PG&E (PCG) Positioned for Data Center-Driven Utility Growth in 2026, Says Morgan Stanley

Group 1: Company Overview - PG&E Corporation (NYSE:PCG) is a holding company based in Oakland, California, and is the parent of Pacific Gas and Electric Company, which provides energy service to approximately 16 million people across a 70,000-square-mile area in Northern and Central California [7]. Group 2: Financial Performance and Analyst Ratings - Morgan Stanley lowered the price target on PG&E Corporation to $20 from $21 while maintaining an Equal Weight rating, indicating that utility performance will be significantly influenced by data centers and growth potential in 2026 [2]. Group 3: Technological Advancements - PG&E announced the successful launch of its Dynamic Line Rating (DLR) and Asset Health Monitoring (AHM) technology demonstration, which utilizes advanced sensors and real-time analytics to enhance the monitoring and utilization of transmission lines [3]. - The DLR technology allows for dynamic calculation of line capacity based on live weather data, enabling more electricity to flow through existing lines without the need for new infrastructure [5]. - By testing DLR and AHM tools, PG&E aims to modernize the grid, unlock unused capacity, improve reliability, and support renewable energy, potentially lowering costs for customers [6]. Group 4: Strategic Initiatives - PG&E and its partners have completed hardware field installations and vendor dashboard setups, moving the project into trial deployment across all technologies, which is part of a broader strategy to expand and upgrade substations and transmission lines [4].