Kilambi News

PG&E files decade-long undergrounding investment plan

Infrastructure Monday, October 5, 2026 · Updated Oct 5, 2026 12:43

PG&E filed a 10-year plan to place 5,000 miles of distribution lines underground across more than 30 California counties from 2028 to 2037, claiming $117 billion in long-term benefits.

Why it matters: Undergrounding is the utility industry's most capital-intensive wildfire answer — the filing tests whether regulators will let PG&E earn a return on burying the grid, and at what cost to ratepayers.

Data as of Plan filed Oct 1 with California Office of Energy Infrastructure Safety; CPUC review pending

Pacific Gas and Electric Company filed a proposed 10-year Electrical Undergrounding Plan with California’s Office of Energy Infrastructure Safety on October 1, outlining a risk-based strategy to bury approximately 5,000 miles of electric distribution lines from 2028 through 2037 in high wildfire-risk areas across Northern and Central California.

PG&E estimates undergrounding would reduce wildfire ignition risk by nearly 98 percent and cut outages by 90 percent on the affected lines, delivering long-term benefits valued at $117 billion — more than ten times the proposed investment — including about $6 billion in avoided vegetation-management, operations and maintenance costs over the assets’ lives. The company says new technologies have cut its undergrounding cost per mile by about 25 percent.

Regulatory approval is the gating item: Energy Safety must determine the plan substantially increases reliability and reduces wildfire risk, after which PG&E will seek conditional cost approval from the California Public Utilities Commission. The filing lands weeks after PG&E said it would defer about $2 billion of 2027 investments under a strategic review — investors will watch whether the undergrounding capex survives that discipline. PG&E shares gained 1.23 percent to $12.32 on October 2 when the plan landed.

Sources

  1. PG&E Files 10-Year Electrical Undergrounding Plan to Deliver Permanent Wildfire Protection and Improve Safety, Reliability and Affordability · Electric Energy Online · 2026-10-02
  2. PG&E Files 10-Year Plan to Underground 5,000 Miles of Power Lines in California · Insurance Journal · 2026-10-05