Latest News

PG&E's lower expenses cause it to miss first-quarter earnings estimates

PG&E's lower expenses cause it to miss first-quarter earnings estimates

PG&E Corp. missed its first-quarter profit estimate on Thursday as it was hit by higher operating expenses and interest costs.

Interest rates that are higher for longer increases the borrowing costs of utility companies. These companies need to borrow more money for their expenses, such as grid maintenance.

PG&E's interest costs rose by 2.7% in the first quarter of this year, to $734 millions.

In January, multiple wildfires scorched thousands of acres in Los Angeles. This is expected to be the costliest natural disaster in U.S. History. Electric utilities in the area have also been under increased scrutiny.

The utility expects to upgrade its wildfire safety systems and install underground powerlines for nearly 700 miles between 2025-2026.

PG&E reported that the average residential electric rate in March was lower than it had been a year before. It expects natural gas rates to stay flat until 2025.

PG&E said on a call after earnings that 90% of the equipment it sources is from domestic suppliers. It also believes its tariff exposure to be "very manageable".

LSEG data shows that the company's total revenue for the quarter was $5.98 Billion, which is less than analysts' estimates of $6.14 Billion.

Total operating expenses for the quarter ending March 31 were up 3.8% to $4.76 billion.

Oakland, California's utility announced that it has increased its data center pipeline to 8.7 gigawatts (from 5.5 GW) and added nearly 3,000 new customers to its electric grid in the last quarter.

PG&E's adjusted profit per share was 33 cents, compared to the analyst average of 34 cents. (Reporting from Bengaluru by Pooja menon; editing by Maju Sam)

(source: Reuters)