PG&E Corp. (PCG)

Shares of Pacific Gas & Electric Co. or PG&E (PCG) dropped by 5.64% from $16.13 to $15.22 in the trading on Monday October 2, 2023. The reasons why stock PCG is down today includes:

• Higher 10-year Treasury yield: Long-term interest rates surged further today. The yield on the 10-year Treasury bond climbed by 12 basis points, marking a new high for 2023 and the highest since 2007. These rising long-term yields will dampen utilities stock like PG&E, which, despite offering high yields, have low growth prospects akin to fixed-income investments.
• PG&E's $6 billlion plan to prevent wildfires in Peril: PG&E plans a $5.9 billion investment to bury 2,000 miles of power lines by 2026, reducing wildfire risk by 20%. However, regulators may limit this to 200 or 973 miles with insulation, jeopardizing the 10,000-mile goal. PG&E defends the safety benefits despite a slight customer cost increase, which disappoints utility customers.