Sacramento, Calif. – September 12, 2026 -- Consumer Watchdog has released a video accusing Pacific Gas & Electric of withholding $2 billion in already-funded infrastructure spending to pressure California lawmakers into approving liability relief legislation in a special session.
PG&E withholds $2 billion in ratepayer-funded upgrades pending bailout approval
The advocacy group alleges PG&E is halting infrastructure work that customers have already paid for through approved rate hikes, after the state legislature declined to grant the utility liability protections during its regular session. Former California Public Utilities Commission (PUC) President Loretta Lynch calls the move "bailout blackmail" in the video, arguing PG&E CEO Patti Poppe misrepresented the company's financial position.
Former PUC president disputes CEO's claim that new equipment requires additional billions
In a prior PG&E video, Poppe stated the utility collects rates to maintain existing gas and electric equipment but needs to "raise billions of dollars more every year" to build new infrastructure. Lynch counters that ratepayers already fund $19 billion annually to PG&E and pay an additional 10% markup on every piece of equipment, plant, or infrastructure the utility builds or owns, plus taxes on that markup. She estimates ratepayers pay 15 cents of every dollar toward PG&E profit and associated taxes.
Consumer Watchdog petitions PUC for an order to show cause
The organization has formally petitioned the PUC to compel PG&E to explain why it is withholding the $2 billion and to seek either a ratepayer refund or mandated spending on the infrastructure. Poppe has reportedly said she would release the funds if the legislature grants liability relief in bailout legislation.
Lynch calls for an audit of PG&E's finances
Lynch argues PG&E holds monopoly status under a legal duty to serve all customers safely, and that the utility has sufficient funds to complete the infrastructure work without new legislative concessions. "If they don't, let's audit their books and see where they're stashing the cash," she said, urging state policymakers to reject the liability exemption PG&E is seeking.