Slide 1: 2024 Third Quarter Earnings
2024 THIRD QUARTER EARNINGS Delivering For Customers AND Investors November 7, 2024 1
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 2024 and 2025 non-GAAP core earnings), debt an
Slide 3: Strengthening Guidance… For Customers AND Investors
Strengthening Guidance… Non-GAAP Core EPS1 2024 Results Updated Guidance Key Takeaways ► Raising 2024 guidance low end $1.34 - $1.37 37¢ 2024 Up 10% ► Delivering on physical and financial safety Third Quarter $1.47 - $1.51 ► Executing on the PG&E Performance Playbook 2025 $1.06 Up 10% ► Adding $1B t
Slide 4: PG&E Power Pyramid
PG&E Power Pyramid… Decarbonized Energy System Affordable and Resilient Energy Physical and Financial Safety …Delivering For Customers AND Investors 4
Slide 5: Making Our System Safer Every Day
Physical Risk Mitigations... Weather-Normalized Ignition Rate Riskier California Wildfire Season… …Layers of Protection Delivered 3.23 2.67 2.76 1,335 Incidents ≥ 10 Acres in California * (all sources) Structures Destroyed in PG&E Reportable Fires in HFTD/HFRA 1.93 During R3+ Conditions 2.25 1.44 56
Slide 6: AB 1054 In California: Sector-Leading Financial Protection
AB 1054 In California… Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance Physical Risk Protections Offered Under AB 1054 Reduction Drives Financial Protections Liquidity Cost Recovery Reimbursement Available when needed Improved prudency standard1 Maximum liability capped Physical Risk 1
Slide 7: Our Simple, Affordable Model
Our Simple, Affordable Model… PLAN1 OPPORTUNITY1 Customer Capital Investment ~9% 9% - 10% Enablers O&M cost reduction (non-fuel)2 2% 2% 2% -- 3% 3% Electric load growth3 1% - 3% 2% 2% -- 4% 4% Other (including efficient financing)4 2% 2% 2% Subtotal 5% - 7% 6% - 9% Customer Bills: At or 2% - 4% 1% -
Slide 8: Story Of The Month: PG&E's Dublin Innovation Center
Story Of The Month: PG&E’s Dublin Innovation Center Utilizing the Performance Playbook to Rapidly Implement Regulatory Approvals The CPUC approved $1B of energization funding incremental to our workplan. Utilizing Lean, PG&E found over 3,000 additional customer requests that could be completed in 20
Slide 9: Non-GAAP Core EPS Comparison
Non-GAAP Core EPS 1 Comparison... First Nine Months 20¢ 4¢ 2¢ $1.06 Fourth Quarter (7¢) Factors 87¢ GRC Benefit2 11¢ Customer As Reported 76¢ Capital Investments Operating & Maintenance Savings Redeployment 2023 Customer Operating & Redeployment Timing 2024 First Nine Capital Maintenance and First N
Slide 10: Five-Year Capital Plan Raised To $63B
Five-Year Capital Plan… Weighted Average CapEx ($B)2 Rate Base ($B) Plus At Least $5B ~10% ~10% CAGR 2023-2028 $63B $63B 2024-2028 Customer Beneficial CPUC CPUC Investment Opportunities3 FERC 91 FERC 14.0 83 13.6 12.8 74 12.0 69 10.8 Transportation Electrification 63 9.8 Capacity Investments 57 76 6
Slide 11: Five-Year Financing Plan
Five-Year Financing Plan… Five-Year Financing Plan 2024 – 2028 COMPARED TO Q2 +$1 Amount COMPARED TO Q2 CALL ($billions) +½ 70 +½ $63 14½ 3 60 $50 (2) 50 11 (2½) 40 (11) 30 Junior Sub. Notes: + 1 Corp. Term Loan B: - ½ 20 10 0 Cash from Dividends Utility LT Debt Utility LT Debt Utility LT Debt PG&E
Slide 12: O&M Cost Reduction Performance
