Several publicly traded companies, including utility giant PG&E Corp PCG, stand to lose from scorching hot temperatures hitting California this week as 2024 shapes up to be one of the hottest years on record.
What Happened: Triple-digit temperatures are set to hit Southern California this week.
The National Weather Service issued excessive heat warnings and watches for the San Fernando Valley, areas in Ventura County, Bakersfield, Paso Robles and other areas of the state. Temperatures will reach 105 to 110 degrees.
Periods of high temperatures are also marked by increases in wildfire activity.
According to Bloomberg, PG&E said it may cut power to 12,000 homes and businesses, mostly in northern, rural areas. The Oakland-based company has avoided shutoffs in 2024. Edison International EIX is not planning any shutoffs.
Why it Matters: PG&E has faced billions in liabilities from wildfires and related weather-related events in the past.
It has also shut off power for thousands of homes in the past in response to wildfire threats. The company has spent billions in updating its electrical grid.
Looking forward, the imperative to build climate resilience into utility operations becomes increasingly urgent. Utilities face mounting pressures to accelerate the transition towards renewable energy sources, reduce carbon footprints, and fortify infrastructure against extreme weather events.
Price Action: PG&E traded at $17.11, down 2% at the time of writing. Its stock has cratered nearly 80% since extreme weather has become increasingly prevalent in California.
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