Slide 1: 2021 Second Quarter Earnings
2021 SECOND QUARTER EARNINGS July 29, 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 2021 non-GAAP core earnings) as well as forecasts and estimates regarding PG&E Corporation’s and Pacific Gas and Electric Company’
Slide 3: 2021: A Focus on People, the Planet, and Prosperity
® 2021: A Focus on People, the Planet, and Prosperity People Planet Prosperity Execution On-Target for Improved PSPS Protocols Wildfire Mitigation Plan Q2 Non-GAAP Core EPS Filed 2023 General Rate Case of $0.27 Underpinned by Performance Non-GAAP core earnings is not calculated in accordance with GA
Slide 4: Responding to Current Conditions
® Responding to Current Conditions Respond to all outages in Additional Safety Patrols 1 HFTDs as emergency 3 for Prioritized Circuits response with high risk of initiating potential Hot/Dry Summer Day Wildfires Already operationalized Implement Fast Trip Setting Vegetation Management and 2 for Circ
Slide 5: PSPS Progress
® PSPS Progress 2021 Goal 2018-2021 Program 2021 Progress1 (12/31/21) Progress Sectionalizing 157 63% 250 988 Devices DEVICES Operational Devices Devices Transmission Line 19 66% 29 73 Switches SWITCHES Installed Switches Switches Temporary 4 80% 5 7 Distribution Complete SITES Sites Sites Microgrid
Slide 6: Wildfire Mitigation Plan
® Wildfire Mitigation Plan 2021 Goal 2018-2021 Program 2021 Progress1 (12/31/21) Progress System 71 39% 180 852 Hardening MILES Hardened Miles Miles Enhanced 598 33% 1,800 4,973 Vegetation MILES Completed Miles Miles Management Weather 165 55% 300 1,170 Stations STATIONS Installed Stations Stations
Slide 7: AB1054 Downside Protections
® AB1054 Downside Protections Improved Wildfire Safety Prudency Certificate Standard Approved Wildfire Liquidity to Pay Mitigation Plan Claims Design & Execute Maximum Risk Reducing Plan Liability Cap Provides downside protections 7
Slide 8: Q2 2021 Earnings Results
® Q2 2021 Earnings Results Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 (in millions, except per share amounts) Earnings EPS Earnings EPS PG&E Corporation’s Earnings on a GAAP basis $ 397 $ 0.18 $ 517 $ 0.24 Non-core items: Amortization of Wildfire Fund contribution 85 0.04 171 0.
Slide 9: Q2 2021 Quarter over Quarter Comparison
® Q2 2021 Quarter over Quarter Comparison ($0.77) $1.03 $0.26 ($0.03) $0.01 $0.01 $0.27 $0.04 ($0.01) ($0.01) $0.26 $0.27 Non-GAAP core earnings is not calculated in accordance with GAAP and excludes non-core items. See Appendix 10, Exhibit A for a reconciliation of EPS on a GAAP basis to non-GAAP c
Slide 10: 2021 Factors Impacting Earnings
® 2021 Factors Impacting Earnings ~$47.2B ~$44.5B 10.25% ~$2.1-$2.25B $0.95-$1.05 Equity Earning Ratebase (1) Equity Earning Ratebase (1) Authorized CPUC ROE across Non-GAAP Core Earnings Non-GAAP Core EPS the Enterprise (2) Key Factors Affecting Non-GAAP Core Earnings Non-Core Items(5) ($ millions
Slide 11: 2023 GRC
® 2023 GRC Gas System Electric System Wildfire Safety Clean Energy Safety & Reliability Safety & Reliability 2023 Revenue Requirement 2023 GRC Timeline $15.5B $3.6 2023 Increase June 30, 2021 GRC filed April 11 – May 2, 2022 Evidentiary Hearings $11.9 2022 Authorized December 2022 Expected PD 2023 R
Slide 12: Substantial Capital Investments
® Substantial Capital Investments (1) 2020-2026 CapEx Forecast ($B) $7.9-$10.3 (3) Subject to Ongoing and $7.8-$9.6 $7.9-$9.6 $8.0-$9.6 Future Recovery Requests $7.8-$8.9 $7.5-$8.5 Spend related to: $7.6 • 2023 GRC request including Wildfire Mitigation Balancing Account • Oakland HQ Purchase • Micro
Slide 13: Ratebase Growth Forecast
® Ratebase Growth Forecast Weighted Average Ratebase Forecast by Rate Case ($B) Potential Growth Opportunities ~8.5% CAGR • Additional wildfire mitigation on equity earning ratebase 2021 - 2026 $64-$71 $62-$68 • Transportation electrification $60-$64 $56-$60 • Additional distributed generation- enab
Slide 14: Balance Sheet Improvements
® Balance Sheet Improvements Cost Recovery Wildfire Costs - Regulatory Account Totals In Billions In Millions CEMA $916 Yet to be Filed WMPMA $459 $637 ~1.91 VMBA $594 $736 WEMA $230 $440 FHPMA $87 $198 WMBA $156 $192 Non-Current RTBA $242 $532 ~3.5B Filed for Recovery ~1.6 Current Filed for Recover
Slide 15: Multi-Year Financial Plan
