PG&E Corp

PG&E Corporation operates California's largest electric and natural gas utility, serving over 16 million people across a vast Northern and Central California territory. Its nuclear arm centers on the Diablo Canyon Power Plant, the state's sole remaining nuclear facility with two reactors producing about 9% of California's electricity and 20% of its carbon-free power. Amid the nuclear renaissance driven by surging demand for reliable, low-carbon baseload energy from AI data centers and electrification, Diablo Canyon's 2022 extension to 2029-2030—secured via a $1.4 billion state loan and federal backing—bolsters grid stability amid retiring fossil plants and variable renewables, positioning PG&E as a key player in maintaining California's energy security.

In the past year, PG&E repaid $2.5 billion of its Diablo Canyon loan ahead of schedule in July 2024, advancing toward full repayment by 2026, while advancing seismic upgrades and dry cask storage. It also settled a $117 million wildfire liability in June 2024 and issued $2.4 billion in bonds for infrastructure. Key risks include regulatory hurdles for further life extensions beyond 2030, amid anti-nuclear sentiment; wildfire liabilities from its grid sparking blazes, with $15.6 billion in claims pending; escalating costs from $30 billion in planned capital spending; and exposure to volatile California electricity prices and drought impacts on hydro assets.

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