Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Investor Presentation (November 2025)
32 slides from Pacific Gas & Electric's investor presentation, Nov 18, 2025
Slide 1: Kincade and Dixie AB 1054 Wildfire Cost Review and Recovery FAQs
Kincade and Dixie AB 1054 Wildfire Cost Review and Recovery FAQs Delivering For Customers AND Investors November 18, 2025 1
Slide 2: PG&E's AB 1054 Wildfire Cost Review and Recovery Proceeding
PG&E’s AB 1054 Wildfire Cost Review and Recovery Proceeding • On November 14, 2025, PG&E The CPUC has 12 months to issue a proposed decision in a catastrophic initiated the first catastrophic wildfire proceeding, subject to an extension of up to 6 months for good cause wildfire proceeding that invol
Slide 3: Wildfire Expense Memorandum Account (WEMA) As Of 9/30/25
Wildfire Expense Memorandum Account (WEMA) As Of 9/30/25 ($thousands) 2019 Kincade Fire 2021 Dixie Fire Total Claims Payments <$1 billion $1,000,000 $1,000,000 $2,000,000 Insurance Reimbursements (430,000) (500,000) (930,000) Claims Payments >$1 billion 276,001 858,614 1,134,615 Wildfire Fund Reimbu
Slide 4: Catastrophic Event Memorandum Accounts (CEMA) As Of 2/28/25
Catastrophic Event Memorandum Accounts (CEMA) As Of 2/28/25 ($thousands) Expense Capital Total Kincade and Dixie CEMA Costs $242,018 $71,647 $71,647 CEMA Revenue Requirement (without interest) $241,810 $61,436 Interest (2019-2027) 55,129 3,037 CEMA Revenue Requirement (with interest) $296,939 $64,47
Slide 5: Key Factors Supporting Prudency: Kincade And Dixie Fires
Key Factors Supporting Prudency: Kincade And Dixie Fires Under AB 1054, a utility with a safety certification is presumed prudent unless a party “creates a serious doubt” regarding the reasonableness of the utility’s conduct. • PG&E had safety certifications at the time the Kincade and Dixie Fires i
Slide 6: Key Factors Supporting Prudency: Kincade And Dixie Fires
Key Factors Supporting Prudency: Kincade And Dixie Fires Cal Fire concluded that the fire resulted from a broken jumper conductor on a PG&E transmission line. PG&E does not dispute this cause determination. • The ignition was not the result of any imprudence by PG&E 2019 • PG&E had no prior indicati
Slide 7: FAQs: AB 1054 Wildfire Cost Review and Recovery Proceeding
FAQs: AB 1054 Wildfire Cost Review and Recovery Proceeding Is this the first cost recovery application for a utility with a valid safety certificate under the new • Yes prudency standard established under Assembly Bill 1054? • PG&E proposes to update its WEMA and CEMA costs in How are you proposing
Slide 8: FAQs: AB 1054 Wildfire Cost Review and Recovery Proceeding
FAQs: AB 1054 Wildfire Cost Review and Recovery Proceeding • Yes; following a decision allowing cost recovery, PG&E plans to submit a securitization application for WEMA- Electric costs Can PG&E seek securitization for • The securitization application will request CPUC incremental cost recovery appr
Slide 9: Appendix 1: SB 254 & AB 1054
bet) PG&E Corporation Appendix 1 SB 254 & AB 1054
Slide 10: California Legislature Takes Further Action On Wildfire Risk
California Legislature Takes Further Action On Wildfire Risk Wildfire Fund Continuation Account: First step following January 2025 fires and New Features building on existing AB 1054 foundation Creates new Wildfire Fund Continuation Flexible Improved Account providing $18B for future wildfires Utili
Slide 11: Wildfire Fund Continuation Account To Cover Future Wildfires
Wildfire Fund Continuation Account To Cover Future Wildfires > $21.0 B $18.0 B Utility Utility Upfront Funding Contingent Funding $7.5 2019-2020 $3.9 * Over 5 years only if needed PG&E $4.8B PG&E $373M per year Utility Utility Annual Funding $3.0 Annual Funding 2019-2028 $5.1 2029-2045 $300M per yea
Slide 12: Existing Protections Enhanced Pending Broader Policy Update
Existing Protections Enhanced Pending Broader Policy Update Protections Offered Under AB 1054 & SB 254 Physical Risk Reduction Drives Cost Recovery Liquidity Reimbursement Financial Protections Unchanged Bolstered Improved Improved prudency standard1 Available when needed Disallowance cap retained P
Slide 13: Wide-Ranging Wildfire Policy Reform: Recommendations Due April 1, 2026
Wide-Ranging Wildfire Policy Reform: Recommendations Due April 1, 2026 The report shall include specific recommendations, including, but not limited to, on all of the following: Insurance and Physical Mitigation and New Models and Liability Reform Community Impacts Customer Impact ▪ Accessibility an
Slide 14: Fund Mechanics Largely Unchanged With Enhancements To Disallowance Framework
Fund Mechanics Largely Unchanged With Enhancements To Disallowance Framework Claims filed against Participating Utility Customer funded self-insurance Participating Utility seeks payment from the Fund for eligible claims >$1B covers first $1B of claims Participating Utility files cost recovery appli
Slide 15: FAQs: SB 254 Continuation Account
FAQs: SB 254 Continuation Account What will be the effective date • The date the governor signs the bill of SB 254? • California’s three large investor-owned utilities, Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and San Diego Which entities are eligible to Gas and Ele
Slide 16: FAQs: SB 254 Continuation Account
FAQs: SB 254 Continuation Account • The Continuation Account is only available for wildfires that ignite on or after the effective date of SB 254 What qualifies as a covered wildfire under the Continuation Account? • Dollars in the Continuation Account cannot be allocated to address liabilities from
