Shares of PG&E declined on Wednesday as the California utility's poor week continued after the company announced it was undergoing a strategic review to "reinvent" itself.

PG&E stock dropped 10% to $12.63 on Wednesday and was down more than 24% on the week after rising nearly 6% on Tuesday.

The company said Wednesday it will undergo a strategic review and that it was reducing its 2027 capital investment plan by $2 billion to $11.4 billion from $13.4 billion. That brings PG&E's spending plan inline with 2025 levels.

The lower capital plan reduces PG&E's 2027 utility and parent debt needs by approximately $1 billion each, according to the company.

CEO Patti Poppe said on the business update call Wednesday this will allow PG&E to "borrow less at a time when financing costs are high" and reduce costs for customers.

Poppe added that the strategic review will seek to identify affordable, long-term capital. The utility said it plans to "consider the full range of options" for how PG&E is organized and financed.

The business update and decision to undertake a broad strategic review came as California lawmakers on the final day of the legislative session decided not to vote on a key wildfire bill that didn't include liability protection for utilities.

The decision by the California State Assembly effectively shelved the legislation, Senate Bill 492.

Assembly Speaker Robert Rivas said in a press release Tuesday that the legislation failed to implement "meaningful reform."

"We are going back to work-and we will not stop until we have done everything in our power to deliver real results," Rivas said.

Along with PG&E, Edison International stock fell 7.8% to $54.21 on Wednesday after gaining 8.9% in the previous session. Shares of fellow California utility Sempra declined 1.3% on Wednesday.

The bad times kept rolling on for shares of the California utilities after selling off on Monday after lawmakers over the weekend amended the wildfire legislation but left out Gov. Gavin Newsom's proposal to limit insurance companies from suing utilities over wildfire-related legal claims.

The lack of liability protection for the likes of PG&E and Edison International was a major sticking point and local media in California reported Tuesday lobbying efforts were underway to kill the bill.

Another concern for Wall Street and the California utilities was that the legislation didn't include a long-term funding solution for the state's $21 billion wildfire fund, which is paid for by utility shareholders and ratepayers to cover liability.

Wall Street broadly believes California utilities could face liability pressure-and that investors could be left to pay if a slew of claims materialize. This fear is due to the January 2025 Eaton Fire, which roared through Los Angeles.

Liability claims related to the blaze could potentially deplete the wildfire fund sooner rather than later.

Financial liability has historically been an issue for PG&E.

The utility in early 2019 filed for Chapter 11 bankruptcy under the weight of massive wildfire liability claims. Shares of PG&E also tumbled between October 2018 and October 2019, and have been slowly attempting a recovery ever since. The utility emerged from Chapter 11 bankruptcy in July 2020.

Poppe on Wednesday said that it has become increasingly clear that targeted reforms to California's wildfire liability structure are required for California utilities to affordably deliver energy.

The PG&E CEO added that a permanent source of funding beyond the current wildfire fund is crucial for the utility to attract capital.

"We have concluded that PG&E cannot simply wait for the policy framework to change," Poppe said. "We must take action now to sustainably serve our customers. And that's why we're moving to reinvent PG&E."