Slide 1: 2021 Third Quarter Earnings
2021 THIRD QUARTER EARNINGS November 1, 2021
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 2021 non-GAAP core earnings) as well as forecasts and estimates regarding PG&E Corporation’s and Pacific Gas and Electric Company’
Slide 3: 2021: Our Focus on People, the Planet, and Prosperity
® 2021: Our Focus on People, the Planet, and Prosperity Confirming 2021 non-GAAP core EPS guidance of $0.95-$1.05 Responding to extreme drought conditions this year Delivering on our 2021 Wildfire Mitigation Plan Developing our lean operating system See the Forward-Looking Statements for factors tha
Slide 4: PSPS Implementation
® PSPS Implementation WEATHER STATIONS HD CAMERAS SECTIONALIZING DEVICES 1,277 481 1,173 1,005 349 885 627 133 228 1 1 1 2019 2020 2021 2019 2020 2021 2019 2020 2021 TOTAL STATIONS TOTAL CAMERAS TOTAL DEVICES 1,277 INSTALLED 481 INSTALLED 1,173 INSTALLED 91% Complete YTD 98% Complete YTD 103% Comple
Slide 5: A Balanced Approach To Mitigation Work
® A Balanced Approach To Mitigation Work As system hardening and vegetation management work progresses, expect PSPS events to decline 100% – 1 96% – Our 2021 PSPS PSPS use algorithm captured and may have prevented catastrophic fires. undergrounding, system hardening, Wildfire Risk vegetation managem
Slide 6: Enhanced Powerline Safety Settings (EPSS)
® Enhanced Powerline Safety Settings (EPSS) IGNITION REDUCTIONS IMPROVED PROTOCOLS Based on 2021 actual relative to most recent three-year average for July 28-October 17 Higher circuit sensitivity- Enhanced Powerline Safety 46% 80% Decrease in Settings Decrease in CPUC CPUC reportable reportable ign
Slide 7: Wildfire Mitigation Plan
® Wildfire Mitigation Plan ENHANCED INSPECTIONS ENHANCED VEGETATION SYSTEM HARDENING TIER 2 & 3 MANAGEMENT 5,656 655 4,376 530 2,498 188 477K 1 1 2021 1 2019 2020 2021 2019 2020 2021 TOTAL POLES INSPECTED TOTAL LINE MILES TOTAL LINE MILES 477K IN TIER 2 & 3 HFTD 5,656 COMPLETED 655 HARDENED ROUTINE
Slide 8: AB1054 Downside Protections
® AB1054 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 Presentation endnotes are included in Appendix 8. Wildfire safety certificate off
Slide 9: Q3 2021 Earnings Results
® Q3 2021 Earnings Results Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 (in millions, except per share amounts) Earnings EPS Earnings EPS PG&E Corporation’s Loss on a GAAP basis $ (1,091) $ (0.55) $ (574) $ (0.29) Non-core items: Bankruptcy and legal costs 1,307 0.66 1,
Slide 10: Dixie Fire Recovery Sources
® Dixie Fire Recovery Sources Recovery Sources $1.15B1 $1.15B $150M $1B WF Fund AB1054 Wildfire Fund Threshold $339M WEMA Recovery2 $98M FERC Rates PG&E Insurance Policies $569M Dixie Liability Recovery Sources Note: Amounts may not sum due to rounding. Presentation endnotes are included in Appendix
Slide 11: Q3 2021 Quarter over Quarter Comparison
® Q3 2021 Quarter over Quarter Comparison Non-GAAP Core Earnings per Share $0.30 $0.01 ($0.01) $0.02 ($0.02) $0.03 $0.25 $0.24 $0.22 $0.21 $0.20 $0.15 $0.26 $0.24 $0.22 $0.10 $0.26 $0.05 $0.00 Q3 2020 Non-GAAP Growth in rate base Change in shares Wildfire mitigation Timing of taxes Miscellaneous Q3
Slide 12: 2021 Factors Impacting Earnings
® 2021 Factors Impacting Earnings ~$47.2B ~$44.5B 10.25% ~$2.1-$2.25B $0.95-$1.05 Equity Earning Ratebase (1) Equity Earning Ratebase (1) Authorized CPUC ROE across Non-GAAP Core Earnings Non-GAAP Core EPS the Enterprise (2) Key Factors Affecting Non-GAAP Core Earnings Non-Core Items(5) ($ millions
Slide 13: Balance Sheet Improvements
® Balance Sheet Improvements Cost Recovery Wildfire Costs - Regulatory Account Totals In Billions In Millions CEMA $989 $989 Yet to be Filed ~$0.91 WMPMA $385 $515 VMBA $690 $967 WEMA $454 $804 FHPMA $74 $155 Non-Current Filed, net of Interim ~$1.8 Rate Relief ~$4.4B WMBA $208 $250 Current RTBA $234
