PCG - PG&E outlines new $18B program to cut wildfire risk

2023-03-28 09:57:39 ET

PG&E ( NYSE: PCG ) plans to spend $18B in wildfire prevention through 2025, it said late Monday in its new Wildfire Mitigation Plan submitted to California's Office of Energy Infrastructure Safety.

The WMP outlines critical layers of protection to reduce wildfire ignition risk and strengthen PG&E's ( PCG ) electric grid, including stronger poles and covered powerlines, the company's 10K-mile undergrounding program, tree trimming and removal, and inspections and repairs.

The plan also introduced new technologies such as partial voltage detection and downed conductor technology, intended to detect potential threats to the electric grid and rapidly reduce or shut off power to help prevent wildfire ignitions.

PG&E ( PCG ), whose transmission lines have been blamed for some of California's biggest fires in recent years, said it has already taken steps to reduce its wildfire risk by more than 90% .

Edison International's ( NYSE: EIX ) Southern California Edison also filed a wildfire prevention proposal with the state on Monday, saying it has cut the probability of wildfires caused by its equipment by as much as 80% since 2018.

With dividends expected to be reinstated later this year, PG&E ( PCG ) shares remain undervalued, Mike Zaccardi writes in an analysis posted recently on Seeking Alpha .

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