저자: PattiPoppe · 외국인
요약 보기
PG&E CEO 패티 포프는 캘리포니아주 산불 책임 개혁 합의안의 붕괴가 3일 동안 공익기업 주가를 약 20% 끌어내렸다고 말하며, 이것이 투자등급 신용등급 획득과 부채 조달 비용 절감에 걸림돌이 된다고 밝혔습니다. 그는 운영 안전성과 신뢰성이 개선되었다고 주장하며, 그 근거로 4년간 대형 산불 없음, 요금 인하 5회, 신뢰성 30% 향상을 들었습니다. 또한 6억 달러의 부채 절감 효과와 자본지출 20억 달러 축소(114억 달러 계획으로 조정)는 입법부가 타깃형 개선안을 통과시키는지에 달려 있다고 말했습니다. 포프는 특별회기가 열리면 법안이 다시 살아날 수 있다고 전망했으며, 표결 전 72시간 전 공표 요건이 있다고 덧붙였습니다.
다듬은 글
Wow, it's been a tough week for those who own shares of California electric power companies. Last weekend, an agreement to reform the procedure for liability for forest fires fell apart. This has caused shares of companies like PG&E and Edison International to fall by about 20% in the last 3 days. Now, if a regulated utility in California causes a wildfire through its power lines.
She may be held liable and required to pay large financial penalties, even if she has insurance. The law allows insurance companies to file lawsuits against utilities to recover funds paid out. Utilities were trying to limit the amount of payments, and it seemed they would be able to get it through the legislature.
But then, I don't know, at the last minute the deal fell apart. It is unclear now what will happen next. This morning, PG&E, the Northern California gas and electric company, said it was exploring strategic alternatives. They also announced that they would cut capital spending next year. Not security costs, but capital expenditures.
So what's going on here? Is it possible that stocks are worth buying during a downturn? Let's talk to Patty Poppy. She is the CEO of PG&E to sort out the situation. Ms. Poppy, welcome back to "Mad Money." Thank you, Jim Kramer. Nice to be with you, as always. So, Patty, you know, as I was contacting you this weekend, it was really hard for me to understand this.
I also think it's very unfair, but let's leave that aside. Perhaps you can explain the crux of the problem with wildfire liability reform so we at least know what's going on. Yes. So, this forest fire reform has been two years in the making. A report outlining the problem was commissioned by the governor a year ago, and everyone agrees that the cost of the current fire liability system to our customers is too high.
So, because this cost is too high, reforms were possible. A few lines of text in the proposed law would change everything for the better for my clients. And it fell apart. Well, I know you have been incredibly diligent in restoring your company's balance sheet, as well as resolving the fire issues and providing lower costs for your customers.
I'm trying to understand: first, why might you be affected by this, when it seems like you're doing everything right, and second, what can be achieved by a strategic review? Yes, you're right, Jim. We've done the hardest part. We have done real work transforming this company. We have been in the process of a large-scale transformation for six years, during which we have significantly reduced the risks of forest fires.
This is our fourth year without major wildfires. We have reduced tariffs five times in the last two years. We have increased reliability by 30%. So we need this accountability reform to unlock value and attract capital from the markets. If investors and banks see too high a risk, they demand more or don't buy the stock at all.
In fact, all that is needed are very targeted changes to the current legislative framework that will change everything for our clients. Our debt costs are too high, in part because we paved a real path to investment-grade growth by emerging from bankruptcy six years ago. We were moving towards obtaining investment credit ratings and were almost there , but we were stuck waiting for this legislative work to be completed .
This would save my clients $600 million in just the last two years of debt issuance . This is real savings for customers. This is a matter of simple legislative change, and we are counting on legislators to take these measures. So, what does the reduction in capital expenditures mean for 2027? Yes. Today we announced our strategic review, as well as a $2 billion capital reduction.
After this $ 2 billion reduction, we are left with a capital plan of $11.4 billion. So, it's not zero. We are not going down to zero, but we have reduced the amount by $2 billion. And this will delay the start of housing construction. This will delay the connection of renewable energy sources to the grid.
This will delay our connections of new and growing capacity here in California. California is growing. And we provide it with energy. And we need access to cheap loans and quality investors to make this possible . And look, we're not done yet. Speaker Rivas suspended the bill yesterday, as you suggested.
