Slide 1: 2024 Investor Update
2024 Investor Update Delivering For Customers AND Investors June 12, 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 non-GAAP core earnings), equity needs, ra
Slide 3: Senior Executive Team
PG&E Corporation... Sumeet Singh Jason Glickman Carla Peterman Carolyn Burke EVP, Operations and Chief EVP, Engineering, EVP, Corporate Affairs and EVP, Chief Financial Officer Operating Officer Planning and Strategy Chief Sustainability Officer 1 year with PG&E 21 years with PG&E 3 years with PG&E
Slide 4: Delivering For Customers AND Investors
Delivering For Customers Decarbonized Energy System AND Investors Affordable and Resilient Energy Physical and Financial Safety 4
Slide 5: Physical And Financial Safety Panel Discussion
Physical And Financial Safety Panel Discussion With Patti Poppe Mark Quinlan Senior Vice President, John Simon Executive Vice President, Carla Peterman Executive Vice President, Wildfire, Emergency General Counsel and Corporate Affairs and and Operations Chief Ethics and Chief Sustainability Officer
Slide 6: Delivering For Customers AND Investors: Physical and Financial Safety
Delivering For Physical and Financial Safety Customers AND Wildfire Risk Mitigation Leader Investors AB 1054 Financial Protections Forward-Looking State Policy 6
Slide 7: Delivering For Customers AND Investors
Delivering For Customers AND Decarbonized Energy System Investors Affordable and Resilient Energy Physical and Financial Safety 7
Slide 8: 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 9: Simple, Affordable Model Amplified
Simple, Affordable Model Amplified Enabling Better Carolyn Burke Jason Glickman Outcomes For Executive Vice President and Chief Financial Officer Executive Vice President of Engineering, Planning and Strategy Customers AND Investors 9
Slide 10: 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 11: Five-Year $62B Capital Plan
Five-Year $62B Capital Plan… Weighted Average CapEx ($B)3 Rate Base ($B)1 $5B Plus At Least ~9.5% CAGR 2023-2028 $62B 2024-2028 Customer Beneficial CPUC CPUC Investment Opportunities4 FERC 90 FERC 14.0 82 13.6 12.7 73 11.5 68 Transportation Electrification 63 10.4 57 9.8 Capacity Investments 75 12.1
Slide 12: Transmission And Distribution Focus
Transmission And Distribution Focus… 2024 – 2028 2024 – 2028 $62B By Functional Area $62B By Customer Value Opportunity $5B BY FUNCTION $11B $17B $15B Safety Electric $35B Clean Energy Electric Transmission Transition Electric Transmission Distribution $9B $17B Capacity & New $13B Gas T&D Business R
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)22 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: 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 15: Our Performance Playbook
Our Performance Playbook… Realized Cost Savings From Our Performance Playbook Avoiding costs by doing the right work through changes to inspection strategy Optimizing workplan to bundle projects and perform more efficiently Driving down unit costs to execute the same amount of work with cost savings
Slide 16: 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 growth33 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 17: Accelerating Load Growth
Accelerating Load Growth… PG&E Load Growth Opportunity1 (TWh) Diversified Contributors to Load Growth 144 2023 - 2040 108 CAGR 87 Electric Vehicles 1.25% - 2% 73 77 Data Centers 0.5% - 1.5% Building Electrification 0.25% - 0.5% Total Load (TWh) 2% 4% 2% - 4% 2023 2025 2030 2035 2040 Endnotes are inc
Slide 18: Electric Vehicles Owned In PG&E's Service Area
Electric Vehicles Owned In PG&E’s Service Area… Electric Vehicle Ownership in PG&E’s Service Area1 600 580K 550 525K Thousands of Vehicles 500 Actual 450 Expected 400 350 300 250 2020 2021 2022 2023 Endnotes are included in the Appendix …Exceeding Prior Forecasts 18
Slide 19: Electric Vehicle Penetration In PG&E's Service Area
Electric Vehicle Penetration In PG&E’s Service Area… Projected % of New Car Sales that are Electric1 Projected % of Cars on Road that are Electric1 Faster 75% 100% Pace Faster Pace 75% 50% Slower Slower 50% Pace Pace 25% 25% California mandate for 100% sales of zero-emission passenger vehicles 0% 0%
Slide 20: Accelerating Efforts To Meet Customer Demand
