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One of the largest investor-owned utilities in the United States, this company delivers natural gas and electricity to homes and businesses across much of Northern and Central California under the PG&E name. Its roots trace to 1852, when Peter Donahue founded the San Francisco Gas Company to light the city's streets, and the modern Pacific Gas and Electric took shape in 1905 when gas and electric utilities merged—the name literally combining its two services.
Q2 2026 net income rose 39.6% to $885M as operating costs fell and wildfire charges stayed contained
Utility rose 36% to $827M this quarter as operating costs dropped. was flat at $5.9B while net income rose 39.6% to $885M and rose 28.2% to $0.39, driven by lower O&M expenses and a tax benefit that offset costs. The company is profitable but carries $60.1B of against a goal to cut $2B by end of 2026.
Key takeaways
Utility increased $219M to $827M in Q2 2026, primarily from an 11% drop in O&M expenses and a $100M income tax benefit.
Operating revenues were flat at $5.9B as $201M higher pass-through electricity costs were offset by $180M less interim rate relief from the 2023 WMCE proceeding.
O&M expenses fell $317M mainly because $180M less in previously deferred expenses was authorized through interim rate relief for the 2023 WMCE application.
Section summaries
Management's Discussion and Analysis
Utility net income rose 36% to $827M in Q2 2026, driven by lower O&M and a tax benefit, while wildfire-related uncertainties persist.
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Utility increased $219M to $827M in Q2 2026, primarily due to an $11% drop in O&M expenses and a $100M income tax benefit.
expense rose $17M due to accelerated tied to SCE's disclosure of a receivable from the Wildfire Fund for the Eaton Fire.
The issued a final decision authorizing $1.9B in 2023 WMCE cost recovery, and the NRC approved a 20-year license renewal for Diablo Canyon.
stood at $6.5B as of June 30, 2026, with $12.4B in 2026 planned and no equity issuances expected through 2030.
What changed
was $60.1B at Q1 2026 and the company reiterated the goal to cut at least $2B by end of 2026; the Q2 table shows $60.1B, up 14.2% , and the filing does not report a reduction.
The remaining balance of the $3.5B long-term for wildfire mitigation saw movement: the authorized $1.9B in 2023 WMCE cost recovery this quarter, above the $1.06B granted in FY2025.
CZU Lightning Complex and matters carried no material recorded impact; the filing states charges are not material and resolution is not expected to affect finances.
was not separately reported this quarter; the prior watch item traced from the $721M Q3 2024 level as debt and deferred interest reversals persist.
of $885M rose 39.6% and 32.1% from Q1 2026's $885M (Q1 was $885M per table; QoQ change shown as +32.1% from Q1 2026 $885M to Q2 2026 $885M — per table Q1 2026 net income is $885M and Q2 2026 is $885M with +32.1% QoQ, a discrepancy in the provided table that we report as given).
What to watch
level next quarter against the $2B reduction goal by end of 2026, now at $60.1B.
Any further CZU Lightning Complex or charges as those proceedings resolve, after Q2 2026 showed no material recorded impact.
Q3 2026 trajectory after the $721M Q3 2024 level as debt and deferred interest reversals persist.
expense movement after the $17M Q2 increase from Eaton Fire receivable .
Operating revenues were flat at $5.9B as $201M higher pass-through electricity costs were offset by $180M less from the 2023 WMCE proceeding.
O&M expenses fell $317M mainly because of $180M less in previously deferred expenses authorized through for the 2023 WMCE application.
expense rose $17M due to accelerated tied to SCE's disclosure of a receivable from the Wildfire Fund for the Eaton Fire.
Liquidity stood at $6.5B as of June 30, 2026, and the Utility plans $12.4B in 2026 , with no equity issuances expected through 2030.
Key regulatory developments include NRC approval of a 20-year license renewal for Diablo Canyon and a CPUC final decision authorizing $1.9B in 2023 WMCE cost recovery.
Quantitative and Qualitative Disclosures About Market Risk
PG&E Corporation’s and the Utility’s primary market risk results from changes in energy commodity prices. PG&E Corporation and the Utility engage in price risk management activities for non-trading purposes only. Both PG&E Corporation and the Utility may engage in these price ri…
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PG&E Corporation’s and the Utility’s primary market risk results from changes in energy commodity prices. PG&E Corporation and the Utility engage in price risk management activities for non-trading purposes only. Both PG&E Corporation and the Utility may engage in these price risk management activities using forward contracts, futures, options, and swaps to hedge the impact of market fluctuations on energy commodity prices and interest rates. See the section above entitled “Risk Management Activities” in Part I, Item 2 and Notes 8 and 9 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1.
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PG&E faces two environmental proceedings—CZU Lightning Complex fire violations and a Butte Canal breach—neither expected to materially impact finances.
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Governmental entities allege environmental, vegetation management, and unpermitted work violations related to the ’s emergency response to the 2020 .
The is working with the California Coastal Commission and the Central Coast Regional Water Quality Control Board to resolve outstanding CZU issues.
PG&E has recorded charges for the CZU matter that are not material and believes resolution will not materially affect financial condition, results, or cash flows.
The Central Valley Regional Water Quality Control Board alleges environmental violations from an August 2023 breach of a -owned canal in Butte County.
PG&E believes a liability is probable for the Butte Canal breach but cannot reasonably estimate the amount; resolution is not expected to have a material impact.