Investing.com - Pacific Gas & Electric soared Tuesday, lifting utilities higher, as investors continued to digest reports of new legislation that could shore up the company's balance sheet, easing fears of bankruptcy.
PG&E (NYSE:PCG) soared 6% on reports a California lawmaker is preparing to introduce legislation designed to give the utility company more financial stability at a time when many are concerned that liabilities from damages from October's California wildfires could bankrupt the company.
The new legislation would allow investor-owned utilities like Pacific Gas & Electric to file with the California Public Utilities Commission and recover some fire costs retroactively.
Shares of PG&E have attempted to mount a recovery following a crash earlier this month, when California's fire protection agency raised the possibility that the California Camp Fire may have been caused by the company's equipment.
Edison International (NYSE:EIX) continued to add to gains amid expectations that the utility company would be able to continue paying a dividend despite potential losses from liabilities linked to the Woolsey Fire in Southern California. Its shares were up more than 2%.
UBS senior credit strategist Frank Sileo said in a report last week that he believes Edison International "has adequate liquidity and strong financial flexibility to fund wildfire-related losses," adding that the prospect of the company suspending dividends was "low."
Elsewhere, energy company PPL (NYSE:PPL) rose more than 1%, helping utilities hold gains.
The S&P 500 Utilities index was up 0.7%.