Accelerating Efforts To Meet Customer Demand... Data Center Project Pipeline Key Drivers Richmond 35 MW The San Francisco Bay Area is 1 of 8 San Francisco primary data center markets in the US, 70 MW driven by: Hayward 975 MW ▪ Proximity to Silicon Valley Fremont ▪ Growing tech customer base 230 MW
Slide 21: Customer Data Center Pipeline
Customer Data Center Pipeline... Data Center Project Pipeline1 Site Location Data Center Request Load Requested (MW) Site Location Data Center Request Load Requested (MW) Customer 5 (2025) 70 Customer 13 (2025) 90 Customer 7 (2025) 20 Customer 12 (2026) 40 Fremont Customer 17 (2025) 10 Customer 1 (2
Slide 22: Uniquely Positioned On Building Electrification
Uniquely Positioned On Building Electrification... Overlapping Service Areas Key Drivers Electric PG&E is uniquely positioned as a Gas dual fuel utility to work with customers Electric & Gas on economic building electrification ▪ Identifying economic miles of pipeline for electrification ▪ Developin
Slide 23: New Load In PG&E's Service Area
New Load In PG&E’s Service Area… New Load Beneficial Load Data Centers Electric Vehicles Modeling Guidelines1 Incremental Load 1,000 MW 1M EVs System Capital Need $0.5B - $1.6B $1.5B - $2.0B Capital Needs New T&D Revenue from $450M $800M Incremental Load Less: Cost of Required ($100M - $250M) ($250M
Slide 24: Our Simple, Affordable Model
Our Simple, Affordable Model… PLAN1 OPPORTUNITY1 Customer Capital Investment ~9% 9% - 10% Enablers O&M cost reduction (non-fuel)2 2% 2% 2% -- 3% 3% Electric load growth3 1% - 3% 2% 2% -- 4% 4% 4 Other Other (including (including efficient efficient financing) financing)4 2% 2% 2% Subtotal 5% - 7% 6%
Slide 25: A Track Record Of Efficient Financing
A Track Record Of Efficient Financing… Sale of Transmission Tower FEB Wireless Licenses 2021 SEP San Francisco General 2021 Office Sale First AB 1054 NOV Future Opportunities Securitization 2021 MAY 2022 First Rate Neutral ▪ Investment Grade Credit Securitization Second Rate Neutral JUL ▪ DOE Loan P
Slide 26: Our Simple, Affordable Model
Our Simple, Affordable Model… PLAN1 OPPORTUNITY1 Customer Capital Investment ~9% 9% - 10% Enablers O&M cost reduction (non-fuel)2 2% 2% 2% -- 3% 3% Electric load growth3 1% - 3% 2% 2% -- 4% 4% Other (including efficient financing)4 2% 2% 2% Subtotal 5% - 7% 6% - 9% Customer Bills: At or 2% - 4% 1% 1
Slide 27: Earnings Guidance And Financing Plan
Earnings Guidance And Financing Plan… Non-GAAP Core EPS1 Five-Year Financing Plan Guidance Reaffirmed 2024 – 2028 Amount ($billions) $1.33 - $1.37 70 3 $62 14 2024 Guidance 60 $50 (2½) 50 11 (2½) At least At least 40 10% 9% 30 (11) 20 2024 2025 - 2028 10 No New Equity 0 Cash From Dividends Utility L
Slide 28: Delivering For Customers AND Investors: Decarbonized Energy System
Delivering For Decarbonized Energy System Customers AND Projected Change From 2023 to 2040 Investors CO2 Average Household Emissions1 Energy Cost2 (Tons) (Inflation Adjusted) ~65% ~20% Electrification Achieves Decarbonization At A Lower Societal Cost Endnotes are included in the Appendix 28
Slide 29: Delivering For Customers AND Investors
Delivering For Customers AND Decarbonized Energy System Investors Affordable and Resilient Energy Physical and Financial Safety 29
Slide 30: Q&A
bel) PG&E Corporation Q&A
Slide 31: Appendix: Presentation Endnotes
Appendix 1 Presentation Endnotes 31
Slide 32: Presentation Endnotes
Presentation Endnotes Slides 8, 10, 13, 16, 24, and 26: Our Simple, Affordable Model Slide titles are hyperlinks 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 efficienc
Slide 33: Presentation Endnotes
Presentation Endnotes Slide 19: Electric Vehicle Penetration In PG&E’s Service Area Slide titles are hyperlinks 1. Factors that may cause the Utility’s actual results to differ materially from its forecasts for electric vehicle includes: the availability of charging infrastructure, supply chain issu
Slide 34: Appendix: Speaker Biographies
Appendix 2 Speaker Biographies 34
Slide 35: Patti Poppe
Patti Poppe Chief Executive Officer Patti Poppe joined PG&E in January 2021 after five years as President and CEO of CMS Energy and its principal subsidiary, Consumers Energy, where she focused on connecting the utility more closely with its customers and adapting Lean operating system principles th