Slide 17: FAQs: SB 254 Continuation Account
FAQs: SB 254 Continuation Account • $9B will come from a 10-year extension of the current non-bypassable customer charge (NBC); collection begins in 2036, when the existing NBC ends, and runs through 2045; AND • $9B will come from the three utilities as follows: • $5.1B from 17-year extension of exi
Slide 18: FAQs: SB 254 Continuation Account
FAQs: SB 254 Continuation Account • If the administrator determines that additional contributions from the utilities are needed to enable the Continuation Account to fund the timely payment of eligible claims due to the likelihood of exhaustion of revenues in the account, including the proceeds from
Slide 19: FAQs: SB 254 Eligible Claims
FAQs: SB 254 Eligible Claims • No change Does SB 254 change the definition • Claims for 3rd party damages resulting from covered wildfires exceeding of an “eligible claim?” $1B, in the aggregate, in any calendar year; including, but not limited to, economic damages, fire suppression, emotional distr
Slide 20: FAQs: SB 254 Disallowance Cap
FAQs: SB 254 Disallowance Cap • The CPUC makes the prudency determination in an after-the-fact wildfire cost recovery proceeding • The review occurs when directed by the administrator or when a participating utility has resolved all or substantially all claims associated with a covered wildfire • If
Slide 21: FAQs: SB 254 Phase 2
FAQs: SB 254 Phase 2 • Yes, the Wildfire Fund administrator must submit a report to the Legislature and Governor on or before April 1, 2026 Does Phase 2 have a defined timeline and deliverable? • The report shall evaluate and set forth recommendations on new models or approaches that mitigate damage
Slide 22: FAQs: SB 254 Capital Securitization
FAQs: SB 254 Capital Securitization • $6B on fire risk mitigation capital expenditures How much capex must be securitized under SB 254? • Note that SB 254 reference to $5B refers to previously completed capital securitization from AB 1054 • Applies to capital expenditures approved by the CPUC on or
Slide 23: FAQs: PG&E Exposure to Future Wildfire Claims
FAQs: PG&E Exposure to Future Wildfire Claims • PG&E maintains “customer-funded self-insurance” using a captive insurance vehicle to cover the first $1B of calendar year exposure How is the first $1B of wildfire exposure covered? • PG&E has proposed to continue this structure in its 2027 General Rat
Slide 24: FAQs: California Wildfire Fund – Scope & Coverage
FAQs: California Wildfire Fund – Scope & Coverage Which entities have access • California’s three investor-owned utilities, PG&E, SCE, and SDG&E (“participating to the original Wildfire utilities” or “utilities”) Fund? • Applies to a “covered wildfire,” defined as 1) fires which ignited on or after
Slide 25: FAQs: California Wildfire Fund – Capacity & Funding
FAQs: California Wildfire Fund – Capacity & Funding • Net asset balance of $12.9B as of June 30, 2025 per its financial report How much is in the Wildfire Fund (published July 24, 2025) currently? • See www.cawildfirefund.com for further information and meeting materials of the California Catastroph
Slide 26: FAQs: California Wildfire Fund – Mechanics & Payments
FAQs: California Wildfire Fund – Mechanics & Payments • No; participating utilities may have access to liquidity even if they do not have a valid safety certificate at the time of the ignition Is an annual safety certificate required to access the Funds? • Safety certification is required for 1) the
Slide 27: FAQs: Prudency Standard – Pre & Post AB 1054
FAQs: Prudency Standard – Pre & Post AB 1054 • Utilities have historically been held to the general standard of “reasonableness based upon the facts that are known or should have been known at the time” • There was significant variation in how CPUC precedent applied this reasonableness standard, esp
Slide 28: FAQs: Enhanced Prudency – AB 1054 Statutory Language
FAQs: Enhanced Prudency – AB 1054 Statutory Language • Section 451.1(b): Costs and expenses arising from a covered wildfire are just and reasonable if the conduct of the electrical corporation related to the ignition was consistent with actions that a reasonable utility would have undertaken in good
Slide 29: FAQs: CPUC Wildfire Cost Reasonableness Review
FAQs: CPUC Wildfire Cost Reasonableness Review • The CPUC makes the prudency determination in an after-the-fact wildfire cost recovery proceeding Who determines after-the-fact • With a valid safety certificate at the time of the ignition, a participating utility’s conduct is presumed prudent unless
Slide 30: FAQs: Fund Reimbursement & Utility Disallowance Cap
FAQs: Fund Reimbursement & Utility Dissallowance Cap • Cap does not apply if: • the administrator determines that the utility’s actions or inactions Under what circumstances that resulted in the applicable wildfire constituted “conscious or willful disregard of the rights and safety of others” would
Slide 31: Appendix 2: Presentation Endnotes
Appendix 2 Presentation Endnotes 31
Slide 32: Appendix 2: Presentation Endnotes
Appendix 2: Presentation Endnotes Slide titles are hyperlinks Slide 3: Wildfire Expense Memorandum Account (WEMA) As Of 9/30/25 1. Pursuant to AB 1054, the Wildfire Fund is paying 40 percent of eligible claims related to the 2019 Kincade Fire, which occurred while PG&E was in bankruptcy. Slide 12: A