Why PG&E Stock Just Crashed

PG&E stock plummeted 19.6% after California legislators rejected Governor Newsom's proposal to shield utilities from insurance company lawsuits (subrogation) related to wildfire damages. The failed legislation would have shifted wildfire costs from utilities to insurers, but insurers argued this would force them to raise premiums or drop coverage in high-risk areas. While some compromise measures were proposed, the rejection of the main liability protection is a significant setback for PG&E.