Slide 1: 2021 Fourth Quarter and Full Year Earnings
2021 FOURTH QUARTER AND FULL YEAR EARNINGS February 10, 2022
Slide 2: Forward-Looking Statements
® Forward-Looking Statements This presentation contains statements regarding management’s expectations and objectives for future periods (including key factors affecting 2022 non-GAAP core earnings) as well as forecasts and estimates regarding PG&E Corporation’s and Pacific Gas and Electric Company’
Slide 3: 2021: Meeting Our Commitments
® 2021: Meeting Our Commitments MEETING OUR COMMITMENTS TEAM Implemented Lean across the company REGIONAL SERVICE MODEL Focused on hometown delivery WILDFIRE MITIGATION Responded to changing conditions CALIFORNIA Partnered with customers and policymakers FINANCIAL 2021 Non-GAAP Core EPS1 of $1.00 Pr
Slide 4: Simple, Affordable Model
® Simple, Affordable Model FUTURE OPPORTUNITIES Capital Investments for our Customers 9% Long-Term Factors Offset Customer Impacts: -O&M cost reduction (non-fuel)1 2% -Electric load growth2 ~1% - 3% -Other (including efficient financing)3 ~2% Subtotal ~5% - 7% Customer Impacts at or Below Assumed In
Slide 5: Report Card
® Report Card Metric 2022 Goal 2022-2026 Goal Annual CPUC Reportable Ignitions greater than or equal to 100 acres1 0 0 Wildfire Undergrounding Circuit Miles2 175 3,600 Gas Distribution Main Replacement Miles 220 1,150 Customer Annual O&M Cost Reduction (Non-Fuel)3 2% 2% Annual EPS Growth and Dividen
Slide 6: Enhanced Powerline Safety Settings (EPSS)
® Enhanced Powerline Safety Settings (EPSS) Decrease in CPUC reportable Decrease in CPUC reportable 80% ignitions across 169 circuits (~11,000 miles) where EPSS was first implemented 40% ignitions across 800 circuits (~25,000 miles) traversing high fire threat districts Based on 2021 actuals relativ
Slide 7: Progress On Our Wildfire Mitigation Plan
® Progress On Our Wildfire Mitigation Plan 100% – 1 96% – PSPS use Undergrounding, Wildfire System Hardening, Risk Vegetation Management, Inspection and Repairs Minimal PSPS 0% – – Last resort Time EVENT DETAILS 2019 2020 2021 PSPS EVENTS 7 6 5 CUSTOMERS IMPACTED ~2,014,000 653,000 80,400 DAMAGE/HAZ
Slide 8: Undergrounding: Bold, Innovative Action
® Undergrounding: Bold, Innovative Action Target Miles Per Year Target Cost Per Mile 1,400 1,200 • Optimize design 1,200 $3.75M and construction 1,000 1,000 standards 800 800 • Bundle work 600 400 $2.5M strategically 400 175 200 70 • Deploy new 0 technology and 2021 2022 2023 2024 2025 2026 2022 202
Slide 9: Increasing Customer Investment
® Increasing Customer Investment Undergrounding and potential 2022-2026 CapEx growth opportunities driving increase in CapEx 1 $53B Electric & Gas Distribution, Electric Generation Electric 2017-2021 CapEx Transmission $35B Electric & Gas Distribution, Gas Transmission Electric Generation & Storage
Slide 10: Q4 2021 Earnings Results
® Q4 2021 Earnings Results Three Months Ended Year Ended December 31, 2021 December 31, 2021 (in millions, except per share amounts) Earnings EPS Earnings EPS PG&E Corporation’s Earnings (Loss) on a GAAP basis $ 472 $ 0.22 $ (102) $ (0.05) Non-core items: Amortization of Wildfire Fund contribution 8
Slide 11: Q4 2021 Quarter over Quarter Comparison
® Q4 2021 Quarter over Quarter Comparison Non-GAAP Core Earnings per Share $0.01 ($0.03) $0.02 $0.02 ($0.01) $0.26 $0.03 $0.24 $0.22 $0.21 $0.03 $0.28 $0.21 $0.26 Q4 Q4 2020 2020 Non- Regulatory Timing Regulatory Timing of CostCost of taxes reduction Timing Timing of of Miscellaneous Misc. Growth Gr
Slide 12: Expected Recovery of Wildfire-Related Costs
® Expected Recovery of Wildfire-Related Costs $ in Millions Approved Applications (Final Decisions) Expected Cash Flow Rate Recovery by Year Recovery from Balance at Recovery Previously Incurred Application 12/31/21 Through 2022 Wildfire-Related Spend 2020 WEMA 440 Oct. 2022 440 GRC Track 1 810 Dec.
