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Bond Market News
PG&E and Edison’s Dollar Bonds Slip on Wildfire Liabilities Concerns
September 1, 2026
-Vandit P
PG&E Corp. and Edison International’s dollar bonds slipped across the curve after California lawmakers rejected the Governor’s proposal to shield publicly traded utilities from wildfire liabilities. The market reaction followed the introduction of a new wildfire-response bill which would retain utilities’ exposure to potential insurance claims arising from wildfires. The proposal had sought to prevent insurers from pursuing utilities through subrogation, a process that allows insurers to recover payouts from parties deemed responsible for losses. Investors and analysts had viewed the proposal as an important measure to reduce the financial risks facing California’s utilities as climate change increases the frequency and severity of wildfires.
Lawmakers opposed eliminating subrogation partly because they feared insurers would respond by raising premiums, adding to already elevated living costs for residents. Instead, the proposed legislation would prevent insurers from selling wildfire claims against utilities to investors and would restrict bonuses for executives at utility companies found liable for catastrophic fires. It would also establish a program to accelerate compensation to wildfire victims and strengthen wildfire-prevention efforts. California lawmakers are expected to vote on the bill Tuesday.
PG&E’s 5% 2028s dropped by 0.7 points to 98.4, yielding 5.9%. Edison’s 6.95% 2029s slipped by 0.3 points to 103.4, yielding 5.7%
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