Slide 1: Second Quarter Earnings Call
SECOND QUARTER EARNINGS CALL July 27, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation about future performance, including forecasts and estimates of PG&E Corporation’s 2017 financial results, 2017 items impacting comparability, 2017 equity issuance, 2017-2019 capital expenditures and rate base, dividend policy, gene
Slide 3: Well-positioned to Deliver Strong Returns
Well-positioned to Deliver Strong Returns Building on Safety and Operational Performance • Continuing focus on public, employee, and contractor safety • Delivering reliable gas and electric service Healthy 3-year Delivering on Customer Expectations growth profile • Improving customer service through
Slide 4: Q2 2017 Earnings Results
Q2 2017 Earnings Results Q2 2017 Earnings Earnings EPS EPS (millions) (millions) Earnings on a GAAP basis $ 406 $ 0.79 $ 982 $ 1.92 Items Impacting Comparability Pipeline related expenses 17 0.03 33 0.06 Legal and regulatory related expenses 2 0.01 4 0.01 Fines and penalties - - 36 0.07 Butte fire-r
Slide 5: Q2 2017: Quarter over Quarter Comparison
Q2 2017: Quarter over Quarter Comparison Earnings per Share from Operations $1.00 $0.04 $0.90 $0.07 $0.15 ($0.04) ($0.02) $0.80 $0.70 $0.60 $0.50 $0.86 $0.40 $0.66 $0.30 $0.20 $0.10 $0.00 Q2 2016 EPS from Timing of 2015 GT&S Growth in Rate Base Miscellaneous Impact of 2017 GRC Increase in Q2 2017 EP
Slide 6: 2017 Earnings Per Share Guidance
2017 Earnings Per Share Guidance Low High Estimated EPS on a GAAP Basis $ 3.54 $ 3.79 Estimated Items Impacting Comparability Pipeline related expenses 0.14 0.09 Legal and regulatory related expenses ~ 0.01 ~ 0.01 Fines and penalties ~ 0.07 ~ 0.07 Butte fire-related insurance recoveries, net of lega
Slide 7: 2017 Assumptions
2017 Assumptions Capital Expenditures Authorized Ratebase (weighted average) ($ millions) ($ billions) 2017 2017 General Rate Case 3,850 General Rate Case 24.6 Gas Transmission and Storage 950 Gas Transmission and Storage 3.0 Transmission Owner 18 1,100 Transmission Owner 6.8 Total Cap Ex ~$5.9 bill
Slide 8: 2017 Items Impacting Comparability
2017 Items Impacting Comparability ($ millions, pre-tax) 2017 Pipeline related expenses (1) 80 - 125 Legal and regulatory related expenses ~ 10 Fines and penalties (2) ~ 60 Butte fire-related insurance recoveries, net of legal costs (26) GT&S revenue timing impact (150) Net benefit from derivative l
Slide 9: 2017 Equity Issuance
2017 Equity Issuance $400 - 600M $400 - 500M 2017 2017 As of Q1 As of Q2 June 30, 2017 shares outstanding: ~512 million Changes from prior quarter noted in blue See the Forward Looking Statements for factors that could cause actual results to differ materially from the guidance presented and underly
Slide 10: Robust Cap Ex Supports Strong Returns
Robust Cap Ex Supports Strong Returns Capital Expenditures ($ in B) 2017-2019 ~$6.1B ~$6B ~$5.9B 2017 2018 2019 General Rate Case Gas Transmission & Storage Electric Transmission Owner Range Changes from prior quarter noted in blue See the Forward Looking Statements for factors that could cause actu
Slide 11: Ratebase Supports Strong Returns
Ratebase Supports Strong Returns Weighted Average Ratebase ($ in B) Base Case Assumptions: 2017-2019 • 2017 General Rate Case through 2019 • 2015 Gas Transmission & Storage rate case ~6.5-7% – Phase 2 decision through 2018; flat in 2019 CAGR – ~$400M for 2011-2014 spend subject to audit added in ~$3
Slide 12: Dividend Policy Supports Strong Total Shareholder Return
Dividend Policy Supports Strong Total Shareholder Return + ~8% + ~8% ~60% Payout $2.60 Ratio $2.12 $1.96 $1.82 2015 2016 2017 2019 Targeting 55-65% payout ratio over time Changes from prior quarter noted in blue See the Forward Looking Statements for factors that could cause actual results to differ
Slide 13: Appendix
[t PG&E Corporation Appendix
Slide 14: Appendix – Supplemental Earnings Materials
Appendix – Supplemental Earnings Materials Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available Slides 15-16 for Common Shareholders in Accordance with Generally Accepted Accounting Principles to Earnings from Operations Exhibit B: Key Drivers of PG&E Corporation’s Earnings
Slide 15: Exhibit A: Reconciliation of GAAP to Earnings from Operations