Slide 13: 2022 Factors Impacting Earnings
® 2022 Factors Impacting Earnings ~$49.8B 10.25% ~$2.28-$2.4B $1.07-$1.13 Equity Earning Rate Base (1) CPUC authorized ROE pending resolution Non-GAAP Core Earnings Non-GAAP Core EPS of the 2022 Cost of Capital filing (2) Key Factors Affecting Non-GAAP Core Earnings Non-Core Items(4) ($ millions aft
Slide 14: Multi-Year Financial Plan
® Multi-Year Financial Plan Rate base Non-GAAP Core EPS ~9% CAGR 10% Growth and Dividend Yield Debt Paydown Weighted average rate base ($B) Potential Growth Opportunities projected • Undergrounding ~9% CAGR on equity rate base 2021-2026 $65-$77 $62-$71 • Additional wildfire mitigation (including rem
Slide 15: People, Planet, Prosperity Underpinned by Performance: Setting Specific Goals
® People, Planet, Prosperity Underpinned by Performance: Setting Specific Goals 100% 9% ~9% EPSS on all distribution line Capital Investments for our Rate Base CAGR miles in high fire threat districts Customers AND AND AND 10,000 ~2-4% 10% Customer Impacts at or Below Non-GAAP Core EPS Growth Underg
Slide 16: Appendix
[t PG&E Corporation Appendix
Slide 17: Table of Contents
® Table of Contents Appendix 1 AB1054 Wildfire Fund Slide 18-21 Appendix 2 Wildfire Mitigation Plan Progress Slide 22 Appendix 3 PG&E Catastrophic Wildfire Cost Securitization Slide 23 Appendix 4 P&E Wildfire Mitigation Capex Securitization Slide 24 Appendix 5 COVID-19 Impacts Slide 25 Appendix 6 Re
Slide 18: Appendix 1: AB1054 Downside Protections
® Appendix 1: AB1054 Downside Protections Downside protections Effective risk Approved wildfire Wildfire safety reducing plan mitigation plan certificate Maximum liability Liquidity to pay Improved prudency cap for fund claims standard1 reimbursement2 18 Presentation endnotes are included in Appendi
Slide 19: Appendix 1: AB1054 Financial Analysis
® Appendix 1: AB1054 Financial Analysis 6+ Years 3-Year of limited liquidity impact Cap on additional reimbursements Reimburse Wildfire Fund Catastrophic (Up to 20% of Electric Wildfire T&D Rate Base Equity)(1) Y0 Y6 Y9 Cap on additional CalFire Legal CPUC reimbursements Investigation Resolution Pro
Slide 20: Appendix 1: AB1054 Illustrative Wildfire Fund Scenarios
® Appendix 1: AB1054 Illustrative Wildfire Fund Scenarios California’s Wildfire Fund application depends on the total amount of claims and the CPUC’s determination of whether utility conduct was reasonable and prudent Claims Fund Pays Victims: PG&E Corporation CPUC Finds PG&E CPUC Finds PG&E Determi
Slide 21: Appendix 1: AB1054 Funding and Participation
® Appendix 1: AB1054 Funding and Participation1 Wildfire Fund Contribution Treatment Total Funding and Participation • Contribution amounts amortized based on an assumed ~15-year life 2 Wildfire Fund Funding Sources ($B) Additional IOU Ongoing Funding over 10 Contribution Years PG&E Pre-Emergence Wi
Slide 22: Appendix 2: Wildfire Mitigation Plan Progress
® Appendix 2: Wildfire Mitigation Plan Progress Sectionalizing Devices Weather Stations 1,195 1,313 885 1,005 1,195 1,313 627 Devices 228 Stations Installed Installed 2019 2020 2021 1 2019 2020 2021 1 Enhanced Vegetation HD Cameras Management 6,359 502 4,376 349 6,359 2,498 502 133 Lines Miles Camer
Slide 23: Appendix 3: PG&E Catastrophic Wildfire Cost Securitization
® Appendix 3: PG&E Catastrophic Wildfire Cost Securitization Assuming legal approval consistent with CPUC, PG&E plans to sponsor the issuance of up to $7.5 billion of recovery bonds (the “Recovery Bonds”) through securitization to reimburse certain wildfire costs Summary of Key Securitization Terms
Slide 24: Appendix 4: PG&E Wildfire Mitigation Capex Securitization
® Appendix 4: PG&E Wildfire Mitigation Capex Securitization PG&E plans to sponsor the issuance of up to $3.2 billion of recovery bonds (the “Recovery Bonds”) through securitization to reimburse certain capital expenses associated with wildfire risk mitigation Summary of Key Securitization Terms PG&E
Slide 25: Appendix 5: COVID-19 Impacts
