SAN FRANCISCO, September 1, 2026, 11:45 PDT — Shares in PG&E gained 3.7% after lawmakers approved wildfire funding legislation that failed to fully cover the company’s financing needs.
- PG&E shares rose 3.7% to $13.77 at 14:33:56 EDT.
- The rebound represented only 14.9% of the $3.33 drop seen on Monday.
- BofA cut its rating to Neutral and trimmed its price target to $13.
- California’s SB 492 has progressed to a third reading in the Assembly.
PG&E Corporation NYSE:PCG shares rose 3.7% to $13.77 on Tuesday. Volume reached 85.1 million shares by 14:33:56 EDT. The stock had fallen 20.1% on Monday Yahoo Finance.
The recovery recouped just $0.50 following a $3.33 decline on Monday, amounting to 14.9% of the prior session’s losses. Investors are still worried about a funding gap in California’s latest wildfire legislation.
PG&E intraday: late spike fades
NYSE price in U.S. dollars; dashed line is Monday’s $13.27 close.
BofA Securities downgraded PG&E to Neutral from Buy and cut its price target to $13 from $24. The new target sits 5.6% below the stock’s closing price on Tuesday MT Newswires via Yahoo Finance.
BofA said PG&E characterized the bill as insufficiently durable to support capital access and affordable customer bills. The bank reduced total capacity and new-business investment by $7.3 billion from approximately $23 billion. Its model left spending on safety and reliability unchanged.
Wildfire-policy shock: one bounce, much damage left
Session returns from August 31 and September 1; net change uses August 28 close.
Prices as of 14:33:56 EDT on September 1. Source: Yahoo Finance.
The gap between peers stands out. Edison International NYSE:EIX shares climbed 5.3% on Tuesday, yet remained 19.0% down across the previous two sessions. Sempra NYSE:SRE declined 0.9% over the same timeframe.
According to legislative records from California, SB 492 was amended on August 29. The Assembly received the bill for a third reading on August 30 California Legislature status. The next main step is the floor vote.
The bill aims to increase bonding powers for the Continuation Account in the Wildfire Fund, while also creating a swift claims payment system. Bank of America argues that these provisions do not comprehensively resolve larger concerns around liability and financial backing official bill text.
PG&E’s fiscal projections underscore the importance of the vote. The utility intends to invest $73 billion between 2026 and 2030 under its capital plan. Executives said the plan assumes wildfire-liability reform passes in their favor second-quarter presentation.
Financing risk reaches both spending and valuation
The bank’s modeled investment cut equals one-tenth of PG&E’s five-year plan.
2026–2030 capital plan
BofA target reset
Sources: PG&E, BofA report carried by Yahoo Finance; market price at 14:33:56 EDT.
The company remains profitable. Non-GAAP core earnings per share rose to $0.40 in the second quarter, compared to $0.31 previously. PG&E kept its 2026 core EPS guidance unchanged at $1.64 to $1.66 company results.
Nonetheless, the present stock valuation has already priced in this outlook. On Tuesday, shares were at $13.77, equating to about 7.6 times the forward EPS estimate of $1.80 from Yahoo Finance. This earnings multiple offers little protection if financing costs rise.
Risks: Changes introduced by the Assembly could either reinforce or weaken the overall package. Issues including wildfire claims, regulatory rejections, and adjustments in credit ratings may influence funding needs. Should the measure not pass, the current framework would stay in place.
The next challenge is political, not operational. Investors will be watching the Assembly floor and looking for any deal in the Senate. At this stage, Tuesday’s rally signals partial relief rather than a complete turnaround.
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