Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Q3 2026 Earnings Presentation
40 slides from Pacific Gas & Electric's earnings presentation, Oct 22, 2026
Slide 1: 2026 Third Quarter Earnings
2026 THIRD QUARTER EARNINGS Turning Point For PG&E And California October 22, 2026 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and the oral remarks made in connection with it contain 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
Slide 3: Reaffirming Guidance For Customers AND Investors
Reaffirming Guidance… Non-GAAP Core EPS1 2026 Results Guidance Key Takeaways $1.64 - $1.66 ► On track for 2026 Core EPS guidance 41¢ 2026 +10% ► Reaffirming 2027 Core EPS guidance Third Quarter ► Transformation delivering safer, more $1.78 - $1.82 reliable, more affordable service $1.24 2027 +9% ► A
Slide 4: Real Protections In Place Today, While Pursuing Full Range Of Options
Real Protections In Place Today… Protections In Place Today Strategic Review ✓ $1B Wildfire Self-Insurance Legislative Reform ✓ Wildfire Fund and Continuation Account1 ✓ Presumption of Prudency and Revised Standard2 Regulatory Reform ✓ Maximum Disallowance3 ✓ Precedent to Securitize Claims from 2025
Slide 5: Layers Of Protection Making Our System Safer Every Day
Layers Of Protection... Weather-Normalized Ignition Rate Situational Awareness 3.23 • Continuous Monitoring1: 35 avoided ignitions using 35k+ sensors, ~6M SmartMeters, including 1k+ AMI 2.0 meters and 26k Gridscope devices • 707 cameras and 1,650 weather stations 2.76 2.67 • 24/7/365 HAWC • Advanced
Slide 6: Enabling Affordable Load Growth: Data Center Pipeline
Enabling Affordable Load Growth… Data Center Pipeline1 Estimated Long-Term Customer Savings2: 1 GW = 1% Or More Electric Bill Reduction Pipeline Highlights MWs June 2026 Sept 2026 ► Application received and signed ► Preliminary Engineering Study (PES) Total 12,710 12,870 fee paid ► 27 projects as of
Slide 7: Simple, Affordable Model Driving Differentiated Performance
Simple, Affordable Model… Model1 Standing For Customers Safe, Reliable Service Customer Capital Investment 9% - 10% Transformation powered by our layers of protection Enablers Lower Cost Of Capital O&M cost reduction (non-fuel)2 2% 2% -- 4% 3% Advocating for policy reform to drive access to affordab
Slide 8: Non-GAAP Core EPS Comparison
Non-GAAP Core EPS 1 Comparison... Full First Year Nine 2025Months vs. 2024 Fourth Quarter $1 12¢ 4¢ $1.24 Factors (2¢) (4¢) $1 $1.14 Customer $1 Capital Investment $1 Savings $1 Redeployment $0 Other $0 $- 2025 Customer Customer Capital… Operating & Redeployment Redeployment Timing and 2026months 20
Slide 9: 2026-2027 Capital Plan, 2028-2030 Pending Strategic Review Outcome
2026-2027 Capital Plan… Weighted Average CapEx ($B)1 Rate Base ($B)1 XX% Safety and Compliance Priorities Will Not Change CPUC CPUC ► Critical safety programs FERC 106 FERC 16.3 16.0 ► Wildfire Mitigation Plan and Safety 96 15.4 Certification requirements 89 81 12.4 75 11.4 69 11.4 Some Work Will Be
Slide 10: Credit Rating Profile
Credit Rating Profile1… SCALE SCALE RATING DEBT RATING Moody’s S&P/Fitch Moody’s S&P Fitch Key Principles A2 A Investment Grade ❑ Safely serve our customers A3 A- ❑ Deliver on our affordability goals Baa1 BBB+ ❑ Attract low-cost capital Baa2 BBB ❑ Prioritize investment grade credit ratings Baa3 BBB-
Slide 11: O&M Cost Reduction Performance
O&M Cost Reduction Performance… 2023 2024 2025 Model4 Actual Actual Actual Examples of O&M Cost (millions) (millions) (millions) (millions) Reductions (Non-Fuel)1 Resource Management $90 $60 $85 $45 - $70 Efficiencies and Insurance 350 370 135 65 Capital Conversion --2 45 80 45 - 150 Planning, Execu
Slide 12: Working With Policymakers And Stakeholders
