Slide 1: 2024 Second Quarter Earnings
2024 SECOND QUARTER EARNINGS Delivering For Customers AND Investors July 25, 2024 1
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 Reaffirmed Key Takeaways 31¢ $1.33 - $1.37 On Track For Guidance 2024 Guidance Second Quarter Power Pyramid At least At least 69¢ 10% 9% Risk Mitigations Delivering First Half 2024 2025 - 2028 Simple, Affordable Model Amplified No New Equity
Slide 4: PG&E Power Pyramid
PG&E Power Pyramid… Decarbonized Energy System Affordable and Resilient Energy Physical and Financial Safety …Delivering For Customers AND Investors 4
Slide 5: Physical Risk Mitigations
Physical Risk Mitigations... Preventing Ignitions Weather-Normalized Ignition Rate ▪ Weather stations, advanced meteorology and fire science models ▪ Inspections and repairs 3.23 IGNITION ▪ Vegetation management 2.76 RATE DOWN ▪ Undergrounding and covered conductor 2.67 ▪ Transmission operational co
Slide 6: AB 1054 In California
AB 1054 In California… Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance Physical Risk Protections Offered Under AB 1054 Reduction Drives Financial Protections Liquidity Cost Recovery Reimbursement Available when needed Improved prudency standard1 Maximum liability capped Physical Risk 1
Slide 7: Our Simple, Affordable Model
Our Simple, Affordable Model… PLAN1 OPPORTUNITY1 Customer Capital Investment ~9% 9% - 10% Enablers O&M cost reduction (non-fuel)2 2% 2% 2% -- 3% 3% Electric load growth3 1% - 3% 2% 2% -- 4% 4% Other (including efficient financing)4 2% 2% 2% Subtotal 5% - 7% 6% - 9% Customer Bills: At or 2% - 4% 1% -
Slide 8: Reinventing Inspection Strategy And Work Execution
Reinventing Inspection Strategy And Work Execution… We are reducing costs and improving outcomes for customers by: Tracking toward cost savings of over $100M or ~1% of O&M Avoiding additional costs by creating efficiencies in our inspection strategy Enhanced operational results and completion times
Slide 9: Non-GAAP Core EPS Comparison
Non-GAAP Core EPS 1 Comparison... First Half 3¢ 13¢ Second Half 69¢ (5¢) (1¢) Factors 59¢ GRC Benefit2 7¢ Customer As Reported Capital Investments 52¢ Operating & Maintenance Savings Redeployment 2023 Customer Operating & Redeployment Timing 2024 First Half Capital Maintenance and First Half Investm
Slide 10: Five-Year $62B Capital Plan
Five-Year $62B Capital Plan… Weighted Average CapEx ($B)3 Rate Base ($B)1 $5B Plus At Least ~9.5% CAGR 2023-2028 $62B 2024-2028 Customer Beneficial CPUC CPUC Investment Opportunities4 FERC 90 FERC 14.0 82 13.6 12.7 73 11.5 68 Transportation Electrification 63 10.4 57 9.8 Capacity Investments 75 12.1
Slide 11: Five-Year Financing Plan
Five-Year Financing Plan… Amount ($billions) Five-Year Financing Plan 70 2024 – 2028 $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 & Other Issua
Slide 12: O&M Cost Reduction Performance
O&M Cost Reduction Performance… 2022 2023 2024 LONG-TERM OPPORTUNITY3 Actual Actual Plan PLAN3 Examples of O&M Cost (millions) (millions) (millions) (millions) (millions) Reductions (Non-Fuel) Resource Management $25 $90 $65 $65 $65 - $100 Efficiencies and Insurance 270 350 150 50 50 Capital Convers
Slide 13: New Load In PG&E's Service Area
New Load In PG&E’s Service Area… New Load Beneficial Load Data Centers Electric Vehicles Modeling Guidelines1 Incremental Load 1,000 MW 1M EVs System Capital Need $0.5B - $1.6B $1.5B - $2.0B Capital Needs New T&D Revenue from $450M $800M Incremental Load Less: Cost of Required ($100M - $250M) ($250M
Slide 14: Working With Policymakers And Stakeholders
Working With Policymakers And Stakeholders… Nov 2023 2023 GRC Final Decision May 2023 Jun 2023 Dec 2023 Mar 2024 Jul 2024 Safety Culture 2022 WMCE Diablo 2023 WMP 2023 WGSC GRC “Capacity Phase” Proceeding Interim Rate Canyon NRC Final Decision Interim Rate Relief Final Decision Resolved Relief Final
