PG&E Stock Plummets on California Wildfire Legislation. Why Wall Street Isn't Happy.
Dow Jones
Yesterday
California has left investors in the lurch after the state legislature over the weekend introduced wildfire legislation that didn't include liability protection for utilities.
PG&E stock dropped 17% to $13.80 in premarket trading on Monday as investors were selling shares of the California utility following the California State Assembly's decision to amend Senate Bill 492. PG&E, however, wasn't alone.
Fellow utility stocks Edison International and Sempra declined 8.9% and 1.5%, respectively.
The main issue for Wall Street is that the amended legislation doesn't include California Gov. Gavin Newsom's proposal that would block insurance companies from suing utilities over wildfire-related legal claims.
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