Slide 1: 2019 Third Quarter Earnings
2019 THIRD QUARTER EARNINGS November 7, 2019
Slide 2: Forward Looking Statements
® Forward Looking Statements This presentation contains statements regarding management’s expectations and objectives for future periods as well as forecasts and estimates regarding potential liability in connection with the 2018 Camp fire and 2017 Northern California wildfires, the AB 1054 Wildfire
Slide 3: AB 1054 Wildfire Fund
® AB 1054 Wildfire Fund (1) Wildfire Fund Contribution Treatment $21B Wildfire Fund • Contribution amounts expected to be amortized based on an assumed ~10-year life (3) • Tax treatment pending private letter ruling from the IRS PG&E Pre-Emergence Wildfire Liabilities $4.8B • For fires occurring aft
Slide 4: Wildfire Mitigation Highlights
® Wildfire Mitigation Highlights 6 PSPS Events 1.0M+ Customer Impacts (1) 300+ Damages and Hazards Data-Driven Decision Making PSPS Restoration and Repair Recent Enhancements Enhanced data gathering and analytics 2019 PSPS Key Facts Minimize Impact on Customers provides for: Line Miles Patroll
Slide 5: 2019 Wildfire Mitigation Plan Progress
® 2019 Wildfire Mitigation Plan Progress (1) (2) 2019 Forecast Spend Year-To-Date Spend Expense ~$1.4B ~$1.1B (3) Capital ~$1.1B ~$0.6B Completed Programs Ongoing Programs Enhanced Situational Awareness Enhanced Inspections System Hardening & Resiliency Weather Stations (# of Stations) Transmission
Slide 6: Q3 2019 Earnings Results
® Q3 2019 Earnings Results Q3 YTD 2019 (in millions, except per share amounts) Earnings EPS Earnings EPS PG&E Corporation’s Loss on a GAAP basis $ (1,619) $ (3.06) $ (4,039) $ (7.65) Items Impacting Comparability: 2017 Northern California wildfire-related costs 1,465 2.77 2,935 5.56 2018 Camp fire-r
Slide 7: Q3 2019 Quarter over Quarter Comparison
® Q3 2019 Quarter over Quarter Comparison Non-GAAP Earnings per Share from Operations $1.25 ($0.09) $0.05 ($0.03) $0.13 ($0.03) ($0.01) ($0.04) $1.00 $0.75 $1.13 $1.11 $0.50 $0.25 $0.00 Q3 2018 Vegetation Resolution of Increase in Timing of Miscellaneous Growth in rate Liability Q3 2019 Earnings fro
Slide 8: 2019 Assumptions
® 2019 Assumptions Capital Expenditures Authorized Ratebase* (weighted average) ($ millions) ($ billions) (1) Equity Ratio: 52% Return on Equity: 10.25% 2019 2019 General Rate Case $4,700 General Rate Case $27.7 Gas Transmission and Storage 800 Gas Transmission and Storage (2) 4.5 Transmission Owner
Slide 9: 2019 Items Impacting Comparability Guidance
® 2019 Items Impacting Comparability Guidance ($ millions, pre-tax) (1) 2017 Northern California wildfire-related costs $ ~ 4,110 (2) 2018 Camp fire-related costs ~ 2,780 (3) Electric asset inspection costs 700 - 900 (4) Chapter 11-related costs ~ 550 - 600 (5) 2019 GT&S capital disallowance ~ 240 (
Slide 10: Capital Expenditures Forecast
® Capital Expenditures Forecast (1) 2018-2023 Capital Expenditures ~$7.2B $0.2B ~$7B $6.6B ~$1.1B ~$5.7B Wildfire Mitigation Plan: ~$900M Other GRC and Separately Funded: ~$200M 2018 Recorded 2019 Currently Authorized Incremental GRC Incremental TO Authorized Plus (3) (4) CapEx Requests and Other Re
Slide 11: Expected Ratebase Growth
® Expected Ratebase Growth (1) (2) 2018-2023 Weighted Average Ratebase ~7 - 8.5 % CAGR ~$52.0-56.0B ~$49.5-52.5B ~$47.0-49.0B ~$44.5-45.5B ~$40.3B $36.6B (5) (4) 2018 2019 2020 2021 2022 2023 (3) General Rate Case Gas Transmission & Storage Electric Transmission Owner Range Changes from prior quarte
Slide 12: Cap Ex and Ratebase Assumptions
® Cap Ex and Ratebase Assumptions Base Case Assumptions 2020 2021 2021 2022 2023 General Rate Case L 2017 GRC Decision (1) H 2020 GRC Filing (including Wildfire Mitigation Plan) Gas Transmission & Storage L 2019 GT&S Decision H 2019 GT&S Decision Transmission Owner L TO17 Settlement H TO20 Filing Li
