PG&E: Regulatory Proposals Suggest Constructive Outcome to 2023 Rate Review

We are reaffirming our $15 per share fair value estimate for PG&E after California regulators released two proposed decisions in PG&E's 2023-26 rate review. We are maintaining our no-moat rating. Investors should be relieved that the key debate among regulators this fall likely will be the pace of PG&E's wildfire protection investments. This is only a small part of PG&E's total four-year, $40 billion investment plan that we expect regulators will support. We continue to forecast 9% average annual earnings growth, one of the highest growth rates in the sector, assuming a final regulatory ruling that is mostly in line with the proposed decisions.