Slide 1: 2024 First Quarter Earnings
2024 FIRST QUARTER EARNINGS Performance Is Power April 25, 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: Reaffirming Guidance
Reaffirming Guidance… NON-GAAP CORE EPS1 RESULTS GUIDANCE KEY TAKEAWAYS Reaffirmed On Track For Guidance $1.33 - $1.37 37¢ 2024 Guidance Differentiated Wildfire Risk Mitigation First Quarter At least At least 10% 9% Affordability Commitment 2024 2025 - 2028 Constructive Regulatory Support No New Equ
Slide 4: California Wildfire Risk Framework
California Wildfire Risk Framework… 94% Wildfire Risk Reduction3 AB 1054 Provides PG&E Self-Insurance Proven Mitigations Constructive Stakeholder Liquidity, Cost Recovery, Limits Exposure Reducing Wildfire Risk Engagement and Capped Liability • Wildfire Fund offers • Since 2023, claims up to • Annua
Slide 5: Physical Risk Mitigations Are Reducing Ignitions
Physical Risk Mitigations… 94% Wildfire Risk Reduction1 0 Catastrophic Wildfires 2 PSPS Events Cumulative CPUC-Reportable2 Ignitions HFTD + HFRA Weather-Normalized Ignition Rates in HFTD + HFRA R3+ per 100k Circuit Mile Days 2023 2022 2021 2017 IGNITION RATE DOWN 3.23 201 2.67 2.76 71% vs. 2017 IGNI
Slide 6: Simple, Affordable Model
Simple, Affordable Model… PLAN1 Customer Capital Investment ~9% Enablers -O&M cost reduction (non-fuel)2 2% -Electric load growth3 1% - 3% -Other (including efficient financing)4 2% Subtotal 5% - 7% Customer Bills: At or Below Assumed Inflation 2% - 4% Endnotes are included in the Appendix. …Key To
Slide 7: Affordable Business Model
Affordable Business Model… Combined Electric & Gas Monthly Bill: Residential Bundled Non-CARE 300 2% - 4% Average Annual Increase 290 Bill Monthly 2023 - 2026 Forecast ($)1 Deferred Collections Roll Off 280 One-Time ▪ 2022 WMCE IRR Deferred Recovery ▪ 2023 GRC Collections 270 GRC 260 250 240 230 202
Slide 8: GRC Authorizes Substantial Investments
GRC Authorizes Substantial Investments… Electric Reliability & Capacity ▪ Replacing 66,000 overhead poles ▪ Inspecting 2 million poles ▪ Replacing and/or maintaining 178,000 units of overhead and underground distribution line equipment ▪ Replacing 960 overhead transformers for capacity increases ▪ M
Slide 9: Performance Playbook: Work Bundling
Performance Playbook: Work Bundling Mega Bundle Circuit Project: a circuit-based approach, where all work funded on a circuit becomes a single scope of work made up of many smaller scopes including poles, tags, and switches. Waste Elimination Savings & Efficiencies ▪ At least $20 million customer sa
Slide 10: Non-GAAP Core EPS Comparison
Non-GAAP Core EPS1 Comparison… First Quarter Factors 6¢ 1¢ 37¢ Q2 through Q4 32¢ (2¢) GRC Benefit2 3¢ Customer Capital Investments As Reported 29¢ Operating & Maintenance Savings Redeployment 2023 Customer Operating & Redeployment 2024 First Capital Maintenance First Quarter Investment Savings Quart
Slide 11: Sector-Leading Rate Base Growth
Sector-Leading Rate Base Growth… Weighted Average Rate Base ($B)1 CapEx ($B)3 Plus at least $5B customer beneficial ~9.5% CAGR $62B 2024-2028 investment 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
Slide 12: 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 FFO/Debt2 Mid
Slide 13: Five-Year Financing Plan
Five-Year Financing Plan… Amount (billions) 2024-2028 $ 70 (excludes proposed Pac Gen sale) $62 $62 14 3 60 $50 (2½) 50 11 (2½) 40 (11) 30 20 10 0 Cash From Dividends Utility LT Debt Utility LT Debt Utility LT Debt PG&E Corp Debt Equity CapEx Operations Paid Maturities Refinanced Issuance Retired &
Slide 14: Credit Rating Improvements
Credit Rating Improvements1… Scale Moody's S&P / Fitch Moody’s S&P Fitch A2 A A3 A- Utility Baa1 BBB+ Secured Rating Investment Grade Baa2 BBB Present Baa3 BBB- 2020 Ba1 BB+ Issuer Credit Rating2 Ba2 BB Sub-Investment Present Grade Ba3 BB- 2020 Outlook Positive Stable Positive Endnotes are included
Slide 15: 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 16: Working With Policymakers And Stakeholders
Working With Policymakers And Stakeholders… May 2023 Jun 2023 Oct 2023 Nov 2023 Dec 2023 Jan 2024 TBD 2024 Late Q2 2024 Safety Culture 2022 SB 410 2023 GRC Cost of Dixie Fire Pacific GRC “Capacity Proceeding WMCE Signed Final Capital Settlement Generation Phase” Proposed Resolved Interim Decision AL
Slide 17: 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 BB
Slide 18: Differentiated Growth And Regulatory Visibility
Differentiated Growth And Regulatory Visibility… PREMIUM RATE BASE & CORE EPS GROWTH1 NON-FUEL O&M REDUCTIONS4 Percent 2017-2021 Average5 $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 19: Q&A
Patti Poppe Chief Executive Officer Q&A Carolyn Burke EVP, Chief Financial Officer Investor Meeting June 12, 2024 New York
Slide 20: Appendix
Appendix
Slide 21: Table of Contents
