Slide 1: 2020 Full Year and Fourth Quarter Earnings
2020 FULL YEAR AND FOURTH QUARTER EARNINGS February 25, 2021
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: Financial Targets and 2020 Recap
® Financial Targets and 2020 Recap Financial Targets $1.61 Non-GAAP Core EPS in 2020 in line with guidance range Delivering 2021 Non-GAAP Core EPS of $0.95-$1.05 Introducing a 2021-2025 Non-GAAP Core EPS CAGR of 10% 2020 Recap Executed on 2020 Wildfire Mitigation Plan to reduce risk Established CPUC
Slide 4: Enhanced Predictive Analytics Drive 2021 Dynamic Risk Models
® Enhanced Predictive Analytics Drive 2021 Dynamic Risk Models Focused on Reduced Risk Per Mile Likelihood Analysis Likelihood of Spread Consequence Predictive based on fuels, Predictive based on Predictive based on topography and weather simulated spread ignitions conditions modeling Dynamic Risk M
Slide 5: Improvement in System Visibility Allows More Targeted Public Safety Power Shutoffs
® Improvement in System Visibility Allows for More Targeted Public Safety Power Shutoffs High Resolution Weather Modeling Provides more precise localized weather forecasts Real Time Surveillance Network of 1,300 weather stations by the end of 2021 and 650 high-definition cameras by the end of 2022 e
Slide 6: Building a Playbook of Operational Excellence in 2021
® Building a Playbook of Operational Excellence in 2021 2021: A Focus on People, the Planet, and Prosperity, Underpinned by Performance New senior leadership team writing the PG&E clear sky playbook Underpinned by a lean operating system with customers at the core Delivering a regionalized hometown
Slide 7: Experienced Leaders Answering the Call
® Experienced Leaders Answering the Call Patti Poppe CEO PG&E Corp Former President and CEO CMS Energy 15 Years Utility Experience 15 Years Automotive Experience Adam Wright Marlene Santos COO EVP Chief Customer Officer 17 Years Utility Experience 39 Years Utility Experience Including: President & C
Slide 8: Performance is Power
® Performance is Power 2021: A Focus on People, the Planet, and Prosperity, Underpinned by Performance Senior leadership team developing the PG&E clear sky playbook Underpinned by a lean operating system with customers at the core Delivering a regionalized hometown experience Introducing a 10% Non-G
Slide 9: Achieved 2020 Non-Core Earnings Targets
® Achieved 2020 Non-Core Earnings Targets $44.1B 2020 Key Assumptions $44.5B $2.0B 10.25%$1.61 Equity Earning Ratebase Equity Earning Ratebase (1) Authorized CPUC ROE across Non-GAAP Core Earnings the Enterprise Non-GAAP (2) Core EPS Q4 2020 (in millions, except per share amounts) Earnings EPS Earni
Slide 10: Q4 2020 Quarter over Quarter Comparison
® Q4 2020 Quarter over Quarter Comparison primarily reflects dilution from July equity issuance and growth in rate base $0.68 $0.68 $0.20 $0.21 Non-GAAP core earnings is not calculated in accordance with GAAP and excludes non-core items. See Appendix 12, Exhibit A for a reconciliation of earnings pe
Slide 11: Affirming 2021 with lower equity guidance
® Affirming 2021 with lower equity guidance ~$47.5B ~$44.5B 10.25% ~$2.1-$2.25B $0.95-$1.05 Equity Earning Ratebase (1) Equity Earning Ratebase (1) Authorized CPUC ROE across Non-GAAP Core Earnings Non-GAAP Core EPS the Enterprise (2) Key Factors Affecting Non-GAAP Core Earnings Non-Core Items(5) ($
Slide 12: Substantial capital investments reflect a focus on risk reduction
® Substantial capital investments reflect a focus on risk reduction 2020-2025 CapEx Forecast (1) Subject to Ongoing and ($Billions) Future Recovery Requests $7.9-$9.5 $7.8-$8.7 $7.9-$8.8 Spend driven by: $7.5-$8.3 $7.8-$8.2 • Wildfire Mitigation Plan $7.6 Memorandum Account (WMPMA) • Catastrophic Ev
Slide 13: Ratebase growth projected at 8.5% from 2021 to 2025
® Ratebase growth projected at 8.5% from 2021 to 2025 Weighted Average Ratebase forecast by Rate Case ($B) Potential Growth Opportunities 8.5% CAGR on equity earning ratebase 2021- 2025 (1, 2) • Additional wildfire mitigation $62-$66 $59-$62 • Transportation electrification $55-$57 $49-$50 • Additio
Slide 14: Earnings Growth Driven by Rate Base and Debt Paydown