Working With Policymakers And Stakeholders… 4-Year Revenue Certainty 3-Year CoC Cycle w/ ROE Adjustment Mechanism FERC Formula Rate Regulatory and Policy Environment Constructive Legislation: SB 884, SB 846, SB 410, SB 254 Sep 2025 Dec 2025 Apr 2026 Sep 2026 Nov 2026 Mar 1, 2027 Governor Newsom 2026
Slide 13: Differentiated Performance Benefits Customers AND Investors
Differentiated Performance… 2023A 2024A 2025A Customer Investment Rate Base $58B $63B $69B CA Regulatory Ranking (RRA) Average/1 Average/1 Average/17 Affordability Enablers Non-Fuel O&M Reduction1 5½% 4% 2½% Capital to Expense Ratio2 0.8 0.9 1.0 Credit Ratings3 B1 /BB- Ba3 /BB Ba2 /BB Consistent Per
Slide 14: Investing In California's Prosperity
Investing In California’s Prosperity… Building California’s Energy Future $ ↓ Unwavering Commitment to Continued Action on Data Center Load Growth Working Towards Durable Wildfire Mitigation Customer Affordability Benefits Customers & California Wildfire Solution Premium Growth Capital to Expense Ra
Slide 15: Q&A
Decarbonized Energy System Q&A Affordable and Resilient Energy Physical and Financial Safety 15
Slide 16: Appendix 1: Presentation Endnotes
Appendix 1 Presentation Endnotes 16
Slide 17: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide titles are hyperlinks Slide 3: Reaffirming Guidance 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 3, Exhibit A for a reconciliation of EPS results on a GAAP basis to non-GAAP core EPS and Appendix 3, Exhibit E regarding non-GAAP
Slide 18: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide titles are hyperlinks Slide 9: 2026-2027 Capital Plan 1. Weighted-average rate base forecasts reflect authorized and incurred capital expenditures plus a forecast of capital expenditures that the Utility expects to be approved. Excludes construction work in pr
Slide 19: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide 14: Investing In California's Prosperity Slide titles are hyperlinks 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 3, Exhibit A for a reconciliation of EPS results on a GAAP basis to non-GAAP core EPS and Appendix 3, Exhibit E re
Slide 20: Appendix 2: Supplemental Earnings Materials
Appendix 2 Supplemental Earnings Materials 20
Slide 21: 2026 Factors Impacting Earnings
2026 Factors Impacting Earnings Key Ranges Non-GAAP Diluted Shares Core EPS1 20262 $1.64 - $1.66 2,210M - 2,295M Key Factors Affecting Weighted Average Rate Base3 Non-GAAP Core Earnings5 Authorized Equity Rate Return on Equity Ratio4 Base ($ millions after tax) CPUC $62B Unrecoverable net interest6
Slide 22: 2027 Factors Impacting Earnings
2027 Factors Impacting Earnings Key Ranges Non-GAAP Diluted Shares Core EPS1 20272 $1.78 - $1.82 2,210M - 2,300M Key Factors Affecting Weighted Average Rate Base3 Non-GAAP Core Earnings5 Authorized Equity Rate Return on Equity Ratio4 Base ($ millions after tax) CPUC $68B Unrecoverable net interest6
Slide 23: Physical Risk Mitigations Making Our System Safer Every Day
Physical Risk Mitigations Making Our System Safer Every Day Mitigations Delivering Results Significant Reduction in PG&E Ignitions Leading To Fires > 10 Acres 20000 1500 Incidents ≥ 10 Acres in California * 18000 (all sources) 18,804 1300 16000 Structures Destroyed in PG&E 24 Reportable Fires in HFT
Slide 24: Wildfire Fund Continuation Account For Future Wildfires
Wildfire Fund Continuation Account For Future Wildfires > $21.0 B $18.0 B Utility Utility Upfront Funding Contingent Funding $7.5 2019-2020 $3.9 * Over 5 years only if needed PG&E $4.8B PG&E $373M per year Utility Utility Annual Funding $3.0 Annual Funding 2019-2028 $5.1 2029-2045 $300M per year $30
Slide 25: SB 254: Improved California Wildfire Risk Framework
SB 254: Improved Upon California Wildfire Risk Framework Wildfire Fund Continuation Account: First step following January 2025 fires and Key Features building on existing AB 1054 foundation Creates new Wildfire Fund Continuation Flexible Improved Account providing $18B for future wildfires Utility f