Slide 36: Jonathan Arnold
Jonathan Arnold Vice President, Investor Relations Jonathan Arnold started at PG&E in November 2022 and leads the company's engagements with the external investor community. Arnold has been recognized as an award-winning analyst and is viewed as a thought leader within the investment community on Ca
Slide 37: Carolyn Burke
Carolyn Burke Executive Vice President and Chief Financial Officer Carolyn Burke joined PG&E in 2023 and has extensive leadership and turnaround experience in Fortune 500 energy and financial services companies. She was previously Executive Vice President and Chief Financial Officer at Chevron Phill
Slide 38: Jason Glickman
Jason Glickman Executive Vice President of Engineering, Planning and Strategy Jason Glickman started his role at PG&E in May 2021 and is responsible for PG&E's near-term engineering priorities and long-term planning, including oversight of the utility's gas system and electric infrastructure. Jason
Slide 39: Carla J. Peterman
Carla J. Peterman Executive Vice President, Corporate Affairs and Chief Sustainability Officer Carla J. Peterman has spent her career focused on California's energy policy and regulatory landscape. At PG&E, she oversees the company's regulatory, legislative, sustainability, and charitable strategies
Slide 40: Mark Quinlan
Mark Quinlan Senior Vice President, Wildfire, Emergency and Operations Mark Quinlan leads PG&E’s Wildfire Program, the Emergency Preparedness & Response organization and is responsible for the safe and event-free operation of the electric transmission and distribution systems. He is the lead for the
Slide 41: John Simon
John Simon Executive Vice President, General Counsel and Chief Ethics and Compliance Officer John Simon is the Executive Vice President, General Counsel, and Chief Ethics & Compliance Officer. With a tenure spanning back to 2007, John has navigated various senior roles within the company, including
Slide 42: Appendix: Supplemental Materials
Appendix 3 Supplemental Materials 42
Slide 43: Load Growth From Electrification Is Net Positive For Customers
Load Growth From Electrification Is Net Positive For Customers Energy Annual Average Household Carbon Consumed1 Energy Cost2 (Inflation Adjusted) Emissions3 (Tons) (29%) (22%) (67%) 1.4B MMBtu $6.5K 103 MMT CO2 $5.1K 1.0B MMBtu 33 MMT CO2 2023 2040 2023 2040 2023 2040 Electricity Natural Gas Hydroge
Slide 44: Physical Risk Mitigation Progress, Then And Now
Physical Risk Mitigation Progress, Then And Now 2017 2023 SITUATIONAL AWARENESS ASSET IMPROVEMENTS EPSS High-Definition Cameras with AI Capability 602 CAMERAS INSTALLED Undergrounding 664 MILES COMPLETED PSPS Weather Stations 1,424 STATIONS INSTALLED System Hardening 1,671 LINE MILES HARDENED Hazard
Slide 45: Appendix: PG&E Corporation's 2024 Earnings Guidance
Appendix 4 PG&E Corporation’s 2024 Earnings Guidance 45
Slide 46: PG&E Corporation's 2024 Earnings Guidance
PG&E Corporation's 2024 Earnings Guidance 2024 EPS guidance Low High Estimated EPS on a GAAP basis ~ $ 1.15 ~ $ 1.20 Estimated non-core items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.10 ~ 0.10 Bankruptcy and legal costs (3) ~ 0.03 ~ 0.01 SB 901 securitizaThotion (4) ~ 0.01 ~ 0.01 Inve
Slide 47: PG&E Corporation's 2024 Earnings Guidance
PG&E Corporation's 2024 Earnings Guidance Exhibit (3) “Bankruptcy E:costs” and legal PG&E Corporation's consists 2020 of legal and other and 2021 costs associated withEarnings Guidance PG&E Corporation’s and the Utility’s Chapter 11 filing. 2024 Low guidance High guidance (in millions, pre-tax) rang
Slide 48: PG&E Corporation's 2024 Earnings Guidance
PG&E Corporation's 2024 Earnings Guidance (5) “Investigation remedies” includes costs related to the Paradise restoration and rebuild, the Wildfires OII decision different, the settlement agreement resolving the Safety and Enforcement Division’s investigation into the 2020 Zogg fire, and the locate
Slide 49: PG&E Corporation's 2024 Earnings Guidance
PG&E Corporation's 2024 Earnings Guidance (7) “Wildfire-related costs, net of insurance” includes legal and other costs associated with the 2019 Kincade fire, 2020 Zogg fire, and 2021 Dixie fire, net of insurance. 2024 Low guidance High guidance (in millions, pre-tax) range range 2019 Kincade fire-r