® Earnings Growth Driven by Rate Base and Debt Paydown 2021 – 2025 Outlook 10% ~8.5% Non-GAAP Core EPS Growth Ratebase Growth Aggressive deleveraging and Ratebase growth driven by reduced equity needs wildfire mitigation and gas improve financial health system safety capital See the Forward-Looking
Slide 15: Initial priorities: People, Planet, Prosperity
® “These initial priorities are the steps on the path to a new era at PG&E, focused on People, Planet, and Prosperity, with laser like focus on performance. ” Deliver a Regionalized Daily Heartbeat Clear-Sky Playbook Hometown Experience 15
Slide 16: Appendix
[t PG&E Corporation Appendix
Slide 17: Table of Contents
® Table of Contents Appendix 1 - Wildfire Reduction Programs Slide 18 Appendix 2 - AB 1054 Wildfire Fund Slide 19 Appendix 3 - Illustrative Wildfire Fund Scenarios Slide 20 Appendix 4 - Regulatory Progress Slide 21 Appendix 5 - Securitization Slide 22 Appendix 6 - COVID-19 Impacts Slide 23 Appendix
Slide 18: Appendix 1: Wildfire Reduction Programs
® Appendix 1: Wildfire Reduction Programs PROGRAM STATUS* GOAL/TARGET Enhanced and Targeted Inspections Implemented annual Inspection of distribution, transmission and substation equipment to address cycles in Tier 3 and Focus on highest risk potential risks every 3 years for Tier 2 components and a
Slide 19: Appendix 2: AB 1054 Wildfire Fund
® Appendix 2: AB 1054 Wildfire Fund (1) Wildfire Fund Contribution Treatment Total Funding and Participation • Contribution amounts amortized based on an assumed ~15-year life (2) Wildfire Fund Funding Sources ($B) • Tax treatment pending private letter ruling from the IRS Additional IOU Ongoing Fun
Slide 20: Appendix 3: Illustrative Wildfire Fund Scenarios
® Appendix 3: 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 Victims: PG&E Corporation CPUC Finds PG&E CPUC Finds PG&E Determined: P
Slide 21: Appendix 4: Regulatory Progress
® Appendix 4: Regulatory Progress Status as of Feb 2021 Expected Milestones(1) 2021 GRC 2020 Final Decision 12/3/20 2023 GRC Filing 2019 Final Decision GT&S GT&S Capital Audit Scoping Proposed Decision Q4 2021 Cost of Capital Final Decision(2) TO 18 Order TO 19 Final Decision (3) TO Rate Cases TO 20
Slide 22: Appendix 5: PG&E Catastrophic Wildfire Cost Securitization
® Appendix 5: PG&E Catastrophic Wildfire Cost Securitization Assuming regulatory approval consistent with CPUC filings, PG&E plans to sponsor the issuance of up to $7.5 billion of recovery bonds (the “Recovery Bonds”) through securitization to reimburse certain wildfire costs, which may begin in ear
Slide 23: Appendix 6: COVID-19 Impacts
® Appendix 6: 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 24: Appendix 7: Commitment to People, Planet and California's Prosperity
® Appendix 7: Commitment to People, Planet and California's Prosperity We are recommitting to California’s clean energy future by implementing and advocating for clean and equitable energy policy, investing in electrification, and preparing for the physical risks of climate change. Promoting Impleme
Slide 25: Appendix 8: PG&E Fire Victims Trust Registration Rights Agreement
® Appendix 8: PG&E Fire Victims Trust (FVT) Registration Rights Agreement Key Term Description “Resale” Registration • PG&E Corporation filed a registration statement with SEC to permit Fire Victim Trust (FVT) to sell its shares on a registered basis Statement • Registration statement maintained dur
Slide 26: Appendix 9: 2020 CPUC General Rate Case Overview
® Appendix 9: 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 ot
Slide 27: Appendix 10: FERC Transmission Owner Rate Cases
® Appendix 10: FERC Transmission Owner Rate Cases Revenues) 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) On July 29, 2016, PG&E filed TO18 with FERC requesting a ~$1.7B revenue req
Slide 28: Appendix 11: Expected Timelines of Selected Regulatory Cases
® Appendix 11: 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 29: Appendix 11: Expected Timelines of Selected Regulatory Cases
® Appendix 11: 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 30: Appendix 11: Expected Timelines of Selected Regulatory Cases
® Appendix 11: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Securitization A.20-04-023 Apr 30, 2020 - Application filed Oct 14, 2020 Intervenors' testimony Nov 11, 2020 PG&E Rebuttal testimony Dec 7-15, 2020 Evidentiary hearing Jan 15, 2021 Opening briefs Feb 1,