O&M Cost Reduction Performance… 2022 2023 2024 LONG-TERM OPPORTUNITY3 Actual Actual Plan PLAN3 Examples of O&M Cost (millions) (millions) (millions) (millions) (millions) Reductions (Non-Fuel) Resource Management $25 $90 $65 $65 $65 - $100 Efficiencies and Insurance 270 350 150 50 50 Capital Convers
Slide 13: Our Simple, Affordable Model
Our Simple, Affordable Model… PLAN1 OPPORTUNITY1 Customer Capital Investment ~9% 9% - 10% Enablers O&M cost reduction (non-fuel)2 2% 2% 2% -- 3% 3% Electric load growth3 1% - 3% 2% 2% -- 4% 4% Other (including efficient financing)4 2% 2% 2% Subtotal 5% - 7% 6% - 9% Customer Bills: At or 2% - 4% 1% -
Slide 14: Credit Rating Improvements
Credit Rating Improvements 1… SCALE SCALE RATING RATING Moody’s Moody's S&P/Fitch S&P/Fitch Moody’s Moody’s S&P Fitch Fitch A2 A A3 A- Utility Investment Secured Rating Baa1 BBB+ Grade Present Baa2 BBB 2020 Baa3 BBB- Issuer Credit Rating2 Ba1 BB+ Sub- Present Investment Ba2 BB Grade 2020 Ba3 BB- Out
Slide 15: Operating Cash Flow Growth
Operating Cash Flow Growth… $Billions $10 $8.3 Operating Cash Flow $8 Growth On Track +$3.6B $6 2023 GRC Catch-Up $4.7 $3.7 2024 GRC Revenue $4 2022 WMCE Interim $6.1 +$1.8B Rate Relief $2 $4.3 $2.7 2023 WGSC Interim Rate Relief $0 2023 Energy Cost 2022A 2023A 2024F Recovery Catch-Up As of Dec. 31 A
Slide 16: Working With Policymakers And Stakeholders
Working With Policymakers And Stakeholders… Nov 2023 2023 GRC Final Decision May 2023 Jun 2023 Dec 2023 Mar 2024 Jul 2024 Sept 2024 Q4 2024 Q1 2025 Safety Culture 2022 WMCE Diablo 2023 WMP 2023 WGSC GRC “Capacity 2023 WMCE OEIS 10-Year Energization Proceeding Interim Rate Canyon NRC Final Decision I
Slide 17: Differentiated Performance
Differentiated Performance… 2022A 2023A 2024F Future Customer Investment Rate Base Growth 5.5% 14.5% 10.5% ~10%5 CA Regulatory Ranking (RRA) Average/2 Average/1 Above Average Affordable Model Non-Fuel O&M Reduction1 3% 5½% 2% 2% Load Growth2 1% - 3% Bills3 2% - 4% Investment Grade & Credit Ratings B
Slide 18: Differentiated Growth And Regulatory Visibility
Differentiated Growth And Regulatory Visibility… Premium Growth Capital to Expense Ratio4 Rate Base Core EPS1 2.4 9% $B ~10% 9% CAGR 9% 1.6 91 1.4 83 10% 10% 69 74 63 10% 0.8 57 12% + DPS 10% Growth $1.00 2 PG&E 2023 PG&E 2028F 2023 Peer Avg 2023 Peer Top 23A 24F 25F 26F 27F 28F 21A 22A 23A 24F 25F
Slide 19: Q&A
Decarbonized Energy System Q&A Affordable and Resilient Energy Physical and Financial Safety 19
Slide 20: Appendix: Presentation Endnotes
Appendix 1 Presentation Endnotes 20
Slide 21: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide 3: Strengthening Guidance Slide titles are hyperlinks 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 3, Exhibits A and C for reconciliations of EPS results and guidance, respectively, on a GAAP basis to non-GAAP core earnings per
Slide 22: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide titles are hyperlinks Slide 13: Our Simple, Affordable Model 1. These numbers are illustrative approximations and should not be interpreted as a guarantee of future performance. 2. The Utility’s cost reduction strategies include increased efficiency and waste
Slide 23: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide titles are hyperlinks Slide 25: Appendix 2: 2024 Factors Impacting Earnings 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 3, Exhibit C for a reconciliation of EPS guidance on a GAAP basis to non-GAAP core earnings per share and A