Slide 14: Multi-Year Financial Plan
® Multi-Year Financial Plan Non-GAAP Core EPS 10% ~$44.5B CAGR ~8.5% Ratebase CAGR Parent De-leveraging Equity Earning Ratebase (1) CapEx ($B) (1) Subject to Ongoing and Future Recovery Requests projected $7.9-$10.3(3) $7.8-$9.6 $7.9-$9.6 $8.0-$9.6 $7.5-$8.5 $7.8-$8.9 • 2023 GRC request including Wi
Slide 15: People, Planet, Prosperity Underpinned by Performance
® People, Planet, Prosperity Underpinned by Performance Confirming 2021 non-GAAP core 46% 80% EPS guidance of $0.95-$1.05 Decrease in Decrease in CPUC reportable CPUC reportable ignitions across ignitions across 800 circuits 169 circuits Responding to extreme drought (~25,000 miles) (~11,000 miles)
Slide 16: Appendix
[t PG&E Corporation Appendix
Slide 17: Table of Contents
® Table of Contents Appendix 1 - AB1054 Wildfire Fund Slide 18 Appendix 2 - Illustrative Wildfire Fund Scenarios Slide 19 Appendix 3 - Regulatory Progress Slide 20 Appendix 4 - PG&E Catastrophic Wildfire Cost Securitization Slide 21 Appendix 5 - PG&E Wildfire Mitigation Capex Securitization Slide 22
Slide 18: Appendix 1: AB1054 Wildfire Fund
® Appendix 1: AB1054 Wildfire Fund1 Wildfire Fund Contribution Treatment Total Funding and Participation • Contribution amounts amortized based on an assumed ~15-year life 2 Wildfire Fund Funding Sources ($B) Additional IOU Ongoing Funding over 10 Contribution • Tax treatment pending private letter
Slide 19: Appendix 2: Illustrative Wildfire Fund Scenarios
® Appendix 2: 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 Determined: P
Slide 20: Appendix 3: Regulatory Progress
® Appendix 3: Regulatory Progress Regulatory Status as of Expected Milestones1 Case/Filing October 2021 2021 2022 2023 Proposed Decision Expected GRC 2023 GRC Filed 6/30/21 Q2 2023 2019 Final Decision GT&S Proposed Decision Expected GT&S Capital Audit Settlement Q4 2021 2022 Application Filed 8/23/2
Slide 21: Appendix 4: PG&E Catastrophic Wildfire Cost Securitization
® Appendix 4: 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 22: Appendix 5: PG&E Wildfire Mitigation Capex Securitization
® Appendix 5: 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, with authority to issue the first trans
Slide 23: Appendix 6: COVID-19 Impacts
® Appendix 6: 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 Cur
Slide 24: Appendix 7: Expected Timelines of Selected Regulatory Cases
® Appendix 7: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates June 30, 2021 – Application filed October 1, 2021 – Scoping Memo Issued May 16-31, 2022 – Evidentiary Hearings 2023 General Rate Case (Phase I) A.21-06-021 August/September 2022 – Opening & Reply Briefs
Slide 25: Appendix 7: Expected Timelines of Selected Regulatory Cases
® Appendix 7: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 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 Briefs
Slide 26: Appendix 7: Expected Timelines of Selected Regulatory Cases
® Appendix 7: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Jul 29, 2016 – PG&E filed TO18 rate case seeking an annual revenue requirement for 2017 Sep 30, 2016 – FERC accepted TO18 making rates effective Mar 1, 2017 and establishing settlement process Feb 7-8, 2
Slide 27: Appendix 7: Expected Timelines of Selected Regulatory Cases
® Appendix 7: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Sept 30, 2020 - Application Filed Dec 15, 2020 - Scoping Memo issued Feb 26, 2021 - Intervenor Testimony Served Mar 19, 2021 – PG&E’s Rebuttal Testimony Served Apr 12, 2021 - Evidentiary Hearing sche
Slide 28: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide 4: PSPS Implementation 1. Data is year to date as of September 30, 2021. Slide 5: A Balanced Approach To Mitigation Work 1. Reflects application of 2021 PSPS protocols to wildfires larger than 1,000 acres that were caused by overhead electrical equipment in
