Slide 1: 2020 Second Quarter Earnings
2020 SECOND QUARTER EARNINGS July 30, 2020
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 2020 non-GAAP core earnings) as well as forecasts and estimates regarding PG&E Corporation’s and Pacific Gas and Electric Company’
Slide 3: Wildfire Mitigation Plan (WMP) Progress
® Wildfire Mitigation Plan (WMP) Progress 2020 Forecast Spend Year-to-Date Spend Expense ~$1.4B ~$0.7B Capital ~$1.2B (1) ~$0.5B 2020 WMP Key Programs and Goals YTD Q2 2020 Progress (2) System 241 circuit miles hardened through System 51% stronger poles and covered conductor, Hardening Hardening (#
Slide 4: Safety and Technology Advancements
® Safety and Technology Advancements Testing Leading Technologies to Improve Wildfire Risk Reduction Enhanced Inspections PSPS Program Asset Management Risk Reduction and Predictive Improved Efficiency and Consistency Smaller, Shorter, Smarter Maintenance Wires-Down Technology Drone Auto Flight Path
Slide 5: Wildfire Mitigation Plan Progress (cont.)
® Wildfire Mitigation Plan Progress (cont.) 2020 Public Safety Power Shutoff (PSPS) Improvements Smaller Shorter Smarter 33% fewer impacted customers (1) 50% faster restoration times 2x+ more precise modeling • Secured over 450 MW of temporary • Procured 30 additional aircraft, • Increased weather m
Slide 6: Financial Update - Key Takeaways: Sustainable Growth
® Financial Update - Key Takeaways Sustainable Growth Strong Core Risk Reduction Earnings Growth Measures in Place • ~10% Earnings Trajectory 2020-2024 • Executing on Wildfire Mitigation Plan • 2020 Guidance: • Full participation in AB 1054 Wildfire ◦ Non-GAAP Core Earnings: ~$2B Fund ◦ Non-GAAP Cor
Slide 7: 2020-2024 Earnings Overview and Assumptions
® 2020-2024 Earnings Overview and Assumptions Key Factors Affecting GAAP and Non-GAAP Core Earnings 2020 2021 2022 2023 2024 Ratebase ($B) ~$44.1 $47-48 $50-51 $53-55 $57-$60 10.25% Authorized CPUC ROE across the Enterprise Drivers of Unrecoverable Interest Expense Decreases due to reduction in Vari
Slide 8: Substantial Capital Investments
® Substantial Capital Investments (1) Subject to Ongoing and 2019-2024 CapEx Forecast ($B) Future Recovery Requests $7.3-$8.7 Spend driven by: $7.6-$8.2 $7.4-$8.1 • Wildfire Mitigation Plan ~$7.5 $7.2-$7.8 Memorandum Account (WMPMA) $7.0 • Catastrophic Event Memorandum Account (CEMA) 2019 Actual 202
Slide 9: Ratebase Growth Forecast
® Ratebase Growth Forecast Weighted Average Ratebase forecast by Rate Case ($B) Potential Growth Opportunities ~8% CAGR • Additional wildfire mitigation on equity earning ratebase 2019- 2024 (1, 2) • Transportation electrification $57-$60 $53-$55 • Additional distributed generation- $50-$51 enabled
Slide 10: 2020 Factors Impacting Earnings
® 2020 Factors Impacting Earnings ~$44.1B 2020 Key 10.25% $44.5B ~$2B 10.25% $1.60-$1.63 Assumptions Equity Earning Ratebase (1) Authorized CPUC ROE Equity Earning Ratebase (1) Authorized Non-GAAP CoreCPUC ROE across the Earnings Enterprise Non-GAAP (2) Core EPS(10) across the Enterprise (2) Key Fac
Slide 11: 2021 Factors Impacting Earnings
® 2021 Factors Impacting Earnings $47~$44.5B - $48B (1) 10.25% ~$2.1-$2.3B $0.95-$1.05 Equity Earning Ratebase Equity Earning Ratebase (1) Authorized CPUC ROE across Non-GAAP Core Earnings Non-GAAP Core EPS the Enterprise (2) Key Factors Affecting Non-GAAP Core Earnings Non-Core Items ($ millions af
Slide 12: 2020-2024 Earnings Growth
® 2020-2024 Earnings Growth 2020-2024 Non-GAAP Core Earnings ($B) (1) Strong Earnings Growth Post-emergence ~10% 2020 - 2024 CAGR ~8% ratebase growth driven by wildfire mitigation capital Aggressive deleveraging reduces interest expense impact ~$2B~$2 No incremental equity needs anticipated followin
Slide 13: Q2 2020 Earnings Results
® Q2 2020 Earnings Results Q2 2020 (in millions, except per share amounts) Earnings EPS Earnings EPS PG&E Corporation’s Loss on a GAAP basis $ (1,972) $ (3.73) $ (1,601) $ (3.03) Non-core items: Bankruptcy and legal costs 2,275 4.30 2,452 4.64 2019 Kincade fire-related costs, net of insurance 148 0.
