildfire Fund asset may be accelerated: the company could reduce the estimated life to zero and incur up to $3.7 billion of accelerated amortization following SCE's $1.6 billion of probable Eaton fire losses and $645 million Wildfire Fund receivable. Wildfire Fund expense was $141 million in the third quarter versus $86 million.
- Liquidity of approximately $5.8 billion as of September 30, 2026, including $4.9 billion of revolving credit facility availability.
- Wildfire liabilities accrued: $2.25 billion aggregate for the 2021 Dixie fire and $475 million for the 2022 Mosquito fire, both before available recoveries. Probable recoveries total $2.41 billion for Dixie and $556 million for Mosquito.
- 2023 WMCE final decision authorized $1.9 billion of costs in February 2026; rehearing was denied in August 2026 and the decision was appealed in September 2026.
- Proposed 10-year Electrical Undergrounding Plan for 2028 through 2037 filed September 30, 2026, with an estimated $16.6 billion of capital expenditures if fully approved.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 22, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $6.19B$6.25B | −1.0% |
| Operating Income | $1.25B$1.21B | +3.3% |
| Net Income | $776.00M$850.00M | −8.7% |
| EPS (Basic) | $0.34$0.37 | −8.1% |
| EPS (Diluted) | $0.34$0.37 | −8.1% |
| Shares Outstanding (Basic) | 2.20B2.20B | +0.2% |
| Shares Outstanding (Diluted) | 2.29B2.28B | +0.2% |
05—Questions
Frequently Asked Questions
Why did third-quarter earnings decline while nine-month earnings rose?
The filing shows third-quarter income available to common shareholders of $749 million versus $823 million, with higher Wildfire Fund expense from accelerated amortization tied to the Eaton fire and higher interest expense of $825 million at PG&E Corporation versus $770 million. For the nine months, the increase to $2.34 billion from $1.95 billion reflects higher revenues, including about $650 million authorized in the 2023 WMCE final decision, partly offset by related costs and lower interim rate relief.
What does the strategic review mean for future capital spending and financing?
The company reduced its 2027 capital expenditure plan to $11.4 billion from $13.4 billion and withdrew its 2028 through 2030 forecast. The review may result in further changes to planned capital expenditures and could alter how the company is organized and financed. The company does not expect any equity issuances through 2030, and securing an investment-grade credit rating is a foundational objective of the review.
How much wildfire exposure remains, and how might it be recovered?
Accrued liabilities are $2.25 billion for the 2021 Dixie fire and $475 million for the 2022 Mosquito fire, before recoveries. Recoveries include insurance, FERC transmission rates, regulatory assets under the WEMA, and the Wildfire Fund. The company notes that recoveries above the $1.0 billion threshold depend on Wildfire Fund or Continuation Account funds being available and on demonstrating costs were just and reasonable, and it could face a maximum disallowance of about $5.1 billion for 2026 under SB 254.
What regulatory decisions could affect near-term cash flows and earnings?
The CPUC proposed decision on the Track 1 wildfire mitigation cost recovery application would authorize about $1.8 billion of recorded costs but disallow about $477 million, including about $291 million of capital expenditures to be excluded from rate base. The 2027 general rate case proposed decision would allow $456 million of interim rate recovery effective January 1, 2027, and the CPUC could vote as early as October 29, 2026. The Kincade and Dixie AB 1054 proposed decision is expected by November 2026.
06—Continue