Slide 13: Appendix
[t PG&E Corporation Appendix
Slide 14: Table of Contents
® Table of Contents Appendix 1 - Supplemental Earnings Materials Slides 15-33 Appendix 2 - Overview of Regulatory Cases Slides 34-37 14
Slide 15: Appendix 1 – Supplemental Earnings Materials
® Appendix 1 – Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Loss Attributable to Common Exhibit A: Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") Slides 16-19 to Non-GAAP Earnings from Operations Key Drivers of PG&E Corporation'
Slide 16: Exhibit A: Reconciliation of Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Earnings from Operations Third Quarter, 2019 vs. 2018 Three Months Ended Nine Months Ended (in millions,
Slide 17: Exhibit A: Reconciliation of Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Earnings from Operations Third Quarter, 2019 vs. 2018 (in millions, except per share amounts) (1) “Items
Slide 18: Exhibit A: Reconciliation of Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Earnings from Operations Third Quarter, 2019 vs. 2018 (in millions, except per share amounts) (4) The Ut
Slide 19: Exhibit A: Reconciliation of Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Earnings from Operations (8) The Utility incurred costs, net of insurance, of $9 million (before the tax
Slide 20: Exhibit B: Key Drivers of EPS
® Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Earnings per Common Share ("EPS") from Operations Third Quarter, 2019 vs. 2018 (in millions, except per share amounts) Third Quarter 2019 vs. 2018 YTD 2019 vs. 2018 Earnings per Common Earnings per Common Earnings Earnings Share (Diluted) Share
Slide 21: Exhibit C: Operational Performance Metrics
® Exhibit C: Operational Performance Metrics 2019 Performance Results YTD Actual 2019 Target Meets YTD Target (1) Safety Nuclear Operations Safety Diablo Canyon Power Plant (DCPP) Reliability and Safety 100.0 93.7 ü Electric Operations Safety 0.0 1.0 Public Safety Index Gas and Electric Operations S
Slide 22: Definitions of 2019 Operational Performance Metrics
® Definitions of 2019 Operational Performance Metrics from Exhibit C Safety Public and employee safety are measured in four areas: Nuclear Operations Safety, Electric Operations Safety, Gas Operations Safety, and Employee Safety. The safety of the Utility’s nuclear power operations, DCPP Unit 1 and
Slide 23: Exhibit D: Sales and Sources Summary
® Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary Second Quarter, 2019 vs. 2018 Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Sales from Energy Deliveries (in millions kWh) 22,761 23,054 59,200 60,578 Total Electric Customers at September 30
Slide 24: Exhibit E: 2019 Items Impacting Comparability Guidance
® Exhibit E: PG&E Corporation's 2019 Items Impacting Comparability ("IIC") Guidance 2019 IIC Guidance (in millions, after-tax) Low High (1) Estimated Items Impacting Comparability: (2) 2017 Northern California wildfire-related costs $ ~2,960 $ ~2,960 (3) 2018 Camp fire-related costs ~2,002 ~2,002 (4
Slide 25: Exhibit E: 2019 Items Impacting Comparability Guidance
® Exhibit E: PG&E Corporation's 2019 Items Impacting Comparability ("IIC") Guidance (3) “2018 Camp fire-related costs” refers to estimated third-party claims, Utility clean-up and repair costs, and legal and other costs associated with the 2018 Camp fire. The total offsetting tax impact for both the
Slide 26: Exhibit E: 2019 Items Impacting Comparability Guidance
