Slide 1: 2023 Fourth Quarter and Full Year Earnings
2023 FOURTH QUARTER AND FULL YEAR EARNINGS Performance Is Power February 22, 2024
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: Delivered On 2023, Lifting 2024 And Beyond
Delivered On 2023, Lifting 2024 And Beyond… NON-GAAP CORE EPS1 RESULTS EPS GROWTH 2024 GUIDANCE At least New $1.33 - $1.37 47¢ 10% Original $1.31 - $1.35 Fourth Quarter Raised No New Equity 2023 and 2024 RATE BASE $1.23 At least ~9.5% Full Year 9% 63 CAGR 68 73 82 90 2025 - 2028 $B 57 High End Exten
Slide 4: Simple, Affordable Model In Action
Simple, Affordable Model In Action1… Redeployment and Balance Sheet Strengthening Cost Performance EPS Growth3 Annual Guidance and GRC At Least Headwinds and +12% New At Least 9% Forecast 9% Tailwinds At Least Redeployment 9% At Least $1.23 At Least 9% 10% Redeployment $1.21 Prior Forecast $1.10 +10
Slide 5: Simple, Affordable Model
Simple, Affordable Model… PLAN1 Customer Capital Investment ~9% Enablers -O&M cost reduction (non-fuel)2 2% -Electric load growth3 1% - 3% -Other (including efficient financing)4 2% Subtotal 5% - 7% Customer Bills: At or Below Assumed Inflation 2% - 4% Endnotes are included in the Appendix. …Key To
Slide 6: Affordable Business Model
Affordable Business Model… Combined Electric & Gas Monthly Bill: Residential Bundled Non-CARE 300 2% - 4% Average Annual Increase 290 Bill Monthly 2023 - 2026 Forecast ($)1 Deferred Collections Roll Off 280 One-Time ▪ 2022 WMCE IRR Deferred Recovery ▪ 2023 GRC Collections 270 GRC 260 250 240 230 202
Slide 7: Physical Risk Mitigations Are Reducing Ignitions
Physical Risk Mitigations… 94% Wildfire Risk Reduction1 0 Catastrophic Wildfires 2 PSPS Events Cumulative CPUC-Reportable2 Ignitions HFTD + HFRA Weather-Normalized Ignition Rates in HFTD + HFRA R3+ per 100k Circuit Mile Days 2023 2022 2021 2017 IGNITION RATE DOWN 3.23 201 2.67 2.76 71% vs. 2017 IGNI
Slide 8: Differentiated Growth And Regulatory Visibility
Differentiated Growth And Regulatory Visibility… PREMIUM RATE BASE & CORE EPS GROWTH1 NON-FUEL O&M REDUCTIONS6 Percent 2017-2021 Average $B ~9.5% 12 PG&E CAGR 9% 2022A 3% 90 9% 82 6 68 73 9% 63 PG&E 57 2023A $1.23 9% 22 23 5½% 0 $1.10 10% $1.00 2 -3% -6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 -5½% 2024F 2%
Slide 9: Performance Playbook: Undergrounding
Performance Playbook: Undergrounding Waste Elimination Average Construction 2023 Average Improved Reliability in 2023 Cycle Time (Months) Unit Cost Per Mile Avoided PSPS & Storm Outages $68M 5½ 3½ <$3M 15,000 Savings February 2023 Today $3.3M TARGET Customers Significant work ahead ❑ Design, Easemen
Slide 10: 2023 Report Card
2023 Report Card… Metric 2023 Result 2023 Goal Long-Term Goal Catastrophic Wildfires1 0 0 0 Undergrounding Circuit Miles 364 350 10,000 Annual O&M Cost Reduction (Non-Fuel)2 5½% 2% 2% Rate Base Growth3 ~9.5% CAGR 2023 - 2028 ON TRACK 2023 & 2024 at least 10% Non-GAAP Core EPS Growth4 12% At least 10
Slide 11: Non-GAAP Core EPS Comparison
Non-GAAP Core EPS1 Comparison… Full Year 2023 vs. 2022 15¢ 3¢ (5¢) $1.23 $1.10 2022 Customer Operating & Redeployment 2023 EOY Capital Maintenance / EOY Investment Other (Final GRC Decision) Endnotes are included in the Appendix. …Delivered 2023 At High–End Of Guidance Range 11
Slide 12: Sector Leading Rate Base Growth
Sector Leading Rate Base Growth… Weighted Average Rate Base ($B)1 CapEx ($B)3 Plus at least $5B $5B additional investment ~9.5% CAGR $62B 2024-2028 opportunities4 2023-2028 +20% vs. $52B 2023-2027 Transportation Electrification 1 Capacity Investments 90 14.0 82 13.6 12.7 73 11.5 68 10.4 63 9.8 57 Tr
Slide 13: Capital Investment For Customers
Capital Investment For Customers… Amount (billions) 2024 Cash Flow Drivers $ 14 • • 2023 GRC Catch-Up 2024 GRC Revenue Operating Cash Flow 12 • Interim Rate Relief $11 10 $8 8 6 $5 4 Capital Investment1 2 0 -2 -4 -$2 -$3 -6 -$4 Cash Flow Pre-Dividend 2023A 2024F 2025F 2026F 2027F 2028F Federal NOLs
Slide 14: Simple, Affordable Model
Simple, Affordable Model… MODEL1 Examples of O&M Cost Reductions (Non-Fuel) PLAN 2022 2023 2024 Long-Term Actual Actual Plan Plan Customer Capital Good Business Decisions (millions) (millions) (millions) (millions) ~9% Investment and Savings Through Lean - Resource Management $ 25 $ 90 $ 65 $ 65 Ena
