PG&E's Q2 2025: Key Contradictions on Wildfire Funding, Data Centers, and Investor Confidence

Wildfire fund contribution and AB 1054 implications, data center opportunities and impact on affordability, wildfire funding and investor capital, data center load ramp time are the key contradictions discussed in PG&E Corporation's latest 2025Q2 earnings call.



Earnings and Financial Guidance:
- PG&E reported core earnings per share of $0.31 for Q2 and $0.54 for the first half of 2025, with a full-year guidance range of $1.48 to $1.52, up 10% over 2024.
- The company reaffirmed its financial guidance despite legislative uncertainties, expressing confidence in its internal plan and ability to meet targets.

Wildfire Risk and Legislative Proposals:
- PG&E highlighted the need for improvements in the AB 1054 wildfire construct and affordable legislative solutions for customers.
- The company is focused on a comprehensive societal approach to wildfire risk, emphasizing the need for insurance market reform, building codes, and claims limitations.

Data Center and Load Growth:
- PG&E's data center pipeline increased to 10 gigawatts, representing more than 50 projects, with a nearly 3x increase since last year.
- The company's focus on beneficial load growth is expected to reduce electric bills by 1% to 2%, contributing significantly to customer affordability.

Operational Efficiency and O&M Reduction:
- PG&E aims for annual nonfuel O&M cost reductions exceeding $200 million in 2022, 2023, and 2024, with a target of continuing this trend.
- The company is implementing AI and streamlining processes to enhance operational efficiency and reduce costs.