® Exhibit E: PG&E Corporation's 2019 Items Impacting Comparability ("IIC") Guidance (6) “2019 GT&S capital disallowance” reflects pipeline-replacement costs disallowed in the 2019 GT&S rate case as a result of spending above amounts authorized in the 2015-2018 rate case period. Due to flow-through t
Slide 27: Exhibit F: General Earnings Sensitivities for 2019
® Exhibit F: General Earnings Sensitivities for 2019 Pacific Gas & Electric Company Estimated 2019 Variable Description of Change Earnings Impact Rate Base +/- $100 million change in allowed rate base +/- $5 million Return on Equity (ROE) +/- 0.1% change in allowed ROE +/-$21 million Share count +/-
Slide 28: Exhibit G: Uses of Non-GAAP Financial Measures
® Exhibit G: Uses 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 “non-GAAP earnings from operations” and “non-GAAP EPS from operations” in
Slide 29: Exhibit H: GAAP Net Income to Adjusted EBITDA
® Exhibit H: GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA Reconciliation Pacific Gas & Electric Company Second Quarter, 2019 vs. 2018 Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 PG&E Corporation’s Net Income (Loss) on a GAAP basis $ (1,616
Slide 30: Exhibit I: Expected Timelines of Selected Regulatory Cases
® Exhibit I: Pacific Gas & Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2019 Gas Transmission and Storage Rate A.17-11-009 Nov 17, 2017 – Application filed Jan 4, 2018 – Prehearing Conference Mar 30, 2018 – Update testimony filed to reflect 2017
Slide 31: Exhibit I: Expected Timelines of Selected Regulatory Cases
® Exhibit I: Pacific Gas & Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Locate and Mark Order Instituting Investigation I.18-12-007 Dec 13, 2018 – OII issued Jan 14, 2019 – PG&E submitted its 30 Day Report Mar 14, 2019 – PG&E submitted its 90 Da
Slide 32: Exhibit I: Expected Timelines of Selected Regulatory Cases
® Exhibit I: Pacific Gas & Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Transmission Owner Rate Case (TO19) ER17-2154 Jul 26, 2017 – PG&E filed TO19 rate case seeking an annual revenue requirement for 2018 Sept 28, 2017 – FERC accepted TO19 maki
Slide 33: Exhibit I: Expected Timelines of Selected Regulatory Cases
® Exhibit I: Pacific Gas & Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2017 Northern California Wildfires Order I.19-06-015 Jun 27, 2019 – OII issued Instituting Investigation Jul 29, 2019 – PG&E to submit its initial response Jul 29, 2019 – Im
Slide 34: 2020 CPUC General Rate Case
® APPENDIX 2 - OVERVIEW OF KEY REGULATORY CASES 2020 CPUC General Rate Case • On December 13, 2018, PG&E filed its application for its 2020 General Rate Case requesting a ~$1.1B increase in revenue requirement over 2019 authorized. ($ billions) 2020 2021 2022 Revised Revenue Requirement ~$9.52 ~$9.8
Slide 35: 2019 CPUC Gas Transmission and Storage Rate Case
® APPENDIX 2 - OVERVIEW OF KEY REGULATORY CASES 2019 CPUC Gas Transmission and Storage Rate Case • On November 17, 2017, PG&E filed its 2019 Gas Transmission and Storage rate case. PG&E subsequently revised its request to reflect impacts from the Tax Cuts and Jobs Act as well as other forecast updat
Slide 36: FERC Transmission Owner Rate Cases
® APPENDIX 2 - OVERVIEW OF KEY REGULATORY CASES FERC Transmission Owner Rate Cases TO18 (2017 Revenues) • On July 29, 2016, PG&E filed TO18 with FERC requesting a ~$1.7B revenue requirement with an ROE of 10.90% (inclusive of 50 basis point adder) • We cannot predict when a final decision will be is
Slide 37: 2020 Cost of Capital Filing
® APPENDIX 2 - OVERVIEW OF KEY REGULATORY CASES 2020 Cost of Capital Filing • On April 22, 2019, PG&E filed its application for its 2020 Cost of Capital, including a request for a 16% rate of return on equity, which would result in a $1.2 billion increase in its revenue requirement based on currentl