Slide 1: First Quarter Earnings Call
FIRST QUARTER EARNINGS CALL May 2, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This slide presentation contains 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 growth, dividend policy, and general earnings sensitivities. These
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: Q1 2017 Earnings Results
Q1 2017 Earnings Results Earnings EPS (millions) Earnings on a GAAP basis $ 576 $ 1.13 Items Impacting Comparability Pipeline related expenses 16 0.03 Legal and regulatory related expenses 2 0.00 Fines and penalties 36 0.07 Butte fire related costs, net of insurance 2 0.00 GT&S revenue timing impact
Slide 5: Q1 2017: Quarter over Quarter Comparison
Q1 2017: Quarter over Quarter Comparison Earnings per Share from Operations $1.20 $0.05 $0.03 $0.06 $0.15 ($0.03) ($0.02) $1.00 $0.80 $0.60 $1.06 $0.40 $0.82 $0.20 $0.00 Q1 2016 EPS from Timing of 2015 Tax Benefit on Growth in Rate Miscellaneous Timing of 2017 Increase in Q1 2017 EPS from Operations
Slide 6: 2017 Earnings Per Share Guidance
2017 Earnings Per Share Guidance Low High Estimated EPS on a GAAP Basis $ 3.57 $ 3.82 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 costs, net of insurance 0.00 0.00
Slide 7: 2017 Assumptions
2017 Assumptions Capital Expenditures Authorized Ratebase (weighted average) ($ millions) ($ billions) 2017 2017 General Rate Case 3,900 General Rate Case 24.6 Gas Transmission and Storage 1,000 Gas Transmission and Storage 3.0 Transmission Owner 18 1,100 Transmission Owner 6.8 Total Cap Ex ~$6 bill
Slide 8: 2017 Items Impacting Comparability
2017 Items Impacting Comparability ($ millions, pre-tax) 2017 Pipeline related expenses (1) 80 - 125 Legal and regulatory related expenses ~ 10 Fines and penalties (2) ~ 60 Butte fire related costs, net of insurance 3 GT&S revenue timing impact (150) Net benefit from derivative settlement ~ (65) 201
Slide 9: 2017 Equity Issuance
2017 Equity Issuance ~$800M $400 - 600M - San Bruno Penalty - GT&S Capital Disallowance + Capital Expenditures 2016 2017 March 31, 2017 shares outstanding: ~511 million See the Forward Looking Statements for factors that could cause actual results to differ materially from the guidance presented and
Slide 10: Robust Cap Ex Supports Strong Returns
Robust Cap Ex Supports Strong Returns Capital Expenditures ($ in B) 2017-2019 ~$6B ~$6B ~$6B 2017 2018 2019 General Rate Case Gas Transmission & Storage Electric Transmission Owner Range See the Forward Looking Statements for factors that could cause actual results to differ materially from the guid
Slide 11: Ratebase Supports Strong Returns
Ratebase Supports Strong Returns Weighted Average Ratebase ($ in B) Base Case Assumptions: 2017-2019 • 2017 General Rate Case settlement 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 a
Slide 12: Dividend Policy Supports Strong Total Shareholder Return
Dividend Policy Supports Strong Total Shareholder Return + ~8% ~60% Payout Ratio $1.96 $1.82 2015 2016 2019 Targeting 55-65% payout ratio over time See the Forward Looking Statements for factors that could cause actual results to differ materially from the guidance presented and underlying assumptio
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 GAAP to Earnings from Operations Exhibit B: Key Drivers of PG&E Corporation’s Earnings per Common Share Slide 17 from Opera
Slide 15: A: Reconciliation of GAAP Income 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 Three Months Ended March 31, First Quarter, 2017 vs. 2016 (in millions, except per share
Slide 16: A: Reconciliation of GAAP Income to Earnings from Operations (Page 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 (in millions, pre-tax) March 31, 2017 Charge for disallowed expense $
Slide 17: B: Key Drivers of EPS from Operations
Exhibit B: Key Drivers of PG&E Corporation’s Earnings per Common Share (“EPS”) from Operations First Quarter, 2017 vs. 2016 ($/Share, Diluted) First Quarter 2016 EPS from Operations (1) $ 0.82 (2) Timing of 2015 GT&S revenue impact 0.15 (3) Tax benefit on stock compensation 0.06 Growth in rate base
Slide 18: C: Operational Performance Metrics
Exhibit C: Operational Performance Metrics Meets YTD First Quarter 2017 Q1 Actual EOY Target Target (1) Safety (includes both public and employee safety metrics) Nuclear Operations Safety Unit 1 Performance Indicator 100.0 90.5 P Unit 2 Performance Indicator 90.0 87.6 P Electric Operations Safety El
Slide 19: Definitions of 2017 Operational Performance Metrics from Exhibit C
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: D: Sales and Sources Summary
Exhibit D: Pacific Gas and Electric Company Sales and Sources Summary First Quarter, 2017 vs. 2016 Three Months Ended March 31, 2017 2016 Sales from Electric Energy Deliveries (in millions kWh) 19,538 19,540 Total Electric Customers at March 31 5,374,780 5,333,298 Total Gas Sales (in Bcf) 227 226 To
Slide 21: E: 2017 Earnings per Share Guidance
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 $ 3.57 $ 3.82 Estimated Items Impacting Comparability: (1) Pipeline related expenses (2) 0.14 0.09 Legal and regulatory related expenses (3) ~ 0.01 ~ 0.01 Fines and pen
Slide 22: E: 2017 Earnings per Share Guidance (Page 2)
Exhibit E: PG&E Corporation’s 2017 Earnings per Share Guidance Page 2 of 2 (5) “Butte fire related costs, net of insurance” includes recorded legal costs of $3 million during the three months ended March 31, 2017, associated with the Butte fire, net of insurance. The Utility currently is unable to e
Slide 23: 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: 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: 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: 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: 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 Integrated Resource Plan / Long Term R.16-02-007 Feb 11, 2016 – CPUC opens Order Instituting Rulemaking Procurement Plan Mar 14, 2016 – Comments due on OIR May 26, 2016
Slide 28: 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 NDCTP A.16-03-006 Aug 25, 2016 – Intervenor Testimony Sep 12, 2016 – PG&E Rebuttal Testimony Sep 19-23, 2016 – Evidentiary Hearings Oct 14, 2016 – Opening Briefs Oct 31