® Multi-Year Financial Plan 2021 – 2026 Outlook 10% ~8.5% Non-GAAP Core EPS CAGR Ratebase CAGR Deleveraging and reduced Ratebase growth driven by equity needs improve wildfire mitigation and gas financial health system safety capital Driven by Ratebase and Debt Paydown Non-GAAP core earnings is not
Slide 16: See you soon! Investor Day – August 9, 2021
® People, Planet, Prosperity Underpinned by Performance People Planet Prosperity See you soon! Investor Day – August 9, 2021 16
Slide 17: Appendix
/k PG&E Corporation Appendix
Slide 18: Table of Contents
® Table of Contents Appendix 1 - Wildfire Risk Reduction Programs Slide 19 Appendix 2 - AB 1054 Wildfire Fund Slide 20 Appendix 3 - Illustrative Wildfire Fund Scenarios Slide 21 Appendix 4 - Regulatory Progress Slide 22 Appendix 5 - PG&E Catastrophic Wildfire Cost Securitization Slide 23 Appendix 6
Slide 19: Appendix 1: Wildfire Risk Reduction Programs
® Appendix 1: Wildfire Risk Reduction Programs 2018-2021 PROGRESS PROGRAM 2021 GOAL/TARGET As of June 30, 2021 Enhanced and Targeted Inspections • Complete annual cycles for Tier 3 Implementing annual cycles for Tier 3 Inspecting distribution, transmission and substation equipment to address potenti
Slide 20: Appendix 2: AB 1054 Wildfire Fund
® Appendix 2: AB 1054 Wildfire Fund (1) Wildfire Fund Contribution Treatment Total Funding and Participation • Contribution amounts amortized based on an assumed ~15-year life (2) Wildfire Fund Funding Sources ($B) Additional IOU Ongoing Funding over 10 Contribution • Tax treatment pending private l
Slide 21: 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 22: Appendix 4: Regulatory Progress
® Appendix 4: Regulatory Progress Status as of June 2021 Expected Milestones(1) 2021 2022 GRC 2023 GRC Filed 6/30/21 2023 GRC Filing Proposed Decision Expected Q4 2022 2019 Final Decision GT&S GT&S Capital Audit Settlement Proposed Decision Expected Q4 2021 Cost of Capital Final Decision(2) TO 18 Or
Slide 23: 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. Summary of Key Securit
Slide 24: Appendix 6: PG&E Wildfire Mitigation Capex Securitization
® Appendix 6: PG&E Wildfire Mitigation Capex Securitization PG&E plans to sponsor the issuance of up to $3.2 billion of recovery bonds (the “Recovery Bonds”) through securitization to reimburse certain capital expenses associated with wildfire risk mitigation, with authority to issue the first trans
Slide 25: Appendix 7: COVID-19 Impacts
® Appendix 7: 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 26: Appendix 8: Expected Timelines of Selected Regulatory Cases
® Appendix 8: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2023 General Rate Case (Phase I) A.18-11-009 June 30, 2021 – Application filed July 15, 2021 – Public workshop on GRC Application Aug 6, 2021 – Protests and responses to GRC application, pursuant to Rule
Slide 27: Appendix 8: Expected Timelines of Selected Regulatory Cases
® Appendix 8: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Transmission Owner Rate Case (TO19) ER17-2154 Jul 26, 2017 – PG&E filed TO19 rate case seeking an annual revenue requirement for 2018 Sept 28, 2017 – FERC accepted TO19 making rates effective Mar 1, 2018
Slide 28: Appendix 8: Expected Timelines of Selected Regulatory Cases
Appendix 8: Expected Timelines of Selected ® Regulatory Cases Regulatory Case Docket # Key Dates Stress Test Securitization Application A.20-04-023 Apr 30, 2020 - Application filed Oct 14, 2020 - Intervenors' Testimony Nov 11, 2020 - PG&E Rebuttal Testimony Dec 7-16, 2020 - Evidentiary Hearing Jan 1
Slide 29: Appendix 8: Expected Timelines of Selected Regulatory Cases
Appendix 8: Expected Timelines of Selected ® Regulatory Cases Regulatory Case Docket # Key Dates Regionalization A.20-06-011 Jun 30, 2020 - Application Filed Aug 17, 2020 PG&E Reply Dec 16, 2020 – Comments Feb 26, 2021 - Updated Proposal Mar 3, 2021 - Second Workshop Apr 2, 2021 - Comments on Update
Slide 30: Appendix 9: Presentation Footnotes
® Appendix 9: Presentation Footnotes Slide 5: 1. Year to date progress, as of June 30, 2021. 2. 2019-2021 progress. Slide 6: 1. Year to date progress, as of June 30, 2021. Slide 10: 1. 2021 equity earning ratebase reflects 2020 GRC Final Decision, 2019 GT&S Final Decision, the April 15, 2021 FERC or
Slide 31: Appendix 9: Presentation Footnotes