Slide 14: Q2 2020 Quarter over Quarter Comparison
® Q2 2020 Quarter over Quarter Comparison Non-GAAP Core Earnings per Share $1.25 ($0.05) ($0.04) ($0.04) $0.05 $0.02 $1.00 ($0.01) $0.75 $0.50 $1.10 $1.03 $0.25 $0.00 Q2 2019 Non- Interest accrued Timing of 2020 Wildfire Miscellaneous Growth in rate Timing of taxes Q2 2020 Non- GAAP Core on pre-peti
Slide 15: Appendix
[t PG&E Corporation Appendix
Slide 16: Table of Contents
® Table of Contents Appendix 1 - AB 1054 Wildfire Fund Slide 17 Appendix 2 - Illustrative Wildfire Fund Scenarios Slide 18 Appendix 3 - 2020 Share Count Guidance Slide 19 Appendix 4 - Registration Rights Agreement Slide 20 Appendix 5 - COVID-19 Impacts Slide 21 Appendix 6 - Cap Ex and Ratebase Assum
Slide 17: Appendix 1: AB 1054 Wildfire Fund
® Appendix 1: AB 1054 Wildfire Fund (1) Wildfire Fund Contribution Treatment Total Funding and Participation • Contribution year life (2) amounts expected to be amortized based on an assumed ~15- Wildfire Fund Funding Sources ($B) • Tax treatment pending private letter ruling from the IRS Additional
Slide 18: 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 PG&E Applies for CPUC Finds PG&E CPUC Finds PG&E Acted Determined: Vict
Slide 19: Appendix 3: 2020 Share Count Guidance
® Appendix 3: 2020 Share Count Guidance Shares Outstanding in millions 2,130 - 2,160 2,130 - 2,160 137 - 168 137 - 168 ~1,250 1,992 1,992 648 529 119 529 529 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Weighted Average Basic and Diluted Shares YTD 2020 Common Shares Pre-Emergence¹ Backstop Commitment Premium Sh
Slide 20: Appendix 4: PG&E Fire Victims Trust Registration Rights Agreement
Appendix 4: PG&E Fire Victims Trust (FVT) ® Registration Rights Agreement Key Term Description “Resale” Registration • PG&E filed a registration statement with SEC to permit Fire Victim Trust (FVT) to sell its shares on a registered basis Statement • Registration statement to be declared effective w
Slide 21: Appendix 5: COVID-19 Impacts
® Appendix 5: 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 22: Appendix 6: Cap Ex and Ratebase Assumptions
® Appendix 6: Cap Ex and Ratebase Assumptions 2020 CapEx and Ratebase Assumptions ($ billions) CapEx Ratebase 2020 GRC Settlement $4.4 $30.5 2019 GT&S Decision 0.7 5.0 2019 TO Plan under Formula Rates 1.5 8.6 AB 1054 Spend 0.9 — Total CapEx ~ $7.5 ~ $44.1 See the Forward-Looking Statements for facto
Slide 23: Appendix 7: 2020 CPUC General Rate Case Overview
® APPENDIX 7: 2020 CPUC General Rate Case Overview • On December 20, 2019, PG&E filed a 2020 GRC settlement agreement together with the Public Advocates Office of the CPUC, The Utility Reform Network, Coalition of California Utility Employees, the Office of the Safety Advocate of the CPUC, and four
Slide 24: Appendix 8: FERC Transmission Owner Rate Cases
® APPENDIX 8: FERC Transmission Owner Rate Cases TO18 (2017 Revenues) • On July 29, 2016, PG&E filed TO18 with FERC requesting a ~$1.7B revenue requirement with an ROE of 10.90% (inclusive of 50 basis point adder) • PG&E cannot predict when a final decision will be issued TO19 (2018 Revenues) • On D
Slide 25: Appendix 9: Expected Timelines of Selected Regulatory Cases
® APPENDIX 9: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2020 General Rate Case (Phase I) A.18-11-009 Dec 13, 2018 – Application filed Mar 8, 2019 – Scoping Memo Mar 25, 2019 – PG&E's Revised Testimony on Real Estate served Jun 28, 2019 – PAO testimony Jul 26,
Slide 26: Appendix 9: Expected Timelines of Selected Regulatory Cases
® APPENDIX 9: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Transmission Owner Rate Case (TO20) ER19-13 Oct 1, 2018 – Application filed Nov 30, 2018 – FERC accepted TO20 filing and set interim rates effective May 1, 2019 Dec 14, 2018 – FERC settlement conference
