Slide 1: 2018 Fourth Quarter Earnings
2018 FOURTH QUARTER EARNINGS February 28, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements regarding management’s expectations and objectives for future periods as well as forecasts and estimates regarding potential liability in connection with the 2018 Camp fire and 2017 Northern California wildfires, the proposed Community
Slide 3: Chapter 11 Filing
Chapter 11 Filing • On January 29, 2019, PG&E Corporation and the Utility filed voluntary petitions under Chapter 11 in the United States Bankruptcy Court for the Northern District of California, and expect that the Chapter 11 process will: • Enable continued safe delivery of natural gas and electri
Slide 4: Wildfire Mitigation Plan
Wildfire Mitigation Plan ~$7.8B Program Spend through 2023 (1) (2) Key Program Elements ($B) 2.5 Public Safety • Expanded Public Safety Power Shut-off program in 2019 Power Shut-off to include up to 500 kV transmission lines 2.0 Enhanced • Enhanced asset inspections in HFTD(3) by June 1, 2019: - ~68
Slide 5: Q4 2018 Earnings Results
Q4 2018 Earnings Results Q4 2018 Earnings Earnings ($ in millions, except per share amounts) EPS EPS (Loss) (Loss) Loss on a GAAP basis $ (6,873) $ (13.24) $ (6,851) $ (13.25) Items Impacting Comparability 2018 Camp fire-related costs, net of insurance 6,823 13.15 6,823 13.20 2017 Northern Californi
Slide 6: Q4 2018: Quarter over Quarter Comparison
Q4 2018: Quarter over Quarter Comparison Non-GAAP Earnings per Share from Operations $1.00 $0.02 ($0.05) $0.06 $0.90 ($0.02) $0.06 ($0.01) ($0.01) ($0.02) $0.80 $0.14 $0.70 $0.60 $0.50 $0.40 $0.80 $0.30 $0.63 $0.20 $0.10 $0.00 Q4 2017 Short-term Growth in Timing of 2017 Insurance Wildfire Risk Timin
Slide 7: 2019 Assumptions
2019 Assumptions Capital Expenditures Key Factors Affecting ($ millions) Earnings from Operations 2019 - Higher financing costs General Rate Case 4,500 - Incremental wildfire risk mitigation costs Gas Transmission and Storage 800 - Insurance premiums, net of regulatory cost recovery Transmission Own
Slide 8: 2019 Items Impacting Comparability Guidance
2019 Items Impacting Comparability Guidance ($ millions, pre-tax) 2018 Camp fire-related costs (1) 190 - 260 2017 Northern California wildfire-related costs (2) 40 - 90 Electric asset inspection costs (3) 300 - 450 Chapter 11-related costs (4) ~400 - ~460 Estimated 2019 Items Impacting Comparability
Slide 9: Cap Ex Forecast
Cap Ex Forecast Capital Expenditures 2018-2023 $7.1B ~$0.1B ~$0.2B ~$7B $6.6B ~$1.0B ~$5.7B CWSP (2) $~700M Other GRC $~300M 2018 Recorded 2019 Currently Incremental Incremental Incremental Authorized Authorized GRC Request GT&S Request TO Request Plus Requested CapEx CapEx Range of ~$5.7B to ~$7B a
Slide 10: Expected Ratebase Growth
Expected Ratebase Growth 2018-2023 Weighted Average Ratebase ($ in B) (1) ~7 – 8.5% CAGR ~$52.0-56.0B ~$49.5-52.5B ~$47.0-49.0B ~$44.5-45.5B ~$40.5B $36.8B (3) 2018 2019 2020 2021 2022 2023 General Rate Case (2) Gas Transmission & Storage Electric Transmission Owner Range Changes from prior quarter
Slide 11: Cap Ex and Ratebase Assumptions
Cap Ex and Ratebase Assumptions Base Case Assumptions 2020 2021 2022 2023 General Rate Case L 2017 GRC Decision H 2020 GRC Filing (including CWSP) (1) Gas Transmission & Storage L 2015 GT&S Phase 2 Decision H 2019 GT&S Filing Transmission Owner L TO17 Settlement H TO20 Filing Light-Duty EV Infrastru
Slide 12: Appendix
[t PG&E Corporation Appendix
Slide 13: Table of Contents
Table of Contents Appendix 1 – Supplemental Earnings Materials Slides 14-27 Appendix 2 – Overview of Regulatory Cases Slides 28-30 13
Slide 14: Appendix 1 – Supplemental Earnings Materials
Appendix 1 – Supplemental Earnings Materials Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Slides 15-17 Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations Exhibit B: Key Drivers of PG&E Cor
Slide 15: Exhibit A: Reconciliation of GAAP to Non-GAAP 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 Non-GAAP Earnings from Operations Fourth Quarter and Year to Date, 2018 vs. 2017 Three Months Ended Year Ended (in millions, e
Slide 16: Exhibit A: Reconciliation (continued)
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations (3) The Utility incurred costs, net of insurance, of $629 million (before the tax impact of
Slide 17: Exhibit A: Reconciliation (continued)