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Earnings from Operations Page 1 of 2 Second Quarter and Year to Date, 2017 vs. 2016 Three Months Ended June 30, S ix Months En
Slide 16: Exhibit A: Reconciliation (Page 2 of 2)
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Earnings from Operations Page 2 of 2 Three Months Ended S ix Months Ended (in millions, pre-tax) June 30, 2017 June 30, 2017 C
Slide 17: Exhibit B: Key Drivers of EPS from Operations
Exhibit B: Key Drivers of PG&E Corporation’s Earnings per Common Share (“EPS”) from Operations Second Quarter and Year to Date, 2017 vs. 2016 (in millions, except per share amounts) Three Months Ended June 30, 2017 S ix Months Ended June 30, 2017 Earnings per Earnings per Common Common Earnings Earn
Slide 18: Exhibit C: Operational Performance Metrics
Exhibit C: Operational Performance Metrics Meets YTD 2017 Year to Date Q2 Actual EOY Target Target (1) Safety (includes both public and employee safety metrics) Nuclear Operations Safety Unit 1 Performance Indicator 97.1 90.5 Unit 2 Performance Indicator 90.0 87.6 Electric Operations Safety Elec
Slide 19: Definitions of 2017 Operational Performance Metrics
Definitions of 2017 Operational Performance Metrics from Exhibit C Safety Public and employee safety are measured in four areas: (1) Nuclear Operations Safety, (2) Electric Operations Safety, (3) Gas Operations Safety, and (4) Employee Safety. 1. The safety of the Utility’s nuclear power operations,
Slide 20: Exhibit D: Sales and Sources Summary
Exhibit D: Pacific Gas and Electric Company Sales and Sources Summary Second Quarter and Year to Date, 2017 vs. 2016 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Sales from Energy Deliveries (in millions kWh) 19,216 19,879 38,754 39,419 Total Electric Customers at June 3
Slide 21: Exhibit E: 2017 Earnings per Share Guidance (1 of 2)
Exhibit E: PG&E Corporation’s 2017 Earnings per Share Guidance Page 1 of 2 2017 EPS Guidance Low High Estimated EPS on a GAAP Basis $ 3.54 $ 3.79 (1) Estimated Items Impacting Comparability: (2) Pipeline related expenses 0.14 0.09 Legal and regulatory related expenses (3) ~ 0.01 ~ 0.01 (4) Fines and
Slide 22: Exhibit E: 2017 Earnings per Share Guidance (2 of 2)
Exhibit E: PG&E Corporation’s 2017 Earnings per Share Guidance Page 2 of 2 (5) “ Butte fire-related insurance recoveries, net of legal costs” refers to the insurance recoveries associated with the Butte fire, net of legal costs. The Utility currently is unable to estimate the low and high end of the
Slide 23: Exhibit F: 2017 General Earnings Sensitivities
Exhibit F: 2017 General Earnings Sensitivities PG&E Corporation and Pacific Gas and Electric Company Variable Description of Change Estimated 2017 Earnings Impact Rate base +/- $100 million change in allowed rate base +/- $5 million Return on equity (ROE) +/- 0.1% change in allowed ROE +/- $18 milli
Slide 24: Exhibit G: Use of Non-GAAP Financial Measures
Exhibit G: Use of Non-GAAP Financial Measures PG&E Corporation and Pacific Gas and Electric Company: Use of Non-GAAP Financial Measures PG&E Corporation discloses historical financial results and provides guidance based on “earnings from operations” in order to provide a measure that allows investor
Slide 25: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2017 General Rate Case (Phase I) A. 15-09-001 Sep 1, 2015 – Application Filed Sep 29, 2015 – Application Workshop Oct 29, 2015 – Prehearing conference Jan 22, 2016 – PG&E Su
Slide 26: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2015 Electric Distribution Resources Plan A.15-07-006, Aug 13, 2014 – Commission issues OIR directing utilities to file Electric Distribution Resources Plans (DRP) R.14-08-0
Slide 27: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2015 Electric Distribution Resources Plan A.15-07-006, Jun 19, 2017 – PG&E filed comments on CPUC Staff's Grid Modernization Whitepaper (DRP) R.14-08-013 Jun 22, 2017 – Deci
Slide 28: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Integration of Distributed Energy R.14-10-003 Sep 22, 2015 – Decision to expand scope to include distributed energy resources (DERs) on system side of customer's meter Resou
Slide 29: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Ex Parte Order Instituting Investigation and I.15-11-015 Nov 23, 2015 – OII issued Order to Show Cause Dec 3, 2015 – City of San Bruno, City of San Carlos and TURN comments