Slide 15: Working With Policymakers And Stakeholders
Working With Policymakers And Stakeholders… May 2023 Jun 2023 Oct 2023 Nov 2023 Dec 2023 Dec 2023 Jan 2024 Jan 2024 Jun 2024 Safety Culture 2022 WMCE SB 410 2023 GRC Cost of 2023 Dixie Fire 2023 GRC Phase 2 Proceeding Interim Rate Signed Final Capital WMP Settlement WGSC Proposed Resolved Relief Dec
Slide 16: Differentiated Performance
Differentiated Performance… 2022A 2023A 2024F Future Customer Investment Rate Base Growth 5.5% 14.5% 10.5% CA Regulatory Ranking (RRA) Average/2 Average/1 Above Average Affordable Model Non-Fuel O&M Reduction1 3% 5½% 2% 2% Load Growth2 1% -- 4% 2% 3% Bills3 2% - 4% Credit Ratings BB-/Ba2 BB- /Ba2 In
Slide 17: Performance Is Power
Performance Is Power… 2023 Future 2023 Non-GAAP Core EPS1: $1.23 EPS Growth High end of range 2024 Guidance At least 2 Non-fuel O&M : Down 5½% $1.33 - $1.37 9% Rebased Higher Extended to 2028 Exceeded target CapEx and Rate Base Wildfire Ignition Rate: 0.93 5-Year CapEx Rate Base Growth New low $62B
Slide 18: Q&A
Patti Poppe Chief Executive Officer Q&A Carolyn Burke EVP, Chief Financial Officer Investor Meeting June 12, 2024 New York
Slide 19: Appendix
Appendix
Slide 20: Table of Contents
Table of Contents Appendix # Title Slide (Link) Appendix 1 2024 Factors Impacting Earnings Slide 21 Appendix 2 GRC Final Decision Slide 22 Appendix 3 Expected Recovery of Wildfire-Related Costs Slide 23 Appendix 4 AB 1054 Protections Slide 24 Appendix 5 SB 846 Diablo Canyon Legislation Slide 25 Appe
Slide 21: Appendix 1: 2024 Factors Impacting Earnings
Appendix 1: 2024 Factors Impacting Earnings Key Ranges Weighted Average Rate Base2 Non-GAAP Core EPS1 Equity Ratio:3 52% Return on Equity:3 10.7%4 $1.33 - $1.37 CPUC $52B New Equity in 2024 FERC $11B $0 Total Rate Base $63B Non-Core Items5 Key Factors Affecting Non-GAAP Core Earnings7 ($ millions af
Slide 22: Appendix 2: GRC Final Decision
Appendix 2: GRC Final Decision Revenue Requirement $B Funds 163 miles per year for gas distribution pipe replacement 2023 2024 2025 2026 Fully funds requested annual $13.52 $14.24 $14.60 $14.80 energization work Revenue Catch-Up Escalation Undergrounding Wildfire Mitigation • Cash collection of 2023
Slide 23: Appendix 3: Expected Recovery Of Wildfire-Related Costs
Appendix 3: Expected Recovery Of Wildfire-Related Costs Approved Cost Recovery (Final Decisions) Expected Rate Recovery by Year Recovery Balance at Q4 Q4 Rate As of Application Through 9/30/2023 Expense Recovery 12/31/2023 2024 2025 2026+ 2023 GRC1 12/31/2026 199 786 (1,040) (55) (55) - - 2020 WMCE
Slide 24: Appendix 4: AB 1054 Protections
Appendix 4: AB 1054 Protections Physical Risk Protections Offered Under AB 1054 Reduction Drives Liquidity Cost Recovery Reimbursement Financial Protections Available when needed Improved prudency standard1 Maximum liability capped Physical Risk 1 Mitigations • Liquidity available as • Utility condu
Slide 25: Appendix 5: SB 846 Diablo Canyon Legislation
Appendix 5: SB 846 Diablo Canyon Legislation 10/18/22 3/2/23 12/19/23 TBD Executed NRC approved exemption NRC determined NRC Environmental $1.4B loan request allowing continued license renewal Impact Statement & agreement with operations at DCPP application sufficient Safety Evaluation DWR Report 9/
Slide 26: Appendix 6: Pacific Generation Minority Sale
Appendix 6: Pacific Generation Minority Sale 2023 Rate Base1 Efficient Financing ~$3.4B Customers ▪ Sale proceeds reinvested into PG&E system Generation Capacity ▪ Retain owned-generation benefits with no rate impact Natural Solar AND Gas 152 MW 1,400 MW ▪ Additional capital source for generation sa
Slide 27: Appendix 7: Wildfire Mitigation Plan Progress
Appendix 7: Wildfire Mitigation Plan Progress 2019-2023 2024 914 ACTUALS1 TARGET 664 Undergrounding Our Lines 300 Undergrounding powerlines to reduce wildfires caused by equipment 664 250 7 48 120 MILES COMPLETED MILES 2019 2020 2021 2022 2023 2024 1,671 1,951 System Hardening 1,224 Strengthening ou
Slide 28: Appendix 8: Physical Risk Mitigation Progress Then & Now