Slide 31: Appendix 11: Expected Timelines of Selected Regulatory Cases
® Appendix 11: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Regionalization A.20-06-011 June 30, 2020 - Application Filed Aug 17, 2020 PG&E Reply Dec 16, 2020 - Comments Feb 26, 2021 - Updated Proposal March 3, 2021 - Second Workshop April 2, 2021 - Comments on
Slide 32: Appendix 12: Supplemental Earnings Materials
® APPENDIX 12: Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Exhibit A: Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Slides 33-38 Core Earnings Exhibit B: Key Drivers of PG&E C
Slide 33: 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, 2020 vs. 2019 (in millions, except per share amounts) Thr
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, 2020 vs. 2019 (in millions, except per share amounts) (2)
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, 2020 vs. 2019 (in millions, except per share amounts) (5)
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, 2020 vs. 2019 (in millions, except per share amounts) (6)
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, 2020 vs. 2019 (in millions, except per share amounts) (7)
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, 2020 vs. 2019 (in millions, except per share amounts) (8)
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 Year to Date, 2020 vs. 2019 (in millions, except per share amounts) Fourth Quarter 2020 vs. 2019 Year Ended 2020 vs. 2019 Earnings Earnings per Common Earnings Earnings per Common Share
Slide 40: Exhibit C: Operational Performance Metrics
® Exhibit C: Operational Performance Metrics 2020 Performance Results 2020 Actual 2020 Target Meets Target Customer Welfare - prioritizing public and employee safety Electric Operations Reportable Fire Ignitions 148 101 Electric Asset Failure 1,823 2,166 P Distribution Circuit Sectionalization 8/26/
Slide 41: Definitions of 2020 Operational Performance Metrics
® 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 42: Definitions of 2020 Operational Performance Metrics
® 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 43: Exhibit D: Sales and Sources Summary
® Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary Fourth Quarter and Year to Date, 2020 vs. 2019 Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Sales from Energy Deliveries (in millions kWh) 19,299 18,870 78,497 78,070 Total Electric Customers at Dece
Slide 44: Exhibit E: 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance 2021 EPS Guidance Low High Estimated Loss on a GAAP basis $ (0.52) $ (0.38) Estimated Non-Core Items: (1) Bankruptcy and legal costs (2) ~ 0.68 ~ 0.65 Investigation remedies (3) ~ 0.05 ~ 0.05 Amortization of wildfire fund contribution (4) ~ 0.16
Slide 45: Exhibit E: 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance (3) “InvestigationExhibit remedies"E:includes PG&E costsCorporation's related to the Wildfire OII Decision 2020 and 2021Different, Paradise restoration Earnings Guidance and rebuild, and Locate and Mark OII system enhancements. The total offsett
Slide 46: Exhibit E: 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance (6) “Net securitization inception charge" represents a charge upon inception of securitization and is the result of an undiscounted regulatory liability associated with the revenue credits funded by the Net Operating Loss monetization. This refl
Slide 47: Exhibit F: General Earnings Sensitivities for 2021
® Exhibit F: General Earnings Sensitivities for 2021 Pacific Gas & Electric Company Estimated 2021 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 +/-$25 million
Slide 48: Exhibit G: GAAP Net Loss to Non-GAAP Adjusted EBITDA Reconciliation
® Exhibit G: GAAP Net Loss to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Year to Date, 2020 vs. 2019 Year Ended December 31, (in millions) 2020 2019 PG&E Corporation’s Net Loss on a GAAP basis $ (1,304) $ (7,642) Income tax provision (benefit) 362 (3,400) Other income, net (483) (250)
Slide 49: Exhibit H: Use of Non-GAAP Financial Measures
® Exhibit H: 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