Revised proposed decision from CPUC improves PG&E outlook, says Citi

Citi says the California Public Utilities Commission’s administrative law judge filed a second revised proposed decision for PG&E’s rate case related to SB410. The only change was that PG&E could request an annual cap revision for both 2025 and 2026, versus previously only 2026, the analyst tells investors in a research note. While there is no change to annual cap numbers, this slightly improves PG&E’s capex outlook, as the cap could be potentially revised upward sooner than expected, contingent on PG&E’s execution in 2024, contends Citi. The firm notes the proposed decision is up for the commission to vote tomorrow. It thinks a final decision is likely and keeps a Buy rating on PG&E with a $21 price target.