Appendix 8: Physical Risk Mitigation Progress Then & Now 2017 2023 2019-2023 Actuals SITUATIONAL AWARENESS ASSET IMPROVEMENTS EPSS High-Definition Cameras with AI Capability 602 Undergrounding 664 MILES COMPLETED CAMERAS INSTALLED PSPS Weather Stations 1,424 System Hardening 1,671 10K UG Program STA
Slide 29: Appendix 9: PG&E Utility Securitization Program
Appendix 9: PG&E Utility Securitization Program The Utility has completed $9.3B of $10.7B expected securitization issuances Complete AB 1054 Securitization Rate Neutral Securitization A.20-04-023 A.22-03-010 Statutory • SB 901 signed into law on September 21, 2018 • AB 1054 signed into law on July 1
Slide 30: Appendix 10: Regulatory Progress
Appendix 10: Regulatory Progress Regulatory Case/Filing Docket Status as of February 2024 Expected Milestones1 2023 GRC Application filed 6/30/21 Wildfire Self-Insurance Final Decision received 1/12/23 2023 GRC A.21-06-021 Phase 2 Proposed Decision June 2024 Phase 2 Testimony submitted 9/15/23 Final
Slide 31: Appendix 11: Presentation Endnotes
Appendix 11: Presentation Endnotes Slide 3: Delivered On 2023, Lifting 2024 And Beyond Slide titles are hyperlinks 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 12, Exhibits A and C for reconciliations of EPS results and guidance, respectively, on a GAAP basis to non-G
Slide 32: Appendix 11: Presentation Endnotes
Appendix 11: Presentation Endnotes Slide 10: 2023 Report Card Slide titles are hyperlinks 1. Defined by OEIS as a fire that caused at least one death, damaged over 500 structures, or burned over 5,000 acres. 2. 2% reduction calculated based on the prior year's operating and maintenance costs, exclud
Slide 33: Appendix 11: Presentation Endnotes
Appendix 11: Presentation Endnotes Slide 17: Performance Is Power Slide titles are hyperlinks 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 12, Exhibits A and C for reconciliations of EPS results and guidance, respectively, on a GAAP basis to non-GAAP core earnings per
Slide 34: Appendix 12: Supplemental Earnings Materials
Appendix 12: Supplemental Earnings Materials Exhibit Title Slide (Link) Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Slides 35-38 Exhibit A Generally Accepted Accounting Principles (“GAAP”) to Non- GAAP Core Earnings Exhibit B Key Dr
Slide 35: 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 Fourth Quarter and Full Year, 2023 vs. 2022 (in millions, except per share amounts) Three Months Ende
Slide 36: 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 Fourth Quarter and Full Year, 2023 vs. 2022 (in millions, except per share amounts) (2) The Utility r
Slide 37: 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 Fourth Quarter and Full Year, 2023 vs. 2022 (in millions, except per share amounts) (4) Includes any
Slide 38: 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 Fourth Quarter and Full Year, 2023 vs. 2022 (in millions, except per share amounts) (6) The Utility r
Slide 39: Exhibit B: Key Drivers of Non-GAAP Core EPS
Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Earnings per Common Share ("EPS") Fourth Quarter and Full Year, 2023 vs. 2022 (in millions, except per share amounts) Fourth Quarter 2023 vs. 2022 Year to Date 2023 vs. 2022 Earnings Earnings per Earnings Earnings per Common Share Common Sha
Slide 40: Exhibit C: 2024 Earnings Guidance
Exhibit C: PG&E Corporation's 2024 Earnings Guidance 2024 EPS guidance Low High Estimated EPS on a GAAP basis ~ $ 1.10 ~ $ 1.14 Estimated non-core items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.16 ~ 0.16 Bankruptcy and legal costs (3) ~ 0.02 ~ 0.02 SB 901 securitization (4) ~ 0.01 ~ 0
Slide 41: Exhibit C: 2024 Earnings Guidance
Exhibit C: 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, pr
Slide 42: Exhibit C: 2024 Earnings Guidance
Exhibit C: 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
Slide 43: Exhibit C: 2024 Earnings Guidance
Exhibit C: 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 Kin
Slide 44: Exhibit D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
Exhibit D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Full Year, 2023 vs. 2022 Year Ended December 31, (in millions) 2023 2022 PG&E Corporation’s Net Income on a GAAP basis $ 2,256 $ 1,814 Income tax benefit (1,557) (1,338) Other income, net (272) (394) Interest expe
Slide 45: 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