California regulators on Thursday gave Pacific Gas & Electric (PG&E) an initial green light to securitize $7.5 billion in costs related to a series of wildfires that occurred in its service territory in 2017, despite concerns from some groups about the impact to the utility’s customers.
If regulators similarly approve a financing order slated for a vote next month, PG&E can issue up to $7.5 billion of recovery bonds, which will result in a ratepayer charge of more than $394 million per year for the next 30 years. PG&E intends to reimburse customers through a shareholder-funded trust, but some groups are skeptical of that strategy.