Slide 24: Appendix: Supplemental Earnings Materials
Appendix 2 Supplemental Earnings Materials 24
Slide 25: 2024 Factors Impacting Earnings
2024 Factors Impacting Earnings Key Ranges Weighted Average Rate Base2 Equity Ratio:3 52% Return on Equity: 10.7% Non-GAAP New Equity Core EPS1 in 2024 CPUC $52B FERC $11B $1.34 - $1.37 $0 Total Rate Base $63B Key Factors Affecting Non-Core Items4 Non-GAAP Core Earnings6 ($ millions after tax) ($ mi
Slide 26: 2025 Factors Impacting Earnings
2025 Factors Impacting Earnings Key Ranges Weighted Average Rate Base2 Equity Ratio:3 52% Return on Equity: 10.28% Non-GAAP New Equity Core EPS1 2025 - 2028 CPUC $57B FERC $12B $1.47 - $1.51 $3B Total Rate Base $69B Key Factors Affecting Non-Core Items4 Non-GAAP Core Earnings6 ($ millions after tax)
Slide 27: Expected Recovery Of Wildfire-Related Costs
Expected Recovery Of Wildfire-Related Costs Amount Recovery Outstanding By Year ($billions) Recovery Status 5 Approved as of September 30, 2024 4.6 Pending 0.9 Yet To Be Filed $0.5B 4 3.5 Total Approved 0.3 2021 WMCE $607M 3 $2.0B 2022 WMCE $59M 2.5 2.5 Pending 2023 WMCE $1,041M 2.6 1.8 2023 WGSC $2
Slide 28: New Load In PG&E's Service Area Helps With Customer Affordability
NewLoad New LoadInIn PG&E’s PG&E’s Service Service Area… Area Helps With Customer Affordability New Load Beneficial Load Data Centers Electric Vehicles Modeling Guidelines1 Incremental Load 1,000 MW 1M EVs2 System Capital Need $0.5B - $1.6B $1.5B - $2.0B Capital Needs New T&D Revenue from $450M $800
Slide 29: SB 846 Diablo Canyon Legislation
SB 846 Diablo Canyon Legislation 10/18/22 3/2/23 12/19/23 6/25 Executed NRC approved exemption NRC determined NRC Environmental $1.4B loan request allowing continued license renewal Impact Statement agreement with operations at DCPP application sufficient and Safety DWR Evaluation Report 9/2/22 11/7
Slide 30: Wildfire Mitigation Plan Progress
Wildfire Mitigation Plan Progress Completed 2019-2023 2024 914 Exhibit E: PG&E Corporation's 2020 and 2021 Earnings ACTUALS Guidance TARGET Target 664 Undergrounding Our Lines 300 Undergrounding powerlines to reduce wildfires caused by equipment 664 250 7 48 120 MILES COMPLETED MILES 2019 2020 2021
Slide 31: Physical Risk Mitigation Progress Then & Now
Physical Risk Mitigation Progress Then & Now 2017 2024 SITUATIONAL AWARENESS ASSET IMPROVEMENTS EPSS High-Definition Cameras with AI Capability 630 CAMERAS INSTALLED Undergrounding 737 MILES COMPLETED * PSPS Weather Stations 1,577 STATIONS INSTALLED System Hardening 1,877 MILES COMPLETED ** Hazard A
Slide 32: PG&E Utility Securitization Program
PG&E Utility Securitization Program The Utility has completed $10.7B of securitization issuances Rate Neutral Securitization AB 1054 CapEx Securitization A.20-04-023 Complete A.22-03-010 Complete ▪ SB 901 signed into law ▪ AB 1054 signed into law on July 12, 2019 Statutory on September 21, 2018 Auth
Slide 33: California Wildfire Risk Framework
California Wildfire Risk Framework 93%3 AB 1054 Provides PG&E Self-Insurance Proven Mitigations Constructive Stakeholder Liquidity, Cost Recovery, Limits Exposure Reducing Wildfire Risk Engagement and Capped Liability • Wildfire Fund offers • Since 2023, claims up to • Annual Wildfire Mitigation • W