Slide 27: Appendix 10: Supplemental Earnings Materials
® Appendix 10: Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Exhibit A: Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Slides 28-31 Non-GAAP Core Earnings Key Drivers of PG&E Corporation's Non-G
Slide 28: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Second Quarter, 2020 vs. 2019 (in millions, except per share amounts) Three Months Ended Six Mont
Slide 29: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Second Quarter, 2020 vs. 2019 (in millions, except per share amounts) (2) PG&E Corporation and th
Slide 30: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Second Quarter, 2020 vs. 2019 (in millions, except per share amounts) (4) The Utility recorded co
Slide 31: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Second Quarter, 2020 vs. 2019 (in millions, except per share amounts) (7) The Utility incurred $4
Slide 32: Exhibit B: Key Drivers of Non-GAAP Core Earnings per Share
® Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Earnings per Common Share ("EPS") Second Quarter, 2020 vs. 2019 (in millions, except per share amounts) Second Quarter 2020 vs. 2019 Year to Date 2020 vs. 2019 Earnings per Earnings per Earnings Common Share Earnings Common Share (Diluted)
Slide 33: Exhibit C: Operational Performance Metrics
® Exhibit C: Operational Performance Metrics Proposed 2020 Performance Metrics (1) 2020 Target Customer Welfare - prioritizing public and employee safety Electric Operations Reportable Fire Ignitions 101 Electric Asset Failure 2,166 Distribution Circuit Sectionalization 9/1/2020 Gas Operations Large
Slide 34: Definitions of 2020 Operational Performance Metrics from Exhibit C
® Definitions of 2020 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 35: Definitions of 2020 Operational Performance Metrics from Exhibit C
® Definitions of 2020 Operational Performance Metrics from Exhibit C Customer Welfare – prioritizing public and employee safety (continued) The safety of the Utility’s Reliability is represented by: • Gas Customer Emergency Response – Measures the average response time for immediate response orders
Slide 36: Exhibit D: Sales and Sources Summary
® Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary Second Quarter, 2020 vs. 2019 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Sales from Energy Deliveries (in millions kWh) 17,908 18,004 36,171 36,439 Total Electric Customers at June 30 — — 5,494,176 5
Slide 37: Exhibit E: 2020 and 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance 2020 2021 EPS Guidance Low High Low High Estimated Earnings (Loss) on a GAAP basis $ (1.05) $ (0.99) $ 0.17 $ 0.29 (1) Estimated Non-Core Items: Bankruptcy and legal costs (2) ~ 2.12 ~ 2.09 ~ 0.04 ~ 0.02 (3) Investigation remedies and d
Slide 38: Exhibit E: 2020 and 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) “Investigation remedies and delayed cost recovery" includes costs related to the Wildfire OII Decision Different, Paradise restoration and rebuild, and Locate and Mark OI
Slide 39: Exhibit E: 2020 and 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (5) “2019 Kincade fire-related costs, net of insurance" includes estimated third-party claims, Utility clean-up and repair costs, and legal and other costs associated with the 2019 Kincade fire, net of probable insurance recoveries. The
Slide 40: Exhibit F: General Earnings Sensitivities for 2020 and 2021
® Exhibit F: General Earnings Sensitivities for 2020 and 2021 Pacific Gas & Electric Company Estimated 2020 Non- Variable Description of Change 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 +/-$23
Slide 41: 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 core earnings” and “non-GAAP core EPS” in order to provide a meas