Slide 15: Credit Rating Improvements
Credit Rating Improvements 1… SCALE SCALE RATING RATING Moody’s Moody's S&P/Fitch S&P/Fitch Moody’s Moody’s S&P Fitch Fitch A2 A A3 A- Utility Investment Secured Rating Baa1 BBB+ Grade Present Baa2 BBB 2020 Baa3 BBB- Issuer Credit Rating2 Ba1 BB+ Sub- Present Investment Ba2 BB Grade 2020 Ba3 BB- Out
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% Investment Grade & Credit Ratings
Slide 17: Differentiated Growth And Regulatory Visibility
Differentiated Growth And Regulatory Visibility… Premium Rate Base and Core EPS Growth1 Capital to Expense Ratio4 2.4 $B ~9.5% 1.6 CAGR 9% 90 9% 82 68 73 9% 0.8 63 57 9% $1.23 $1.10 10% $1.00 2 PG&E 2023 2023 Peer Avg 2023 Peer Top Decile 23A 24F 25F 26F 27F 28F 21A 22A 23A 24F 25F 26F 27F 28F Load
Slide 18: Q&A
Decarbonized Energy System Q&A Affordable and Resilient Energy Physical and Financial Safety 18
Slide 19: Appendix: Presentation Endnotes
Appendix 1 Presentation Endnotes 19
Slide 20: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide titles are hyperlinks Slide 3: Reaffirming Guidance 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 3, Exhibits A and C for reconciliations of EPS results and guidance, respectively, on a GAAP basis to non-GAAP core earnings per sh
Slide 21: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide titles are hyperlinks Slide 12: O&M Cost Reduction Performance 1. Denoted amount is immaterial. 2. A higher discount rate used to measure the projected benefit costs at December 31, 2023 compared to December 31, 2022 resulted in lower pension and other post-re
Slide 22: Appendix 1: Presentation Endnotes
Appendix 1: Presentation Endnotes Slide titles are hyperlinks Slide 24: Appendix 2: 2024 Factors Impacting Earnings 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 3, Exhibit C for a reconciliation of EPS guidance on a GAAP basis to non-GAAP core earnings per share and A
Slide 23: Appendix: Supplemental Earnings Materials
Appendix 2 Supplemental Earnings Materials 23
Slide 24: 2024 Factors Impacting Earnings
2024 Factors Impacting Earnings Key Ranges Weighted Average Rate Base2 Equity Ratio:3 52% Return on Equity:3 10.7%4 Non-GAAP New Equity Core EPS1 in 2024 CPUC $52B FERC $11B $1.33 - $1.37 $0 Total Rate Base $63B Key Factors Affecting Non-Core Items5 Non-GAAP Core Earnings7 ($ millions after tax) ($
Slide 25: Expected Recovery Of Wildfire-Related Costs
Expected Recovery Of Wildfire-Related Costs Amount Recovery Outstanding By Year ($billions) Recovery Status 5 Approved as of June 30, 2024 4.6 Pending 0.9 Yet To Be Filed $0.6B 4 Total Approved 3.0 2021 WMCE $587M 3 0.2 $2.0B 2022 WMCE $64M Pending 2023 WMCE $1,031M 2.6 2.2 2023 WGSC $373M 2 1.6 1.8
Slide 26: SB 846 Diablo Canyon Legislation Cost Recovery
SB 846 Diablo Canyon Legislation 10/18/22 3/2/23 12/19/23 6/25 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 and Safety DWR Evaluation Report 9/2/22 11/7
Slide 27: Wildfire Mitigation Plan Progress
Wildfire Mitigation Plan Progress Completed 2019-2023 2024 914 Exhibit E: PG&E Corporation's 2020 and 2021 Earnings ACTUALS Guidance TARGET 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
Slide 28: Physical Risk Mitigation Progress Then & Now
Physical Risk Mitigation Progress Then & Now 2017 2024 SITUATIONAL AWARENESS ASSET IMPROVEMENTS EPSS High-Definition Cameras with AI Capability 614 CAMERAS INSTALLED Undergrounding 679 MILES COMPLETED* PSPS Weather Stations 1,561 STATIONS INSTALLED System Hardening 1,765 MILES COMPLETED Hazard Aware
Slide 29: PG&E Utility Securitization Program