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations (9) The Utility incurred costs of $71 million (before the tax impact of $24 million) during
Slide 18: Exhibit B: Key Drivers of Non-GAAP EPS from Operations
Exhibit B: Key Drivers of PG&E Corporation’s Non-GAAP Earnings per Common Share (“EPS”) from Operations Fourth Quarter and Year to Date, 2018 vs. 2017 Three Months Ended Year Ended (in millions, except per share amounts) December 31, December 31, Earnings per Earnings per Common Common Share Share E
Slide 19: Exhibit C: Operational Performance Metrics
Exhibit C: Operational Performance Metrics 2018 Performance Results 2018 Actual 2018 Target Meets Target (1) Safety Nuclear Operations Diablo Canyon Power Plant (DCPP) Reliability and Safety DCPP Unit 1 Score 100 96.4 P DCPP Unit 2 Score 90.0 87.6 P Electric Operations Public Safety Index 1.9 1.0 P
Slide 20: Definitions of 2018 Operational Performance Metrics
Definitions of 2018 Operational Performance Metrics from Exhibit C Safety Public and employee safety are measured in four areas: Nuclear Operations Safety, Electric Operations Safety, Gas Operations Safety, and Employee Safety. The safety of the Utility’s nuclear power operations, DCPP Unit 1 and Un
Slide 21: Exhibit D: Sales and Sources Summary
Exhibit D: Pacific Gas and Electric Company Sales and Sources Summary Fourth Quarter and Year to Date, 2018 vs. 2017 Three Months Ended Year Ended December 31, December 31, 2018 2017 2018 2017 Sales from Energy Deliveries (in millions kWh) 19,198 19,311 79,777 82,226 Total Electric Customers at Dece
Slide 22: Exhibit E: 2019 Items Impacting Comparability Guidance
Exhibit E: PG&E Corporation’s 2019 Items Impacting Comparability (“IIC”) Guidance 2019 IIC Guidance (in millions, after-tax) Low High Estimated Items Impacting Comparability: (1) 2018 Camp fire-related costs(2) 187 137 2017 Northern California wildfire-related costs (3) 65 29 Electric asset inspecti
Slide 23: Exhibit F: General Earnings Sensitivities for 2019
Exhibit F: General Earnings Sensitivities for 2019 PG&E Corporation and Pacific Gas and Electric Company Variable Description of Change Estimated 2019 Earnings Impact Rate base +/- $100 million change in allowed rate base +/- $5 million Return on equity (ROE) +/- 0.1% change in allowed ROE +/- $21mi
Slide 24: Exhibit 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 "non-GAAP earnings from operations" and “non- GAAP EPS from operations” in or
Slide 25: Exhibit H: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
Exhibit H: GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation and Pacific Gas and Electric Company (in millions) 2014 2015 2016 2017 2018 PG&E Corporation’s Net Income (Loss) on a GAAP basis $ 1,450 $ 888 $ 1,407 $ 1,660 $ (6,837) Income tax provision (benefit) 345 (2
Slide 26: Exhibit I: Expected Timelines of Selected Regulatory Cases
Exhibit I: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2019 Gas Transmission and Storage Rate Case A.17-11-009 Nov 17, 2017 – Application filed Jan 4, 2018 - Prehearing Conference (PHC) Mar 30, 2018 - Update testimony filed to r
Slide 27: Exhibit I: Expected Timelines of Selected Regulatory Cases
Exhibit I: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Safety Culture and Governance Order Instituting I.15-08-019 Dec 21, 2018 -- President Picker issued ruling on next phase Investigation Phase 3 Jan 16, 2019 – PG&E submitted
Slide 28: 2020 CPUC General Rate Case
A P P E N D I X 2 – O V E RV I E W O F K E Y R E G U L AT O RY C A S E S 2020 CPUC General Rate Case On December 13, 2018, PG&E filed its application for its 2020 General Rate Case requesting a ~$1.1B increase in revenue requirement over 2019 authorized. ($ billions) 2020 2021 2022 Revenue Require
Slide 29: 2019 CPUC Gas Transmission and Storage Rate Case
A P P E N D I X 2 – O V E RV I E W O F K E Y R E G U L AT O RY C A S E S 2019 CPUC Gas Transmission and Storage Rate Case On November 17, 2017, PG&E filed its 2019 Gas Transmission and Storage rate case. PG&E subsequently revised its request to reflect impacts from the Tax Cuts and Jobs Act as wel
Slide 30: FERC Transmission Owner Rate Case
A P P E N D I X 2 – O V E RV I E W O F K E Y R E G U L AT O RY C A S E S FERC Transmission Owner Rate Case TO18 (2017 Revenues) • July 29, 2016 – Filed TO18 with FERC requesting $1.7 billion revenue requirement, an ROE (inclusive of 50 basis point adder) of 10.90% • A final decision is expected in t