{"id":23426,"date":"2025-04-24T17:23:08","date_gmt":"2025-04-24T17:23:08","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=821250"},"modified":"2025-04-24T17:23:08","modified_gmt":"2025-04-24T17:23:08","slug":"pge-misses-1q-profit-estimates-on-higher-expenses-la-wildfire-worries-linger","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2025\/04\/24\/pge-misses-1q-profit-estimates-on-higher-expenses-la-wildfire-worries-linger\/","title":{"rendered":"PG&amp;E Misses 1Q Profit Estimates on Higher Expenses, LA Wildfire Worries Linger"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/img\/social\/opengraph\/ij-social-wildfire-1200x630.png\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/04\/24\/821250.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/04\/24\/821250.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p class=\"reuters\">PG&amp;E Corp. missed first-quarter profit estimates on Thursday, as the power company was hurt by higher operating and interest expenses.<\/p>\n<p>Higher-for-longer interest rates push up borrowing costs for utility companies, which typically need more capital for expenses such as maintaining the grid.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"catastrophe,natural-disasters,profit-loss,wildfire\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p><strong>Related: <a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/04\/23\/820989.htm\">Lawsuits Accuse Insurers of Colluding to Drop Coverage in Fire-Prone Parts of California<\/a><\/strong><\/p>\n<p>PG&amp;E said its interest expenses rose 2.7% to $734 million in the first quarter from a year earlier.<\/p>\n<p>Multiple wildfires scorched tens of thousands of acres across Los Angeles in January in what is now expected to be the most costly natural disaster in U.S. history. The area\u2019s electric utilities have also come under increasing scrutiny.<\/p>\n<p><strong>Related: <a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/04\/15\/819739.htm\">Southern California Edison Lays Out $925M Plan to Rebuild After LA Wildfires<\/a><\/strong><\/p>\n<p>The utility, which filed its wildfire mitigation plan for 2026 to 2028 in March, expects to construct nearly 700 miles of underground powerlines and 500 miles of other wildfire safety system upgrades between 2025 and 2026.<\/p>\n<p>PG&amp;E said that average residential electric rates were lower in March than they were a year earlier and it expects natural gas delivery rates to remain flat in 2025.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"catastrophe,natural-disasters,profit-loss,wildfire\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>On any tariff impact, PG&amp;E on a post-earning call said 90% of its equipment sourcing is primarily from domestic suppliers and sees its exposure to tariffs to be \u201cvery manageable.\u201d<\/p>\n<p><strong>Related: <a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/04\/09\/819136.htm\">State Farm\u2019s California Emergency Rate Request Dropped to 17%<\/a><\/strong><\/p>\n<p>The company\u2019s total operating revenue was $5.98 billion in the quarter, missing analysts\u2019 estimate of $6.14 billion, according to data compiled by LSEG.<\/p>\n<p>For the quarter ended March 31, the company\u2019s total operating expenses were up 3.8% at $4.76 billion.<\/p>\n<p>The Oakland, California-based utility said that its data center pipeline has grown to 8.7 gigawatts from 5.5 GW and has added nearly 3,000 customers in the quarter to its electric grid system.<\/p>\n<p>On an adjusted basis, PG&amp;E reported a profit of 33 cents per share, compared with the average analyst estimate of 34 cents.<\/p>\n<p><em>(Reporting by Menon in Bengaluru; Editing by Maju Samuel)<\/em><\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/catastrophe\/\" class=\"btn btn-sm btn-primary tagtag\">Catastrophe<\/a> <a href=\"https:\/\/www.insurancejournal.com\/natural-disasters\/\" class=\"btn btn-sm btn-primary tagtag\">Natural Disasters<\/a> <a href=\"https:\/\/www.insurancejournal.com\/profit-loss\/\" class=\"btn btn-sm btn-primary tagtag\">Profit Loss<\/a> <a href=\"https:\/\/www.insurancejournal.com\/wildfire\/\" class=\"btn btn-sm btn-primary tagtag\">Wildfire<\/a> <a href=\"https:\/\/www.insurancejournal.com\/location\/louisiana\/\" class=\"btn btn-sm btn-primary tagtag\">Louisiana<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"821250\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! 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Higher-for-longer interest rates push up borrowing costs for utility companies, which&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":23427,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[10,1292,11,68,1,1423,9],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2025\/04\/pge-misses-1q-profit-estimates-on-higher-expenses-la-wildfire-worries-linger.png","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/23426"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=23426"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/23426\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/23427"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=23426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=23426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=23426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}