UPDATE: Jefferies Color on PG&E Target Decrease

Jefferies, which downgraded shares of PG&E Corp. PCG while lower its PT, is providing some color on the stock. “We were previously assuming that the company would be able to earn of some $1.5 billion of CWIP annually (which has been the average for the company in the past several years) on top of their rate base earnings, as it has been the case in the past,” Jefferies writes. “It is our understanding now that large portion of those earnings are expected to be offset by expenses coming from charitable contributions, advertising and public affairs, which are not refundable in rates.” PG&E closed Friday at $44.78.