California Democrats panic as PG&E cuts $2 billion in planned spending over wildfire liability fight

California’s Democratic leaders are facing a fresh standoff with the state’s biggest utility after PG&E announced it would pull back billions of dollars in planned spending.

The move now has put renewed pressure on Sacramento to resolve a bitter fight over who should pay when utility equipment sparks catastrophic wildfires.

PG&E said it plans to reduce its 2027 investments by about $2 billion, citing the growing financial burden of California’s wildfire-liability rules.

The announcement comes just after lawmakers ended their legislative session without reaching a deal that would have changed how the state’s major investor-owned utilities shoulder wildfire costs.