10 Best Infrastructure Stocks To Buy Now

4. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders In Q2 2024: 46

PG&E Corporation (NYSE:PCG) is an electricity and gas company that caters to the needs of consumers in California. As of H1 2024, 72% of the firm’s revenue came through electricity. This means that PG&E Corporation (NYSE:PCG) is dependent on regulated ROE’s and electricity prices that are locked in. Additionally, electricity is also a seasonal market which sees demand grow in the summer season and drop during winters. Since it’s a utility, PG&E Corporation (NYSE:PCG)’s fate is dependent on regulators to a large extent, and this has been true for the last year and a half. The firm has sought the California Public Utilities Corporation’s (CPUC) approval to sell 5.6 gigawatts worth of non nuclear generation assets. However, the CPUC has rejected the plan to create hurdles in PG&E Corporation (NYSE:PCG)’s efforts to raise capital to manage wildfire risks and fund clean energy growth.

While the CPUC hasn’t been kind to PG&E Corporation (NYSE:PCG) for the sale’s approval, it did recently approve higher ROE’s. Here’s what management shared during the Q2 2024 earnings call:

“Just this month, in fact, the CPUC voted out Phase 2 of our general rate case, authorizing an incremental $2.3 billion of capital investment for energization with an opportunity to go back in and request more if customers need it. We were encouraged by comments from the commissioners, which supported the thesis that connecting new load can be beneficial for broader customer affordability. At the same meeting, the CPUC approved staff’s resolution affirming increasing our return on equity to 10.7%. California’s regulatory environment is strong, forward-looking, and delivers real value for customers and investors. “