PG&E Shares Drop 7% After California Lawmakers Block Wildfire Liability Reform

PG&E Corp shares fell roughly 7% on Friday, crossing below their 200-day moving average of $16.83 and touching as low as $15.84, after California lawmakers blocked Governor Gavin Newsom's push to prevent insurers from recovering wildfire losses from utilities through subrogation claims. The defeat of the proposal, which was part of a broader effort to limit utility wildfire liabilities, is a significant setback for PG&E and peer Edison International, whose shares also declined. With the state legislative session set to end August 31, the larger structural reforms now appear off the table entirely.

The selloff drove heavy and unusual options activity in PCG across both calls and puts, including notable positioning in September and October contracts at the $15 to $17.50 strike range, reflecting sharp uncertainty around the stock's near-term direction.