Slide 29: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide 14: Multi-Year Financial Plan 1. Low end of the range reflects authorized capital expenditures, including the full amount recoverable through a balancing account where applicable. High end of the range includes capital spend above authorized and reflects the
Slide 30: 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 31-34 ("GAAP") to Non-GAAP Core Earnings Exhibit B: Key Drivers of PG&E Co
Slide 31: 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 Third Quarter, 2021 vs. 2020 (in millions, except per share amounts) Three Months Ended Ni
Slide 32: 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 Third Quarter, 2021 vs. 2020 (in millions, except per share amounts) (2) PG&E Corporation
Slide 33: 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 Third Quarter, 2021 vs. 2020 (in millions, except per share amounts) (4) The Utility incur
Slide 34: 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 Third Quarter, 2021 vs. 2020 (in millions, except per share amounts) (6) The Utility incur
Slide 35: 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") Third Quarter, 2021 vs. 2020 (in millions, except per share amounts) Third Quarter 2021 vs. 2020 Year to Date 2021 vs. 2020 Earnings per Earnings per Earnings Common Share Earnings Common Share (Diluted) (
Slide 36: Exhibit C: Operational Performance Metrics
® Exhibit C: Operational Performance Metrics 2021 Performance Results YTD Actual 2021 Target Meets YTD Target Customer Welfare - prioritizing public and employee safety Electric Operations Wildfire Risk Reduction (1) — 2 P Wire-Down Events Due to Equipment Failure Rate 2.347 2.161 Gas Operations Lar
Slide 37: 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 38: 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 PG&E personnel respond (are on site) within 60 minutes after receiving a 911 call, with
Slide 39: Exhibit D: Sales and Sources Summary
® Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary Third Quarter, 2021 vs. 2020 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Sales from Energy Deliveries (in millions kWh) 23,214 23,025 59,400 59,196 Total Electric Customers at September 30
Slide 40: Exhibit E: 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance 2021 EPS Guidance Low High Estimated Earnings (Loss) on a GAAP basis $ (0.12) $ 0.07 Estimated Non-Core Items: (1) Bankruptcy and legal costs (2) ~ 0.67 ~ 0.66 Amortization of Wildfire Fund contribution (3) ~ 0.18 ~ 0.18 Investigation remedies (
Slide 41: Exhibit E: 2020 and 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) "Amortization of Wildfire Fund contribution” represents the amortization of Wildfire Fund contributions related to AB1054. The total offsetting tax impact for the low and high non
Slide 42: Exhibit E: 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance (6) “Prior period net regulatory recoveries" represents the recovery of capital expenditures from 2011 through 2014 above amounts adopted in the 2011 GT&S rate case, offset by the impact of adjustments related to wildfire response and mitigation
Slide 43: Exhibit F: General Earnings Sensitivities for 2021
® Exhibit F: General Earnings Sensitivities for 2021 Pacific Gas & Electric Company Variable Description of Change Estimated 2021 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 +/- $25 million
Slide 44: Exhibit G: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
® Exhibit G: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Third Quarter, 2021 vs. 2020 Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 PG&E Corporation’s Net Income (Loss) on a GAAP basis $ (1,088) $ 86 $ (564) $ (1,50
Slide 45: 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