California’s biggest utility missed Wall Street by a penny but held its 2026 and 2027 outlook. For customers, the bigger story is a typical 500 kWh bill of $203.54 a month and wildfire costs that keep landing on ratepayers.
PG&E Corporation (NYSE: PCG) reported third-quarter results on Thursday, Oct. 22. Non-GAAP core earnings came to $0.41 a share ($928 million), down from $0.50 a year earlier. On a GAAP basis, earnings were $0.34 a share ($749 million), versus $0.37 (PG&E release). Revenue slipped to $6.19 billion from $6.25 billion (Form 10-Q).
Analysts had expected $0.42 a share and $6.82 billion in revenue, according to Investing.com. Shares closed at $12.98 on Thursday, Oct. 22, down 1.3%, and fell another 2.7% t
o $12.63 on Friday, Oct. 23 (StockAnalysis price history). PG&E reaffirmed full-year core EPS guidance of $1.64 to $1.66 for 2026 and $1.78 to $1.82 for 2027 (PG&E release).
Why profit fell
PG&E blamed a lower CPUC-authorized return on equity in 2026, the one-time boost in 2025 from a tax methodology change, and higher Wildfire Fund expense. Earnings on a growing rate base and lower operating costs partly offset those (PG&E release). The Wildfire Fund line rose to $141 million from $86 million, an increase of $55 million, or 64%, PG&E said in its 10-Q, mainly from accelerated amortization tied to Southern California Edison’s disclosure of a Wildfire Fund receivable related to the Eaton fire. The company says it is on track to cut non-fuel O&M 2-4%, is trimming its 2027 capital plan by $2 billion, and is running a strategic review aimed at an investment-grade rating (PG&E release).
What it means for consumers: bills and wildfire costs
There is some relief. On March 1, PG&E cut its non-CARE average residential bundled rate to 40.60 cents per kWh from 41.46 cents, mostly because recovery of 2021 and 2023 wildfire-mitigation costs ended; the new Base Services Charge, a fixed monthly charge, also lowered per-kWh rates. A typical 500 kWh non-CARE bill fell $5.14, to $203.54 a month; CARE customers saved $10.37 (PG&E rate advisory; Advice Letter 7846-E).
But California power is still expensive. EIA puts the state’s average residential price at 29.75 cents per kWh in August 2026, versus 18.16 cents nationally (EIA). The CPUC’s own Public Advocates Office says PG&E’s average residential rate is up 69% since January 2016 and names wildfire mitigation and liability among the top drivers (Cal Advocates). Customers of California’s big investor-owned utilities also pay the statewide Wildfire Fund charge, 0.591 cents per kWh in 2026, to collect $908.9 million (CPUC decision).
The fair caveat: lower O&M and a smaller 2027 capital plan could ease future rate requests, but nothing in this quarter’s release promises lower bills, and Cal Advocates warns more rate requests are pending (Cal Advocates).
What it means for investors
This was a hold-the-line quarter. Core EPS of $1.24 through nine months is ahead of last year’s $1.14, and management kept guidance (PG&E release). The risks are a lower allowed return, rising PG&E Corp. consolidated interest expense ($825 million in the quarter vs. $770 million) and wildfire exposure (10-Q). The strategic review is the wild card. PG&E says options range from ring-fencing to sales or separations, and it plans to share the outcome no later than next summer (Investing.com call transcript).
| Stu’s Take (opinion)
PG&E missed by a penny and kept its $1.64-$1.66 guidance. Fine for Wall Street. But a typical customer still pays about $203.54 a month for 500 kWh, Californians pay 29.75 cents per kWh against 18.16 cents nationally, and rates are up 69% in a decade. When the Wildfire Fund line jumps from $86 million to $141 million, ratepayers should ask who really carries the fire risk. Cutting $2 billion of capex is a start. Show me lower bills. |
Sources (accessed Oct. 23, 2026)
- PG&E Corp.: Q3 2026 results press release (Oct. 22, 2026)
- PG&E Corp.: Form 10-Q, quarter ended Sept. 30, 2026 (SEC EDGAR)
- PG&E: Electric Rate Advisory, effective March 1, 2026
- PG&E Advice Letter 7846-E to the CPUC (Feb. 27, 2026)
- CPUC Decision D.25-12-006 (Dec. 4, 2025): 2026 Wildfire Fund non-bypassable charge
- com: PG&E (PCG) stock price history (data via Tiingo)
- CPUC Public Advocates Office: Q2 2026 Electric Rates Report (July 27, 2026)
- EIA: Electric Power Monthly, Table 5.6.A (August 2026 data)
- com: PG&E shares slip on Q3 miss (Oct. 22, 2026)
- com: PG&E Q3 2026 earnings call transcript (Oct. 22, 2026)
