PG&E CEO Patti Poppe Calls AI 'the Best Thing That Could've Ever Happened to the Grid'

PG&E earned $776 million on $6.18 billion in third-quarter revenue, missing Wall Street forecasts — yet CEO Patti Poppe is betting the AI boom will fund the grid's future. "I think AI is the best thing that could've ever happened to the grid," Poppe told Fortune in its latest CEO Source segment, adding that "AI equals growth and prosperity."

Her argument is straightforward: hyperscalers need power, and utilities need capital. Poppe welcomes tech companies like Google stepping up to co-invest in energy infrastructure. "The grid needs investment; AI and that whole revenue stream brings investment to the grid," she said. California has added 33 gigawatts of renewables and storage over the past five years — enough to power roughly 25 million homes — with 22 more gigawatts slated for addition by 2030.

Poppe took the top job at Pacific Gas and Electric in January 2021, becoming the first woman to move directly from one Fortune 500 CEO seat (CMS Energy) to another. She inherited a convicted corporate felon emerging from bankruptcy. PG&E's equipment had caused deadly wildfires, including the 2018 Camp Fire in Paradise, for which the utility pleaded guilty to 84 counts of involuntary manslaughter. Poppe spent her early tenure rebuilding public trust with what she described as a laser-sharp focus on culture and safety — before the AI boom, new regulations and mandated grid investments pushed rates back into the political spotlight.

What technologies does Poppe back?

She is "pro, pro, pro" on deploying nuclear energy. And in a business climate shying away from ESG, she stays vocal that "climate change has to be addressed." Her stated north star: make PG&E the country's safest and cleanest utility. She counts herself lucky to have the job. "I was born a girl in a little small town in Michigan, and by hard work and some luck, ended up in this chair," Poppe said. "Do what you love, love who you do it with, and love who you do it for."

Why is PG&E stock down?

At $12.98 a share, PG&E stock trades down a third from its 52-week high. Much of the pressure sits beyond Poppe's control:

• State lawmakers rejected Gov. Gavin Newsom's push for new wildfire legislation that would have blocked insurers from suing utilities over wildfire claims to keep rates in check.
• San Francisco is moving to take over PG&E's local distribution grid, claiming the city could do it for $3.4 billion.
• On Wednesday, PG&E told California regulators the takeover would actually cost $22.5 billion.

The earnings miss landed the same week. Poppe reaffirmed profit targets and signaled openness to breaking the company apart to isolate wildfire exposure while holding costs down. "The status quo is not acceptable," she said. She did not commit to a specific structure, but the comment marks the clearest sign yet that management sees separation as a live option for firewalling wildfire risk.

What's next?

Poppe says she feels supported in her push to strengthen California's grid, including from tech money ready to co-fund infrastructure. What remains unclear, as Fortune's Diane Brady put it, is the price her company will pay if anything goes wrong — a question the rejected wildfire liability legislation left unanswered.