Slide 1: 2022 Fourth Quarter and Full Year Earnings
2022 FOURTH QUARTER AND FULL YEAR EARNINGS February 23, 2023
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 2023 and 2024 non-GAAP core earnings), equit
Slide 3: Delivered On 2022, Reaffirming 2023
® Delivered On 2022, Reaffirming 2023… NON-GAAP CORE EPS1 Results • Fourth Quarter – 26¢ • Full Year – $1.10 • Capital Investment – $9.6B DELIVERED EPS Growth • At Least 10% for 2022-2024 • At Least 9% in 2025 and 2026 ON TRACK Guidance 2022 2023 2024 Delivered On Track On Track $1.10 $1.19 - $1.23
Slide 4: 2022: Mitigating Risk
® 2022: Mitigating Risk… Mitigating Physical Risk Mitigating Financial Risk System Resilience Customers ▪ Wildfire Mitigation: ▪ Simple, Affordable Model Layers of Protection ▪ Improved EPSS Outage Response ▪ Improved Response to Extreme Heat Conditions ▪ 3% Non-Fuel O&M Cost Reduction ▪ Winter Stor
Slide 5: Historic Storm Event
® Historic Storm Event… December 30, 2022 – January 17, 2023 ~1,900 Poles repaired ~30,000 Total outages 5,300+ Trees removed 95% 4 out of 5 “ of customers customers were Tremendous job by PG&E crew. Fixed our snapped were restored restored within “ power line in Twin Peaks, SF within a few hours wi
Slide 6: Adding Layers Of Protection
® Adding Layers Of Protection… 100% Wildfire Mitigation Programs PG&E actions (System Hardening/Undergrounding, Vegetation Management, Enhanced Inspections and Repairs) have mitigated 80% 90% + 60% Enhanced Powerline Safety Settings (EPSS) of wildfire risk1 Public Safety Power 40% New measures are m
Slide 7: Lower Ignitions Trend
® Lower Ignitions Trend… WILDFIRE RISK WILDFIRE RISK REDUCTION 31% more days with elevated wildfire risk in 2022 relative to 2018-20203 99% reduction in acres impacted in 2022 relative to 2018-20203 Fire Potential Index1 2020-2022 Cumulative CPUC-Reportable2 Ignitions in HFTD + HFRA +Wind Event R5+
Slide 8: Simple, Affordable Model
® Simple, Affordable Model… OPPORTUNITIES1 Customer Capital Investment ~9% Offsets -O&M Cost Reduction (Non-Fuel)2 2% -Electric Load Growth3 1% - 3% -Other (Including Efficient Financing)4 2% Subtotal 5% - 7% Customer Impacts: At or Below Assumed Inflation 2% - 4% Presentation endnotes are included
Slide 9: Simple, Affordable Model In Action
® Simple, Affordable Model In Action1… 2021 2022 Redeployment 6¢ $1.10 Redeployment 3¢ $1.002 The path to $1.10 non-GAAP Core EPS3 (8)¢ (8)¢ Presentation endnotes are included in Appendix 8. …Managing The Work For Customers 9
Slide 10: Working With Policymakers
® Working With Policymakers… First AB 1054 Securitization Approved, Short-Term and Long-Term 2021 Debt Financing Authorized Diablo Canyon Legislation Passed (SB 846) Undergrounding Legislation Passed (SB 884) Removed from Enhanced Oversight Enforcement 2022 2022 and 2023 Cost of Capital Decisions Re
Slide 11: 2022 Report Card
® 2022 Report Card… Metric 2022 Results 2022 Goal 2022-2026 Goal Annual CPUC Reportable WILDFIRE Ignitions greater than or equal 1 0 0 to 100 acres1 Undergrounding Circuit Miles2 180 175 2,275 CUSTOMER Gas Distribution Main Replacement Miles3 203 220 1,150 Annual O&M Cost Reduction (Non-Fuel)4 3% 2%
Slide 12: 2023 Report Card
® 2023 Report Card… Metric 2023 Goal Long-Term Goal Catastrophic Wildfires1 0 0 Undergrounding Circuit Miles 350 10,000 Annual O&M Cost Reduction (Non-Fuel)2 2% 2% Rate Base Growth3 ~16% ~9.5% CAGR 2022-2027 Non-GAAP Core 2023-2024 at least 10% At least 10% EPS Growth4 2025 & 2026 at least 9% FFO/De
