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October 23, 2025 • 3 min read
As one of California's largest utilities, PG&E Corporation's financial health is a critical indicator of the state's energy landscape. We're diving into the company's latest quarterly 10-Q filing to see how it performed through the first nine months of 2025 and what key challenges lie ahead. The report reveals a story of rising revenues and improved profits, but also underscores the immense and ongoing costs associated with wildfire risk and major operational shifts.
For the nine months ending September 30, 2025, PG&E Corp. reported total operating revenues of $18.1 billion, a slight increase from $17.8 billion during the same period last year. More notably, net income available to common shareholders grew to $1.95 billion, up from $1.83 billion in 2024. This improvement was largely driven by CPUC-approved rate increases designed to fund infrastructure investments.
To visualize how PG&E's revenue flows through its operations to generate profit, the following chart breaks down the company's income statement for the first nine months of 2025.
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A significant driver of increased expenses was Operating and Maintenance, which rose to $8.1 billion. A key factor was approximately $470 million in new costs tied to the extended operations of the Diablo Canyon Power Plant (DCPP), a cost not present in the prior year's results.
Wildfire-related costs remain a central theme in PG&E's financial narrative. The company continues to manage liabilities from past events while investing heavily to prevent future ones. For the first nine months of 2025, the company booked $100 million in wildfire-related claims, net of recoveries.
The company is also actively pursuing recoveries to offset these massive costs. As of September 30, 2025, PG&E has recorded significant receivables for past events, including:
The Wildfire Fund is a state-managed fund that eligible utilities can draw from to pay for claims from catastrophic wildfires, helping to stabilize utilities and protect customers from sudden rate shocks. However, the process of booking and receiving these funds highlights the long and complex financial tail of each major fire event.
PG&E is in the midst of a massive, multi-year effort to strengthen its electric grid. This is reflected in its capital expenditures. The utility's net cash used in investing activities surged to $9.25 billion for the nine-month period, up from $8.2 billion in 2024. This nearly $1.1 billion increase in capital spending is funding critical projects for grid modernization and undergrounding power lines to reduce wildfire risk.
To finance these ambitious projects, the company relies heavily on debt. The utility's long-term debt grew to nearly $50 billion by the end of the quarter. Managing this debt while continuing to make necessary safety investments is a key balancing act for the company.
PG&E's Q3 2025 results show a company making financial headway, with stronger profits and a clear strategy for reinvesting in its system. However, the path is fraught with challenges. The financial overhang from past wildfires, the escalating costs of grid hardening, and new operational expenses from Diablo Canyon all place immense pressure on the company. For investors, regulators, and customers alike, the key will be watching whether PG&E can execute its safety and modernization plans efficiently without overburdening ratepayers, all while navigating California's ever-present climate risks.
Last updated: October 23, 2025