In a notable financial achievement, PG&E Corp (NYSE:PCG) announced Thursday that its fourth-quarter profits surpassed analyst estimates, propelled by heightened rates for its electric and natural gas services.
The California Public Utilities Commission’s (CPUC) decision in December to approve the alternate proposed decision (APD) resulted in a substantial uptick in prices for customers, with a nearly 13% increase in the company’s General Rate Case.
General Rate Case (GRC) proceedings serve as a mechanism for utility companies to enhance consumer electricity prices. These proceedings are initiated by utility firms with utility commissions when facing a revenue shortfall, seeking rate adjustments based on the overall cost of service provision.
On an adjusted basis, PG&E reported earnings of 47 cents per share, exceeding analysts’ projections of 45 cents per share, as indicated by LSEG data.
Moreover, PG&E revised its 2024 adjusted core earnings forecast to $1.33 – $1.37 per share, compared to the previously anticipated range of $1.31-$1.35 per share.
In response to this positive financial outlook, shares of the company experienced a 1% increase in premarket trading.
PG&E serves as the parent company of Pacific Gas and Electric Company, an energy provider catering to 16 million Californians across a vast 70,000-square-mile service region spanning Northern and Central California.
Historically, PG&E has faced scrutiny due to its association with major wildfires, resulting in fines and bankruptcy proceedings. However, the company emerged from bankruptcy in 2020.
PG&E CEO Patti Poppe highlighted the company’s progress in 2023, emphasizing achievements such as further reductions in wildfire ignitions and significant advancements in powerline burial, all while achieving noteworthy non-fuel operating and maintenance cost savings exceeding 5%.
Featured Image: Freepik
Author Faith Yakubu 