Slide 26: Existing Protections Enhanced Pending Broader Policy Update
Existing Protections Enhanced Pending Broader Policy Update Protections Offered Under AB 1054 & SB 254 Physical Risk Reduction Drives Cost Recovery Liquidity Reimbursement Financial Protections Unchanged Bolstered Improved Improved prudency standard1 Available when needed Disallowance cap retained P
Slide 27: California Wildfire Fund Mechanics
California Wildfire Fund Mechanics Claims filed against Covered Utility Customer funded self-insurance Covered Utility seeks payment from the Fund for eligible claims >$1B covers first $1B of claims Filing after “substantially all” Covered Utility files cost recovery application at the CPUC for clai
Slide 28: SB 846 Diablo Canyon Legislation
SB 846 Diablo Canyon Legislation 10/18/22 11/7/23 12/19/23 6/25 4/26 Executed Filed for NRC determined NRC Environmental NRC $1.4B loan NRC license license renewal Impact Statement license agreement renewal application and Safety renewal with DWR sufficient Evaluation Report approval 9/2/22 3/2/23 1
Slide 29: Physical Risk Mitigation Progress Then & Now
Physical Risk Mitigation Progress Then & Now 2017 2026 SITUATIONAL AWARENESS ASSET IMPROVEMENTS EPSS High-Definition Cameras with AI Capability 707 CAMERAS INSTALLED Undergrounding 1,400 MILES COMPLETED * PSPS Weather Stations 1,650 STATIONS INSTALLED System Hardening 2,794 MILES COMPLETED ** Underg
Slide 30: Regulatory Progress
Regulatory Progress Regulatory Case/Filing Docket Status as of October 2026 Expected Milestones 2027 GRC A.25-05-009 ▪ 2027 GRC Application filed 5/15/25 Proposed Decision March 2027 ▪ Interim rate recovery request 5/7/26 Final Decision May 2027 Interim rate recovery Final Decision Q4 2026 Kincade a
Slide 31: Appendix 3: Supplemental Non-GAAP Information
Appendix 3 Supplemental Non-GAAP Information 31
Slide 32: Supplemental Earnings Materials
Supplemental Earnings Materials Exhibit Title Slide (Link) Reconciliation of PG&E Corporation's Consolidated Earnings Exhibit A Available for Common Shareholders in Accordance with GAAP to Slides 33-36 Non-GAAP Core Earnings Exhibit B Key Drivers of PG&E Corporation's Non-GAAP Core Earnings Slide 37
Slide 33: Exhibit A: Reconciliation of Consolidated Earnings to Non-GAAP Core Earnings
Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Third Quarter, 2026 vs. 2025 (in millions, except per share amounts) Three Months Ended Nine Months E
Slide 34: Exhibit A: Reconciliation of Consolidated Earnings to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 35: Exhibit A: Reconciliation of Consolidated Earnings to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 36: Exhibit A: Reconciliation of Consolidated Earnings to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 37: Exhibit B: Key Drivers of Non-GAAP Core EPS
Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Earnings per Common Share ("EPS") Earnings per Common Share ("EPS") Third Quarter, 2026 vs. 2025 (in millions, except per share amounts) Third Quarter 2026 vs. 2025 Year to Date 2026
Slide 38: Exhibit C: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
Exhibit C: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation Third Quarter, 2026 vs. 2025 (in millions) Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2026 2025 2026 2025 PG&E Corporation’s Net Income on a GAAP basis $ 776 $ 850 2,422 $ 2,033 Income tax provi
Slide 39: Exhibit D: Operating Income and Total Debt to Adjusted FFO and Debt
Exhibit D: 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 2025 2024 2025 2024 (in millions) (in millions) (in millions) (in million
Slide 40: Exhibit E: Non-GAAP Financial Measures
Exhibit E: 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 sharehold