® Appendix 9: Presentation Footnotes Slide 14: 1. Includes amounts not yet filed for recovery less reserves and equity return that cannot be recognized for accounting purposes until approved by the CPUC. Slide 20: 1. Participation in the AB 1054 Wildfire Fund is subject to PG&E making the required a
Slide 32: Appendix 10: Supplemental Earnings Materials
® Appendix 10: Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Exhibit A: Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Slides 33-36 Non-GAAP Core Earnings Key Drivers of PG&E Corporation's Non-GAA
Slide 33: Exhibit A: Reconciliation of GAAP 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 Second Quarter, 2021 vs. 2020 (in millions, except per share amounts) Three Months Ended Six Months
Slide 34: Exhibit A: Reconciliation of GAAP 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 Second Quarter, 2021 vs. 2020 (in millions, except per share amounts) (2) The Utility recorded cost
Slide 35: Exhibit A: Reconciliation of GAAP 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 Second Quarter, 2021 vs. 2020 (in millions, except per share amounts) (5) The Utility incurred cost
Slide 36: Exhibit A: Reconciliation of GAAP 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 Second Quarter, 2021 vs. 2020 (in millions, except per share amounts) (6) The Utility incurred $122
Slide 37: 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") Second Quarter, 2021 vs. 2020 (in millions, except per share amounts) Second Quarter 2021 vs. 2020 Year to Date 2021 vs. 2020 Earnings per Earnings per Earnings Common Share Earnings Common Share (Diluted)
Slide 38: Exhibit C: Operational Performance Metrics
® Exhibit C: Operational Performance Metrics 2021 Performance Results YTD Actual 2021 Target Meets YTD Target Customer Welfare - prioritizing public and employee safety Electric Operations Wildfire Risk Reduction (1) 1 2 P Wire-Down Events Due to Equipment Failure Rate 2.600 2.161 Gas Operations Lar
Slide 39: Definitions of 2021 Operational Performance Metrics from Exhibit C
® Definitions of 2021 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 40: Definitions of 2021 Operational Performance Metrics from Exhibit C
® Definitions of 2021 Operational Performance Metrics from Exhibit C Customer Welfare – prioritizing public and employee safety (continued) • Electric 911 Emergency Response – Measures the percentage of time that PG&E personnel respond (are on site) within 60 minutes after receiving a 911 call, with
Slide 41: Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary
® Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary Second Quarter, 2021 vs. 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Sales from Energy Deliveries (in millions kWh) 18,292 17,908 36,186 36,171 Total Electric Customers at June 30 — 5,494,176 5,5
Slide 42: Exhibit E: PG&E Corporation's 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance 2021 EPS Guidance Low High Estimated Earnings on a GAAP basis $ 0.01 $ 0.15 Estimated Non-Core Items: (1) Bankruptcy and legal costs (2) ~ 0.69 ~ 0.66 Amortization of Wildfire Fund contribution (3) ~ 0.16 ~ 0.16 2019-2020 wildfire-related costs
Slide 43: Exhibit E: 2020 and 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) "Amortization of Wildfire Fund contribution” represents the amortization of Wildfire Fund contributions related to AB 1054. The total offsetting tax impact for the low and high no
Slide 44: Exhibit E: PG&E Corporation's 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2021 Earnings Guidance (6) “Prior period net regulatory recoveries" represents the recovery of capital expenditures from 2011 through 2014 above amounts adopted in the 2011 GT&S rate case, offset by the impact of the April 15, 2021 FERC order denying the Utility's req
Slide 45: Exhibit F: General Earnings Sensitivities for 2021
® Exhibit F: General Earnings Sensitivities for 2021 Pacific Gas & Electric Company Estimated 2021 Non-GAAP Variable Description of Change 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 46: Exhibit G: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
® Exhibit G: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Second Quarter, 2021 vs. 2020 Three Months Ended Six Months Ended June 30, June 30, (in millions) 2021 2020 2021 2020 PG&E Corporation’s Net Income on a GAAP basis $ 401 $ (1,968) $ 524 $ (1,594) Income tax prov
Slide 47: 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