Shares of PG&E Corp. (NYSE:PCG) are trading lower during Friday afternoon. The stock is facing selling pressure following reports that state lawmakers rejected Governor Gavin Newsom’s legislative effort to shield utilities from subrogation claims by insurance companies.
PG&E shares are sliding. What’s weighing on PCG shares?
Legislators Reject Plan to Ban Subrogation Claims Against Utilities
Friday’s decline stems directly from a legislative stalemate in Sacramento ahead of the August 31 session deadline. Governor Newsom had proposed ending subrogation, a legal process allowing insurance companies to recover financial losses from utilities when power equipment sparks a wildfire.
Legislative leaders in both the Assembly and Senate formally rejected the proposal after insurance executives warned that shifting liability to insurers would cause property insurance premiums to surge statewide.