Slide 34: Regulatory Progress
Regulatory Progress Regulatory Case/Filing Docket Status as of November 2024 Expected Milestones 2023 GRC A.21-06-021 ▪ 2023 GRC Application filed 6/30/21 ▪ Wildfire Self-Insurance Final Decision received 1/12/23 ▪ Final Decision received 11/16/23 ▪ “Capacity Phase” Final Decision received 7/11/24 2
Slide 35: Appendix: Supplemental Non-GAAP Information
Appendix 3 Supplemental Non-GAAP Information 35
Slide 36: Supplemental Earnings Materials
Supplemental Earnings Materials Exhibit Title Slide (Link) Reconciliation of PG&E Corporation's Consolidated Earnings Available Exhibit A for Common Shareholders in Accordance with Generally Accepted Slides 37-40 Accounting Principles (“GAAP”) to Non-GAAP Core Earnings Exhibit B Key Drivers of PG&E
Slide 37: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Third Quarter, 2024 vs. 2023 (in millions, except per share amounts) Three Months Ended Nine Months E
Slide 38: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 39: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 40: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 41: Exhibit B: Key Drivers of Non-GAAP Core EPS
Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Earnings per Common Share ("EPS") Earnings per Common Share ("EPS") Third Quarter, 2024 vs. 2023 (in millions, except per share amounts) Third Quarter 2024 vs. 2023 Year to Date 2024
Slide 42: Exhibit C: 2024 and 2025 Earnings Guidance
Exhibit C: PG&E Exhibit Corporation's C: PG&E 2024 Corporation's 2024 andEarnings Guidance 2025 Earnings Guidance 2024 2025 EPS guidance Low High Low High Estimated EPS on a GAAP basis ~ $ 1.09 ~ $ 1.14 ~ $ 1.30 ~ $ 1.36 Estimated non-core items: (1) Amortization of Wildfire Fund contribution (2) ~
Slide 43: Exhibit C: 2024 and 2025 Earnings Guidance
Exhibit C: PG&E Exhibit Corporation's C: PG&E 2024 Corporation's 2024 andEarnings Guidance 2025 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) “Bankruptcy and legal costs” consists of legal and other costs associated with PG&E Corporation’s and the Utility’s Chap
Slide 44: Exhibit C: 2024 and 2025 Earnings Guidance
Exhibit C: PG&E Exhibit Corporation's C: PG&E 2024 Corporation's 2024 andEarnings Guidance 2025 Earnings Guidance (5) “Investigation remedies” includes the settlement agreement resolving the Safety and Enforcement Division’s investigation into the 2020 Zogg fire, the Wildfires OII decision different
Slide 45: Exhibit C: 2024 and 2025 Earnings Guidance
Exhibit C: PG&E Exhibit Corporation's C: PG&E 2024 Corporation's 2024 andEarnings Guidance 2025 Earnings Guidance (7) “Tax-related adjustments” includes tax expense costs associated with the deductibility of certain customer bill credits issued in connection with the San Bruno natural gas explosion
Slide 46: Exhibit D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
Exhibit Exhibit D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Year to Date, 2024 vs. 2023 Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2024 2023 2024 2023 PG&E Corporation
Slide 47: Exhibit E: Non-GAAP Financial Measures
Exhibit E:E:Non-GAAP Exhibit Financial Non-GAAP Financial MeasuresMeasures Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance 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