What Happened to Pacific Gas and Electric Company (PG&E)?

Pacific Gas and Electric Company (PG&E) has a long and complex history, incorporated in 1905 through the merger of several predecessor utility companies, growing to become one of the largest electric utility businesses in the United States. For decades, it played a pivotal role in California's development, building extensive hydroelectric power systems and, later, nuclear facilities like the Diablo Canyon Power Plant.

The company's trajectory dramatically shifted in the late 2010s due to a series of devastating wildfires. California's inverse condemnation law holds utilities financially responsible for fires caused by their equipment, even if they followed maintenance guidelines. This legal framework, combined with an aging infrastructure and increasingly severe climate conditions, led to PG&E equipment being implicated in major fires such as the 2017 Northern California wildfires and the 2018 Camp Fire, which resulted in billions of dollars in liabilities and over 100 deaths. Facing an estimated $30 billion in potential liabilities, PG&E Corporation and its primary operating subsidiary filed for Chapter 11 bankruptcy protection on January 29, 2019.

The bankruptcy process was contentious, involving negotiations with wildfire victims, bondholders, and state regulators. PG&E emerged from bankruptcy on July 1, 2020, after its reorganization plan, which included a $25.5 billion settlement for wildfire victims and a commitment to significant safety improvements, was approved by the California Public Utilities Commission (CPUC). A key consequence of the bankruptcy and ongoing wildfire threat has been a massive investment in wildfire mitigation and grid modernization. PG&E's 2026-2028 Wildfire Mitigation Plan, submitted in April 2025 and approved in February 2026, outlines efforts to underground nearly 1,100 miles of power lines, strengthen overhead lines, and implement Enhanced Powerline Safety Settings (EPSS) to rapidly shut off power when a threat is detected.

As of April 2026, PG&E is navigating a dynamic energy landscape. The company announced a significant leadership restructuring effective January 1, 2026, with Sumeet Singh becoming CEO of Pacific Gas and Electric Company, while Patti Poppe remains CEO of PG&E Corporation. Furthermore, PG&E is undertaking a substantial $73 billion capital expenditure program through 2030, primarily to modernize its grid and address an unprecedented surge in electricity demand from artificial intelligence (AI) data centers, which are projected to add up to 10 gigawatts of new load in its service territory. The company is also implementing a new Base Services Charge on electric bills starting March 2026, alongside lower per kWh rates, a change mandated by the CPUC. In a notable recent development, on April 20, 2026, PG&E and Tesla announced the approval of the Tesla Cybertruck and Powershare equipment for PG&E's residential Vehicle-to-Everything (V2X) program, allowing customers to power homes during outages and potentially sell electricity back to the grid.