® Appendix 5: COVID-19 Impacts Overall, PG&E’s key wildfire mitigation and safety work execution has not been impacted by COVID-19. California's constructive regulatory framework minimizes potential earnings impacts from reduced load and higher uncollectibles Key Areas Potential Business Impact Curr
Slide 26: Appendix 6: Regulatory Progress
® Appendix 6: Regulatory Progress Regulatory Status as of Expected Milestones1 Case/Filing February 2022 2022 2023 2024 2023 GRC Filed 6/30/21 Proposed Decision Expected GRC Supplemental filing mid- Q2 2023 February 2022 2019 Final Decision GT&S Proposed Decision Expected GT&S Capital Audit Settleme
Slide 27: Appendix 7: Expected Timelines of Selected Regulatory Cases
® Appendix 7: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket Key Dates Regulatory Event June 30, 2021 Application filed October 1, 2021 Scoping Memo Issued February 25, 2022 Supplemental Testimony 2023 General Rate Case A.21-06-021 May 16-31, 2022 Evidentiary Hearings (Phase
Slide 28: Appendix 7: Expected Timelines of Selected Regulatory Cases
® Appendix 7: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket Key Dates Regulatory Event Apr 30, 2020 Application filed Oct 14, 2020 Intervenors' Testimony Nov 11, 2020 PG&E Rebuttal Testimony Dec 7-16, 2020 Evidentiary Hearing Jan 15, 2021 Opening Briefs Feb 1, 2021 Reply Bri
Slide 29: Appendix 7: Expected Timelines of Selected Regulatory Cases
® Appendix 7: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket Key Dates Regulatory Event July 29, 2016 PG&E filed TO18 rate case seeking an annual revenue requirement for 2017 September 30, 2016 FERC accepted TO18 making rates effective Mar 1, 2017 and establishing settlement
Slide 30: Appendix 7: Expected Timelines of Selected Regulatory Cases
® Appendix 7: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket Key Dates Regulatory Event September 30, 2020 Application Filed General Office Sale A.21-06-021 December 15, 2020 Scoping Memo issued Section 851 July 23, 2021 Proposed Decision Issued August 19, 2021 Final Decis
Slide 31: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide 3: 2021 Meeting Our Commitments 1. Non-GAAP Core EPS for the full year 2021 was $1.00 per share on a fully diluted basis and $1.08 using a basic share count. Non-GAAP core EPS is not calculated in accordance with GAAP and excludes non-core items. See Appendi
Slide 32: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide 13: 2022 Factors Impacting Earnings 1. 2022 equity earning rate base reflects 2020 GRC Final Decision, 2019 GT&S Final Decision, the April 15, 2021 FERC order denying the Utility's request for rehearing related to TO18, and TO20 Formula Rate. 2. Base earning
Slide 33: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide 22: Appendix 1 – AB1054 Funding & Participation 1. Participation in the AB1054 Wildfire Fund is subject to the Utility making the required annual contributions to the Fund and maintaining reasonable insurance coverage. 2. The useful life of the Wildfire Fund
Slide 34: Appendix 9: Supplemental Earnings Materials
® Appendix 9: Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Exhibit A: Common Shareholders in Accordance with Generally Accepted Accounting Principles Slides 35-39 ("GAAP") to Non-GAAP Core Earnings Exhibit B: Key Drivers of PG&E Co
Slide 35: Exhibit A: Reconciliation of GAAP Earnings to Non-GAAP Core 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 Core Earnings Fourth Quarter and Year to Date, 2021 vs. 2020 (in millions, except per share amounts) Thr
Slide 36: Exhibit A: Reconciliation of GAAP Earnings to Non-GAAP Core 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 Core Earnings Fourth Quarter and Year to Date, 2021 vs. 2020 (in millions, except per share amounts) (2)
Slide 37: Exhibit A: Reconciliation of GAAP Earnings to Non-GAAP Core 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 Core Earnings Fourth Quarter and Year to Date, 2021 vs. 2020 (in millions, except per share amounts) (4)
Slide 38: Exhibit A: Reconciliation of GAAP Earnings to Non-GAAP Core 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 Core Earnings Fourth Quarter and Year to Date, 2021 vs. 2020 (in millions, except per share amounts) (5)