Slide 13: 2022 Non-GAAP Core EPS $1.10
® 2022 Non-GAAP Core EPS1 $1.10... 2022 RESULTS UP 10% 8¢ (5¢) $1.10 7¢ $1.00 2021 Full Customer capital Cost reductions Redeployment 2022 Full Year investments and other Year (diluted)2 (rate base growth) (diluted) Presentation endnotes are included in Appendix 8. …No More, No Less 13
Slide 14: Customer Investment Supports Guidance
® Customer Investment Supports Guidance... Customer Investment ~$52B $5B+ (CapEx) UPSIDE ~$39B OPPORTUNITIES • Incremental transmission capacity • Electric distribution capacity • Other growth Last Five Years Five Year Plan 2018 – 2022 2023 – 2027 Risk Reduction New Business and Capacity System Main
Slide 15: Simple, Affordable Model Working
® Simple, Affordable Model Working… EXAMPLES OF MODEL1 O&M COST REDUCTION (NON-FUEL) OPPORTUNITIES 2022 2023 Long-Term Actual Plan Plan Customer Capital ~9% Good Business Decisions (millions) (millions) (millions) Investment -Attrition $ 25) $ 25) $ 25) Offsets -Efficiencies & Insurance 270) 200) 25
Slide 16: Regulatory And Legislative Support
® Regulatory And Legislative Support… ▪ 2022: Final decision received; ROE unchanged Cost of Capital ▪ 2023: Timely final decision received; phase 2 pending ▪ Self-insurance settlement approved 2023 GRC ▪ Final decision scheduled for Q3 2023 Pacific Generation ▪ Proposed decision no later than end o
Slide 17: 2023 EPS Sensitivities
® 2023 EPS Sensitivities… Sensitivity EPS Mitigation Sales Volume Electric Sales (GWh) +/- 1% 0¢ Decoupled Gas Sales (Bcf) +/- 1% 0¢ Decoupled Commodity Prices Power Prices Regulatory Deferrals; +/- $1 0¢ CAISO NP15 ($/MWh) ERRA, Supply PPAs Natural Gas Price +/- 50¢ 0¢ Monthly True-Up; Hedging PG&E
Slide 18: Value Proposition
® Value Proposition… 2022-2024 2025-2026 Non-GAAP Core EPS1 (CAGR) 10% Non-GAAP Core EPS Growth At least 10% At least 9% Dividend Eligibility reached mid-20232 Annual Non-GAAP Core EPS At least 10% At least 10% Growth & Dividend Yield Rate Base Growth (CAGR)3 ~9.5% O&M Cost Reduction (Non-Fuel)4 2%
Slide 19: 2022: Mitigating Risk
® 2022: Mitigating Risk… 2023 Investor Day May 24-25th 3% Non-Fuel O&M San Francisco Bay Area DELIVERED Cost Reduction $9.6B Customer DELIVERED Capital Investment ~9.5% Rate Base ON TRACK CAGR, 2022-2027 10% Non-GAAP Core ON TRACK EPS1 CAGR, 2022-2026 Presentation endnotes are included in Appendix 8
Slide 20: Q&A
Q&A
Slide 21: Appendix
[t PG&E Corporation Appendix
Slide 22: Table of Contents
® Table of Contents Appendix Title Slide (Link) Appendix 1 2023 Factors Impacting Earnings Slide 23 Appendix 2 CapEx and Rate Base Slide 24 Appendix 3 Expected Recovery of Wildfire-Related Costs Slide 25 Appendix 4 SB 846 Diablo Canyon Legislation Slide 26 Appendix 5 Wildfire Mitigation Plan Progres
Slide 23: Appendix 1: 2023 Factors Impacting Earnings
® Appendix 1: 2023 Factors Impacting Earnings Key Ranges Weighted Average Rate Base2 Non-GAAP Core EPS1 Equity Ratio:3 52% Return on Equity:3 10.00% General Rate Case ~$44.5 - $48.5B $1.19 - $1.23 Transmission Owner ~$11.5B New Equity in 2023 and 2024 Total Rate Base ~$56 - $60B $0 Key Factors Affec
Slide 24: Appendix 2: CapEx And Rate Base