PG&E Utility Securitization Program The Utility has completed $9.3B of $10.7B expected securitization issuances. Rate Neutral Securitization AB 1054 Capex Securitization A.20-04-023 Complete A.22-03-010 ▪ SB 901 signed into law ▪ AB 1054 signed into law on July 12, 2019 Statutory on September 21, 20
Slide 30: California Wildfire Risk Framework
California Wildfire Risk Framework 93%3 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 • Annual Wildfire Mitigation • W
Slide 31: Regulatory Progress
Regulatory Progress Regulatory Case/Filing Docket Status as of July 2024 Expected Milestones1 2023 GRC A.21-06-021 ▪ 2023 GRC Application filed 6/30/21 ▪ Wildfire Self-Insurance Final Decision received 1/12/23 ▪ Final Decision received 11/16/23 ▪ “Capacity Phase” Final Decision received 7/11/24 TO21
Slide 32: Appendix: Supplemental Non-GAAP Information
Appendix 3 Supplemental Non-GAAP Information 32
Slide 33: Supplemental Earnings Materials
Supplemental Earnings Materials Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance Exhibit Title Slide (Link) Reconciliation of PG&E Corporation's Consolidated Earnings Available Exhibit A for Common Shareholders in Accordance with Generally Accepted Slides 34-37 Accounting Principles (“G
Slide 34: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 35: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 36: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 37: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
Exhibit A:Exhibit Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Shareholders in Accordance Accordance with with Generally Generally Accepted Accepted Accounting Accoun
Slide 38: Exhibit B: Key Drivers of Non-GAAP Core EPS
Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Earnings per Common Share ("EPS") Earnings per Common Share ("EPS") Second Quarter, 2024 vs. 2023 (in millions, except per share amounts) Second Quarter 2024 vs. 2023 Year to Date 20
Slide 39: Exhibit C: PG&E Corporation's 2024 Earnings Guidance
Exhibit C: PG&E Exhibit Corporation's C: PG&E 2024 Corporation's 2024 Earnings Earnings Guidance Guidance Second Quarter, 2024 vs. 2023 2024 (in millions, except per share amounts) EPS guidance Low High Estimated EPS on a GAAP basis ~ $ 1.11 ~ $ 1.17 Estimated non-core items: (1) Amortization of Wil
Slide 40: Exhibit C: PG&E Corporation's 2024 Earnings Guidance
Exhibit C: PG&E Exhibit Corporation's C: PG&E 2024 Corporation's 2024 Earnings Earnings Guidance Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) “Bankruptcy and legal costs” consists of legal and other costs associated with PG&E Corporation’s and the Utility’s Chapter 11 f
Slide 41: Exhibit C: PG&E Corporation's 2024 Earnings Guidance
Exhibit C: PG&E Exhibit Corporation's C: PG&E 2024 Corporation's 2024 Earnings Earnings Guidance Guidance (5) “Investigation remedies” includes the settlement agreement resolving the Safety and Enforcement Division’s investigation into the 2020 Zogg fire, the Wildfires OII decision different, costs
Slide 42: Exhibit C: PG&E Corporation's 2024 Earnings Guidance
Exhibit C: PG&E Exhibit Corporation's C: PG&E 2024 Corporation's 2024 Earnings Earnings Guidance Guidance (7) “Tax-related adjustments” includes tax expense costs associated with the deductibility of certain customer bill credits issued in connection with the San Bruno natural gas explosion that occ
Slide 43: Exhibit D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
Exhibit Exhibit D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Year to Date, 2024 vs. 2023 Three Months Ended Six Months Ended June 30, June 30, (in millions) 2024 2023 2024 2023 PG&E Corporation’s Net Inco
Slide 44: Exhibit E: Non-GAAP Financial Measures
Exhibit E:E:Non-GAAP Exhibit Financial Non-GAAP Financial MeasuresMeasures Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance 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