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PG&E increases its core earnings forecast for 2025 on the basis of higher electricity rates

PG&E Corp. raised its core earnings forecast on Thursday, benefiting from lower operating costs and higher electricity prices.

California Public Utilities Commission has approved an additional request for the company to increase electricity prices. This follows a similar approval last year.

The utility reported a 10.5% rate base increase in 2024.

U.S. Electric utilities are pushing to increase rates, due to the increasing demand for grids from industries like transportation, data centers, and manufacturers.

The company reported that it would add nearly 14,000 additional customers to its electric grid in 2024.

Patti Poppe, CEO of PG&E Corporation, said that "in 2024 we will connect more new customers to the grid than in previous decades."

In February, the company's data center pipeline had increased by two gigawatts (GW) since July of last year.

PG&E, the parent company of Pacific Gas and Electric Company (PG&E), is an energy company serving 16 million Californians in a 70,000 square mile service area.

Oakland, California based company increased its forecast for full-year adjusted core earnings per share to between $1.48 to $1.52, up from previously $1.47 to $1.51. According to data compiled from LSEG, analysts expect earnings per share of $1.49.

In 2024 the company's operating costs will be down 8.3%, to $19.96 Billion, compared to last.

PG&E's adjusted core profit for the fourth quarter was 31 cents per common share. This is in line with analyst estimates.

The company's shares rose by 1% during premarket trading. (Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli)

(source: Reuters)