Table of Contents Appendix # Title Slide (Link) Appendix 1 2024 Factors Impacting Earnings Slide 22 Appendix 2 GRC Final Decision Slide 23 Appendix 3 Expected Recovery of Wildfire-Related Costs Slide 24 Appendix 4 AB 1054 Protections Slide 25 Appendix 5 SB 846 Diablo Canyon Legislation Slide 26 Appe
Slide 22: 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 23: Appendix 2: GRC Final Decision
Appendix 2: GRC Final Decision Revenue Requirement $B Funds 163 miles per year for gas 2023 2024 2025 2026 distribution pipe replacement $13.52 $14.24 $14.60 $14.80 Fully funds requested annual energization work Revenue Catch-Up Escalation Undergrounding Wildfire Mitigation • Cash collection of 2023
Slide 24: Appendix 3: Expected Recovery Of Wildfire-Related Costs
Appendix 3: Expected Recovery Of Wildfire-Related Costs $ billions Recovery Outstanding By Year 4.6 Recovery Status as of March 31, 2024 2021 WMCE $568M 0.9 2022 WMCE $336M $0.8B 2023 WMCE $1,030M Approved 3.0 2023 WGSC $483M 0.2 $2.4B 2.6 2.2 Pending 1.6 1.8 1.0 $1.2B 0.6 Yet to be Filed $4.4B 1.1
Slide 25: 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 26: 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 27: 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 28: Appendix 7: Wildfire Mitigation Plan Progress
Appendix 7: Wildfire Mitigation Plan Progress 2019-2023 2024 914 ACTUALS 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 our
Slide 29: 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 30: 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 31: Appendix 10: Regulatory Progress
Appendix 10: Regulatory Progress Regulatory Case/Filing Docket Status as of April 2024 Expected Milestones1 2023 GRC Application filed 6/30/21 Wildfire Self-Insurance Final Decision received 1/12/23 Phase 2 “Capacity Phase” Proposed Decision Late Q2 2023 GRC A.21-06-021 Phase 2 Testimony submitted 9
Slide 32: Appendix 11: Presentation Endnotes
Appendix 11: Presentation Endnotes Slide 3: Reaffirming Guidance 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 33: Appendix 11: Presentation Endnotes
Appendix 11: Presentation Endnotes Slide 12: Capital Investment For Customers Slide titles are hyperlinks 1. Capital Investment, as presented, is equivalent to Cash from Investment Activities on the Statement of Cash Flows, and as such, includes CapEx, contributions and withdrawals from the customer
Slide 34: Appendix 11: Presentation Endnotes
Appendix 11: Presentation Endnotes Slide 18: Differentiated Growth And Regulatory Visibility 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
Slide 35: 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 36-39 Exhibit A Generally Accepted Accounting Principles (“GAAP”) to Non- GAAP Core Earnings Exhibit B Key Dr
Slide 36: Exhibit A: GAAP to Non-GAAP Core Earnings Reconciliation
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 First Quarter, 2024 vs. 2023 (in millions, except per share amounts) Three Months Ended March 31, Ear
Slide 37: Exhibit A: GAAP to Non-GAAP Core Earnings Reconciliation
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 First Quarter, 2024 vs. 2023 (in millions, except per share amounts) (2) The Utility recorded costs o
Slide 38: Exhibit A: GAAP to Non-GAAP Core Earnings Reconciliation
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 First Quarter, 2024 vs. 2023 (in millions, except per share amounts) (5) Includes costs associated wi
Slide 39: Exhibit A: GAAP to Non-GAAP Core Earnings Reconciliation
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 First Quarter, 2024 vs. 2023 (in millions, except per share amounts) (7) Includes one-time costs rela
Slide 40: 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") First Quarter, 2024 vs. 2023 (in millions, except per share amounts) First Quarter 2024 vs. 2023 Earnings Earnings per Common Share 2023 Non-GAAP Core Earnings/EPS (1) $ 615 $ 0.29 2023 GRC benefit (2) 62 0.
Slide 41: Exhibit C: PG&E Corporation's 2024 Earnings Guidance
Exhibit C: PG&E Corporation's 2024 Earnings Guidance 2024 EPS guidance Low High Estimated EPS on a GAAP basis ~ $ 1.15 ~ $ 1.20 Estimated non-core items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.10 ~ 0.10 Bankruptcy and legal costs (3) ~ 0.03 ~ 0.01 SB 901 securitization (4) ~ 0.01 ~ 0
Slide 42: Exhibit C: PG&E Corporation's 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 43: Exhibit C: PG&E Corporation's 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 44: Exhibit C: PG&E Corporation's 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 45: 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 Year to Date, 2024 vs. 2023 Three Months Ended March 31, (in millions) 2024 2023 PG&E Corporation’s Net Income on a GAAP basis $ 735 $ 572 Income tax benefit 39 (348) Other income, net (76) (85) Interest expense 7
Slide 46: 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