Slide 39: Exhibit A: Reconciliation of GAAP Earnings to Non-GAAP Core 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 Core Earnings Fourth Quarter and Year to Date, 2021 vs. 2020 (in millions, except per share amounts) (6)
Slide 40: Exhibit B: Key Drivers of Non-GAAP Core EPS
® Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Earnings per Common Share ("EPS") Fourth Quarter and Year to Date, 2021 vs. 2020 (in millions, except per share amounts) Fourth Quarter 2021 vs. 2020 Year to Date 2021 vs. 2020 Earnings per Earnings per Earnings Common Share Earnings Commo
Slide 41: Exhibit C: Operational Performance Metrics
® Exhibit C: Operational Performance Metrics 2021 Performance Results 2021 Actual 2021 Target Meets Target Customer Welfare - prioritizing public and employee safety Electric Operations Wildfire Risk Reduction (1) 3 2 Wire-Down Events Due to Equipment Failure Rate 2.550 2.161 Gas Operations Large Ov
Slide 42: Definitions of 2021 Operational Performance Metrics from Exhibit C
® Definitions of 2021 Operational Performance Metrics from Exhibit C Customer Welfare – prioritizing public and employee safety Public and employee safety are measured in five areas: Electric Operations, Gas Operations, Generation, Reliability, and Workforce Safety. The safety of the Utility’s elect
Slide 43: Definitions of 2021 Operational Performance Metrics from Exhibit C
® Definitions of 2021 Operational Performance Metrics from Exhibit C Customer Welfare – prioritizing public and employee safety (continued) • Electric 911 Emergency Response – Measures the percentage of time that Utility personnel respond (are on site) within 60 minutes after receiving a 911 call, w
Slide 44: Exhibit D: Pacific Gas & Electric Sales and Sources Summary
® Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary Fourth Quarter and Year to Date, 2021 vs. 2020 Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Sales from Energy Deliveries (in millions kWh) 19,189 19,299 78,589 78,497 Total Electric Customers at Dece
Slide 45: Exhibit E: PG&E Corporation's 2022 Earnings Guidance
® Exhibit E: PG&E Corporation's 2022 Earnings Guidance 2022 EPS Guidance Low High Estimated Earnings on a GAAP basis ~$ 0.89 ~ $ 1.23 Estimated Non-Core Items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.16 ~ 0.16 Bankruptcy and legal costs (3) ~ 0.09 ~ 0.04 Investigation remedies (4) ~ 0
Slide 46: Exhibit E: 2022 Earnings Guidance
® Exhibit E: PG&E Corporation's 2022 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) “Bankruptcy and legal costs" consists of exit financing costs including interest on temporary Utility debt and write-off of unamortized fees related to the retirement of PG&E Corp
Slide 47: Exhibit E: 2022 Earnings Guidance
® Exhibit E: PG&E Corporation's 2022 Earnings Guidance (5) “2019-2020 wildfire-related costs" includes legal and other costs associated with the 2019 Kincade fire. The total offsetting tax impact for the low and high non-core guidance range is $17 million and $4 million, respectively. 2022 Low guida
Slide 48: Exhibit F: General Earnings Sensitivities for 2022
® Exhibit F: General Earnings Sensitivities for 2022 Pacific Gas & Electric Company Variable Description of Change Estimated 2022 Non-GAAP Core Earnings Impact Rate base +/- $100 million change in allowed rate base +/- $5 million Return on Equity (ROE) +/- 0.1% change in allowed ROE +/- $26 million
Slide 49: Exhibit G: GAAP Net Loss to Non-GAAP Adjusted EBITDA Reconciliation
® Exhibit G: GAAP Net Loss to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Year to Date, 2021 vs. 2020 Year Ended December 31, (in millions) 2021 2020 PG&E Corporation’s Net Loss on a GAAP basis $ (88) $ (1,304) Income tax provision (benefit) 836 362 Other income, net (457) (483) Interes
Slide 50: Exhibit H: Use of Non-GAAP Financial Measures
® Exhibit H: 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 “non-GAAP core earnings” and “non-GAAP core EPS” in order to provide a meas