Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Corporate Update (November 2023)
18 slides from Pacific Gas & Electric's corporate update, Nov 28, 2023
Slide 1: Business Update: Investing in California's Prosperity
Business Update Investing in California’s Prosperity November 28, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements regarding PG&E Corporation’s and Pacific Gas and Electric Company’s (the “Utility”) future performance, including expectations, objectives, and forecasts about operating results (including 2023 and 2024 non-GAAP core earnings), equity
Slide 3: Firming Up 2023, Introducing 2024
Firming Up 2023, Introducing 2024… NON-GAAP CORE EPS1 GUIDANCE EPS GROWTH INVESTMENT New EPS At least Quarterly Dividend Equity 2023 $1.20-$1.23 10% $0.01 /share Lift 2023 and 2024 Up at least $0 At least Rate Base Growth ON TRACK 10% ~9% 2024 9% ON TRACK $1.31-$1.35 2025 and 2026 Intro 2023-2026 Cu
Slide 4: GRC Final Decision
GRC Final Decision… Revenue Requirement $B Funds 163 miles per year for gas distribution pipe replacement 2023 2024 2025 2026 Fully funds requested annual $13.52 $14.24 $14.60 $14.80 energization work Revenue Catch-Up Escalation Undergrounding Wildfire Mitigation • Cash collection of 2023 • Increase
Slide 5: Customer Capital Investment Opportunities
Customer Capital Investment Opportunities… Rate Base Weighted Average - $B ~$74 Timing of Capital Investment Opportunities Potential Incremental Prior 2024 2025 2026 CapEx Cost Recovery Applications $4B $49.8 Energization (SB 410) Up to ~$4B CPUC including GRC Final Decision FERC ~$2B Pending 10-Yea
Slide 6: Affordable Business Model
Affordable Business Model… Monthly Bill Forecast Combined Electric & Gas Monthly Bill: Residential Bundled Non-Care $300 “One-Time” “One-Time” Deferred Recovery Costs Roll Off GRC 2% - 4% Average Annual Increase $235 2023 2024 2025 2026 …Helps Keep Bill Growth Below Traditional Inflation 6
Slide 7: Recent Milestones Affirm
Recent Milestones Affirm… Wildfire self-insurance saves customers up to Moody’s outlook revised to “Positive” from “Stable” – February 2023 $1.8B for 2023-2026 – January 2023 “ Promises Made, Promises Kept” Senator Bill Dodd EEI Emergency Response CPUC resolves Safety May 2023 Award following back-t
Slide 8: Q&A
Patti Poppe CEO Q&A Carolyn Burke EVP, Chief Financial Officer
Slide 9: Appendix
Appendix
Slide 10: Table of Contents
Table of Contents Appendix # Title Slide (Link) Appendix 1 2023 Factors Impacting Earnings Slide 11 Appendix 2 2024 Factors Impacting Earnings Slide 12 Appendix 3 PG&E Corporation’s Earnings Guidance Slide 13-16 Appendix 4 Non-GAAP Financial Measures Slide 17 Appendix 5 Presentation Endnotes Slide 1
Slide 11: Appendix 1: 2023 Factors Impacting Earnings
Appendix 1: 2023 Factors Impacting Earnings Key Ranges Weighted Average Rate Base2 Non-GAAP Core EPS1 Equity Ratio:3 52% Return on Equity:3 10.00% $1.20 - $1.23 CPUC $45.0 - $45.5B New Equity in 2023 and 2024 FERC $11.0 - $11.5B $0 Total Rate Base $56 - $57B Non-Core Items4 Key Factors Affecting Non
Slide 12: Appendix 2: 2024 Factors Impacting Earnings
Appendix 2: 2024 Factors Impacting Earnings Key Ranges Weighted Average Rate Base2 Non-GAAP Core EPS1 Equity Ratio:3 52% Return on Equity:3 10.00% $1.31 - $1.35 CPUC $47.5 - $51.5B New Equity in 2023 and 2024 FERC ~$12.5B $0 Total Rate Base $60 - $64B Non-Core Items4 Key Factors Affecting Non-GAAP C
Slide 13: Appendix 3: PG&E Corporation's Earnings Guidance
Appendix 3: PG&E Corporation's Earnings Guidance 2023 2024 EPS Guidance Low High Low High Estimated EPS on a GAAP basis ~ $ 1.04 ~ $ 1.08 ~ $ 1.08 ~ $ 1.12 Estimated Non-Core Items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.19 ~ 0.19 ~ 0.15 ~ 0.15 Bankruptcy and legal costs (3) ~ 0.05 ~
Slide 14: Appendix 3: PG&E Corporation's Earnings Guidance
Appendix 3: PG&E Corporation’s Earnings Guidance (3) “Bankruptcy and legal Exhibit E:costs” PG&E consists of legal and other Corporation's costs associated 2020 and 2021 withEarnings PG&E Corporation’s Guidance and the Utility’s Chapter 11 filing, and exit financing costs. 2023 2024 Low High Low Hig
Slide 15: Appendix 3: PG&E Corporation's Earnings Guidance
Appendix 3: PG&E Corporation’s Earnings Guidance (5) “Investigation remedies” includes costs related to the Paradise restoration and rebuild, the CPUC Wildfires OII decision, the settlement agreement with the Safety and Enforcement Division’s investigation into the 2020 Zogg fire, and the locate and
Slide 16: Appendix 3: PG&E Corporation's Earnings Guidance
Appendix 3: PG&E Corporation’s Earnings Guidance (7) “Strategic repositioning costs” includes one-time costs related to repositioning PG&E Corporation’s and the Utility’s operating model, including their workforce, and costs associated with the potential sale of a minority interest in Pacific Genera
Slide 17: Appendix 4: Non-GAAP Financial Measures
Appendix 4: Non-GAAP Financial Measures Non-GAAP Core Earnings and Non-GAAP Core EPS “Non-GAAP core earnings” and “Non-GAAP core EPS,” also referred to as “non-GAAP core earnings per share,” are non-GAAP financial measures. Non-GAAP core earnings is calculated as income available for common sharehol
Slide 18: Appendix 5: Presentation Endnotes
Appendix 5: Presentation Endnotes Slide 3: Firming Up 2023, Introducing 2024 Slide titles are hyperlinks 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 3 for a reconciliation of PG&E Corporation’s EPS guidance on a GAAP basis to non-GAAP core earnings per share and Appe