® Appendix 2: CapEx And Rate Base Weighted average rate base ($B) Potential Growth Opportunities projected ~9.5% CAGR • Undergrounding on equity rate base 2022-2027 $67-$89 • Additional wildfire mitigation (including remote grid $65-$82 $60-$67 $62-$74 integration) ~$56-$60 $49.8 • Transportation el
Slide 25: Appendix 3: Expected Recovery Of Wildfire-Related Costs
® Appendix 3: Expected Recovery Of Wildfire- Related Costs Approved Cost Recovery (Final Decisions) Balance at Recovery Expected Rate Recovery by Year Application 12/31/22 Through 2023 2024 2025+ 2020 GRC1 724 Dec. 2023 724 - - 2018 CEMA 129 Dec. 2023 129 - - 2020 WMCE 617 24 months 257 309 51 Total
Slide 26: Appendix 4: SB 846 Diablo Canyon Legislation
® Appendix 4: SB 846 Diablo Canyon Legislation Estimated Cost of Diablo Canyon Extension Compared to Alternative Non-GHG Emitting Technologies People $140 - 165 per MWh Planet $60 per MWh Prosperity Alternative New Renewable Diablo Canyon Baseload Generation Cost Recovery 2022-20241 2025-20302 Pre-E
Slide 27: Appendix 5: Wildfire Mitigation Plan Progress
® Appendix 5: Wildfire Mitigation Plan Progress1 Sectionalizing Devices 1,351 Weather Stations 1,209 1,424 1,313 1,005 899 627 1,351 1,424 Devices 241 Stations Installed Installed 2019 2020 2021 2022 2019 2020 2021 2022 Enhanced Vegetation HD Cameras 8,283 Management 602 6,359 502 4,376 349 8,283 2,
Slide 28: Appendix 6: PG&E Utility Securitization Program
® Appendix 6: PG&E Utility Securitization Program The Utility has completed roughly $8.4B of the $10.7B securitization issuances expected over the next several years Complete Rate Neutral Securitization AB 1054 Securitization A.20-04-023 A.22-03-010 Statutory • SB 901 signed into law on September 21
Slide 29: Appendix 7: Regulatory Progress
® Appendix 7: Regulatory Progress Status as of Regulatory Case/Filing Docket Expected Milestones1 February 2023 2023 GRC filed 6/30/21 2023 GRC A.21-06-021 Final Decision Q3 2023 Self-Insurance Final Decision received 1/12/23 2022 Application filed 8/23/21 2022 Cost of Capital A.21-08-015 ACCAM Trig
Slide 30: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide titles are hyperlinks Slide 3: Delivered On 2022, Reaffirming 2023 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 9, Exhibit A for a reconciliation of EPS on a GAAP basis to non-GAAP core earnings per share and Appendix 9, Exhib
Slide 31: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide titles are hyperlinks Slide 11: 2022 Report Card 1. Measures the number of fire ignitions that result in fires equal to or greater than 100 acres in the Utility's High Fire Threat Districts and reportable to the CPUC per Decision 14-02-015. A reportable fire
Slide 32: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide 18: Value Proposition Slide titles are hyperlinks 1. Non-GAAP core earnings per share is not calculated in accordance with GAAP. See Appendix 9, Exhibit A for a reconciliation of EPS on a GAAP basis to non-GAAP core earnings per share and Appendix 9, Exhibit
Slide 33: Appendix 9: Supplemental Earnings Materials
® Appendix 9: Supplemental Earnings Materials Exhibit Title Slide (Link) Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Exhibit A Slides 34-38 Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Reconci
Slide 34: Exhibit A: Reconciliation of GAAP 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, 2022 vs. 2021 (in millions, except per share amounts) Thr
