California Utilities Seek Higher ROE Due to Fire Risks
April 22 2019 - 7:58PM
Dow Jones News
By Josh Beckerman
PG&E Corp.'s (PCG) Pacific Gas & Electric Co. and Edison
International's (EIX) Southern California Edison are seeking a
higher return on equity as they deal with issues include wildfire
risks, according to cost-of-capital proposals filed Monday.
Pacific Gas & Electric said it expects to fund up to $28
billion in energy infrastructure investments over the next four
years. The utility's proposal filed with the California Public
Utilities Commission calls for increasing return on equity to 16%
from 10.25%.
Southern California Edison is seeking a 10.6% base return on
common equity, compared with 10.3% currently, plus an additional
ROE of 6% to "compensate investors for the higher risks associated
with uncertain state policies for utility cost recovery and
liability" from California's wildfires.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
April 22, 2019 19:43 ET (23:43 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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