He said they wanted to get back to work. They scheduled several hearings. Governor Newsom insists that this work must be done. We truly hope they can return to negotiations and close the case for our clients. The people of California are waiting. Did they know how you transferred all those shares into a trust and did that?
You had to hurt the shareholders. There was nothing you could do. You explained very clearly what would happen. So no one could come and say, "I'm shocked ." Because you laid everything out clearly. But I thought you had already done all the hard work. We have done the hard work. You're right, Jim Kramer.
We have done the hard work. Look, the fundamentals of this company have never been better. Our foundation: operational safety, fire safety , reliability, availability. This structure exists. My people did everything for California. Now we need the legislature to finish the job so we can take it to the next level and let this horse out of the stable.
We have a great company serving Californians, and we just need a simple legislative solution to make it happen . There were four who downgraded the stock. I guess they just feel...I can't understand it because, you know, I wanted to say, "Just buy them." But I spent a lot of time on it myself , and then I came back and said, " I really hope Patti gets this." I really believe the governor supports this, but this California legislature has been very difficult to understand since the day I followed it as a reporter in 1978.
Well, look, they've done a lot of hard work in the past years. They have created an industry-leading wildfire liability structure. But there is a real residual risk that has spooked investors, and it can be fixed. This risk can be eliminated and the liquidity issue resolved with a few simple wordings, a simple fix .
The current legislature must build on the work of the past. The governor led this process for eight years. I know he was clear. The California Earthquake Authority report was clear. Our CPU was clear. Everyone agrees that the status quo is not working for customers. Let's do this, and then investors will be the beneficiaries of unlocking this value for customers, lowering rates, making our debt cheaper, and achieving investment grade once and for all.
OK. And tell our viewers what it means to be investment grade . What will this allow you to do? This would allow us to put that $2 billion back into the plan. This would allow us to increase profits by 9% or more every year. This would allow us to continue to increase our dividends. This would allow us to become one of the leading utility companies in the world.
I serve some of the best and smartest clients. Yes. I serve Northern California, the Bay Area, Silicon Valley, the Central Valley, the great breadbasket of the world. I own the Diablo Canyon Nuclear Power Plant . I know this is one of your favorite places. My favorite. I was there when I was appointed.
All these resources are waiting, they are like trapped. You know, we're like a racehorse in the stable waiting to start serving Californians at a lower cost, with greater reliability and safety, but we need to finally address this legislative framework. Well, you are a good fit for me because you are a reliable person in the utilities sector since the CMS days.
Um, regarding data centers, do you still have...I know you had a place for them. I know that if done right, it can't be bad. It's just that many are not as smart as you and didn't know how to benefit other ratepayers. How are you doing with this? Everything is going great. We have a plan for 2030 of 1.8 gigawatts.
This has been maintained despite the reduction in capital expenditure. Although capital expenditure cuts will slow the uptake of this beneficial load growth. This is simple pricing. It's a simple pricing issue, Jim, regarding data centers. If you set the right price, it can be beneficial for all other payers.
We have set the correct prices in California. We have capacity in the network, ready to go. Now we need to make sure we have a base of accountability that will allow us to raise capital for this great work we love, bring on new customers, and keep rates low for everyone. Just make sure that this is exactly what we are talking about in the context of wildfire legislation.
This could literally be happening right now. Maybe something will happen tomorrow, right? Just because the legislature is closed doesn't mean it's all over. They can call a special session. They can call a special session. I hope they do . This will take a couple of days because the bill must be published 72 hours before the vote.
But it will be a good signal to investors that if this draft law is published and meets the minimum requirements, the probability of its adoption will become very high. But first they need to print something, and then call a special session and make sure we complete this work. We are so close. We are so close.
And I just think that under the leadership of Gavin Newsom and Speaker Rivas, they will really be able to get things right for our utility customers. I've been following your career. I've been following your career all along. I have been following your career since you took over this company, saved it, and helped customers save a lot of money.
I have to believe they'll let you in. They are obligated to let you in. This is Patty Poppy, CEO of PG&D Corp. Patty, thank you so much for taking the time to speak. Thank you, Jim. We are always there for our customers. They are the ones who should win. Our customers must win. So, we're back after the break.
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