Slide 35: Exhibit A: Reconciliation of GAAP 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, 2022 vs. 2021 (in millions, except per share amounts) (2)
Slide 36: Exhibit A: Reconciliation of GAAP 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, 2022 vs. 2021 (in millions, except per share amounts) (4)
Slide 37: Exhibit A: Reconciliation of GAAP 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, 2022 vs. 2021 (in millions, except per share amounts) (6)
Slide 38: Exhibit A: Reconciliation of GAAP 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, 2022 vs. 2021 (in millions, except per share amounts) (8)
Slide 39: Exhibit B: Operating Income and Total Debt to Adjusted FFO
® Exhibit B: Reconciliation of PG&E Corporation's Operating Income and Total Debt in Accordance with GAAP to Adjusted Funds from Operations ("FFO") and Adjusted Total Debt Adjusted FFO Calculation Adjusted Total Debt Calculation 2022 2022 (in millions) (in millions) GAAP Operating income $ 1,837 GAA
Slide 40: Exhibit C: Key Drivers of Non-GAAP Core EPS
® Exhibit C: Key Drivers of PG&E Corporation's Non-GAAP Core Earnings per Common Share ("EPS") Fourth Quarter and Year to Date, 2022 vs. 2021 (in millions, except per share amounts) Fourth Quarter 2022 vs. 2021 Year to Date 2022 vs. 2021 Earnings Earnings per Earnings Earnings per Common Share Commo
Slide 41: Exhibit D: 2023 Earnings Guidance
® Exhibit D: PG&E Corporation's 2023 Earnings Guidance 2023 EPS Guidance Low High Estimated Earnings on a GAAP basis ~ $ 0.98 ~ $ 1.13 Estimated Non-Core Items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.16 ~ 0.16 Investigation remedies (3) ~ 0.03 ~ 0.02 Wildfire-related costs, net of in
Slide 42: Exhibit D: 2023 Earnings Guidance
® Exhibit D: PG&E Corporation's 2023 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) “Investigation remedies” includes costs related to the settlement agreement with the Safety and Enforcement Division’s investigation into the 2020 Zogg fire, the Wildfires OII dec
Slide 43: Exhibit D: 2023 Earnings Guidance
® Exhibit D: PG&E Corporation's 2023 Earnings Guidance (5) “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 Corporation debt, and legal and other costs associated with PG&E
Slide 44: Exhibit D: 2023 Earnings Guidance
® Exhibit D: PG&E Corporation's 2023 Earnings Guidance (7) “Fire Victim Trust tax benefit net of securitization” includes the impact of rate neutral (SB 901) securitization and tax benefits related to the Fire Victim Trust. Impacts of the SB 901 securitization include the establishment of the SB 901
Slide 45: Exhibit E: GAAP Net Income to Non-GAAP Adjusted EBITDA
® Exhibit E: GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Year to Date, 2022 vs. 2021 Year Ended December 31, (in millions) 2022 2021 PG&E Corporation’s Net Income (Loss) on a GAAP basis $ 1,814 $ (88) Income tax provision (benefit) (1,338) 836 Other income, net
Slide 46: Exhibit F: Non-GAAP Financial Measures
® Exhibit F: Non-GAAP Financial Measures Non-GAAP Core Earnings and Non-GAAP Core EPS “Non-GAAP core earnings” and “Non-GAAP core EPS,” also referred to as “non-GAAP core earnings per share,” are non-GAAP financial measures. Non-GAAP core earnings is calculated as income available for common shareho