Slide 1: 2022 Third Quarter Earnings
2022 THIRD QUARTER EARNINGS October 27, 2022
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 2022, 2023, and 2024 non-GAAP core earnings)
Slide 3: Delivering On 2022, Introducing 2023
® Delivering On 2022, Introducing 2023… NON-GAAP CORE EPS1 Results • Third Quarter - 29¢ • Third Quarter Year to Date - 84¢ Delivered EPS Growth • At Least 10% for 2022-2024 • At Least 9% in 2025 and 2026 On Track Guidance 2022 2023 2024 On Track $1.09 - $1.11 $1.19 - $1.23 EPS1 Up at Least 10% Up a
Slide 4: 2022: Mitigating Risk
® 2022: Mitigating Risk… Mitigating Physical Risk Mitigating Financial Risk System Resilience Customers • Improved Response to Extreme • Simple, Affordable Model Heat Conditions • Improved EPSS Outage • Wildfire Mitigation: Layers of Response Protection • Generation Minority Interest Sale Working wi
Slide 5: Adding Layers Of Protection
® Adding Layers Of Protection… 100% Wildfire Mitigation Programs PG&E actions (System Hardening/Undergrounding, Vegetation have mitigated Management, Enhanced Inspections and Repairs) 80% 90% 60% Enhanced Powerline Safety Settings (EPSS) of wildfire risk1 + Public Safety Power Shutoff 40% Partial Vo
Slide 6: An Adaptive, Systematic, Risk Mitigation Approach
An Adaptive, Systematic, Risk Mitigation ® Approach… EPSS and PSPS address a significant portion of the wildfire risk EPSS enabled Moist Fuels Very Dry Fuels + Wind Event R1 R2 R3 R4 R5 R5+ Fire Potential Index1 PSPS In 2012-2020, 95% of acres burned and 100% of structures burned occurred under R3 o
Slide 7: Simple, Affordable Model
® Simple, Affordable Model… OPPORTUNITIES1 Customer Capital Investment ~9% Long-Term Factors: Offset Customer Investment -O&M Cost Reduction (Non-Fuel)2 2% -Electric Load Growth3 1% - 3% -Other (Including Efficient Financing)4 2% Subtotal 5% - 7% Customer Impacts: At or Below Assumed Inflation 2% -
Slide 8: The Right Solutions for California
® The Right Solutions for California… SB 884 Undergrounding Legislation Pre-Legislation Benefits Annual targets for undergrounding projects approved by OEIS in the 10-Year Long-Term Plan, 18-Month Expedited Review Wildfire Mitigation Plan Cost recovery approved Predictable Cost Recovery in 4-yea
Slide 9: Engaging With Policymakers
® Engaging With Policymakers… 2019 Wildfire Insurance Fund Legislation Passes (AB 1054) FERC Approval of TO20 Settlement (10.45% ROE through 2023) 2020 Interim Rate Relief Authorized 2020 GRC Final Decision 2021 Favorable Final Decisions in the First AB 1054 Securitization, Short- Term Debt
Slide 10: Report Card
® Report Card… 2022 Metric 2022 Goal 2022-2026 Goal Status1 • Annual CPUC Reportable CUSTOMER WILDFIRE Ignitions greater than or 1 0 0 equal to 100 acres2 • Undergrounding Circuit 175 3,600 Miles3 • Gas Distribution Main 203 220 1,150 Replacement Miles4 • Annual O&M Cost 2% 2% Reduction (Non-Fuel)5
Slide 11: 2022 Non-GAAP Core EPS On Track
® 2022 Non-GAAP Core EPS1 On Track. . . First Nine Months Up 12¢ Fourth Quarter Forecast 2¢ 1¢-2¢ $1.09- 6¢ 1¢ $1.11 5¢ (6¢)-(5¢) $1.00 2021 Full Customer Cost Regulatory, Customer Cost Reinvestment 2022 Full Year capital reductions taxes, capital reductions and other Year (diluted)2 investments rei
Slide 12: Guidance Supports Investment
® Guidance Supports Investment. . . Customer Investment (CapEx) ~$36B UP ~$50B 40% Last Five Years Five Year Plan 2017 to 2021 2022 to 2026 Guidance 2022 2023 2024 On Track $1.09 - $1.11 $1.19 - $1.23 EPS1 Up at Least 10% Up at Least 10% Up at Least 10% New Equity $0 $0 $0 Presentation endnotes are
Slide 13: Simple, Affordable Model
® Simple, Affordable Model… MODEL1 POSSIBLE EXAMPLES OF O&M COST REDUCTION (NON-FUEL) ANNUAL FUTURE in Millions 2022 Plan Long- Term Plan Customer Capital ~9% Good Business Decisions Investment -Attrition $25 $25 -Contracting 150 50 Long-Term Factors: Offset -Capital Conversion 150 50 Customer Inves
Slide 14: Regulatory And Legislative Highlights
® Regulatory And Legislative Highlights… • 2022: Proposed and alternate proposed Cost of Capital decisions received • 2023: Final decision expected Q4 2022 • Self-insurance settlement filed with CPUC 2023 GRC • Final decision scheduled for Q3 2023 • $800M Approved for rate inclusion Wildfire-Related
Slide 15: Value Proposition
® Value Proposition… 2022-2024 2025-2026 1 Non-GAAP Core EPS (CAGR) 10% Non-GAAP Core EPS Growth At least 10% At least 9% 2 Dividend Eligibility reached mid-2023 Annual Non-GAAP Core EPS At least 10% At least 10% Growth & Dividend Yield 3 Rate Base Growth (CAGR) ~9.5% 4 O&M Cost Reduction (Non-Fuel)
Slide 16: 2022: Mitigating Risk
® 2022: Mitigating Risk… Mitigating Physical Risk Mitigating Financial Risk System Resilience Customers • Improved Response to Extreme • Simple, Affordable Model Heat Conditions • Improved EPSS Outage • Wildfire Mitigation: Layers of Response Protection • Generation Minority Interest Sale Working wi
Slide 17: Q&A
Q&A
Slide 18: Appendix
/t PG&E Corporation Appendix
Slide 19: Table of Contents
® Table of Contents Appendix 1 2022 Factors Impacting Earnings Slide 20 Appendix 2 2023 Factors Impacting Earnings Slide 21 Appendix 3 CapEx and Rate Base Slide 22 Appendix 4 Expected Recovery of Wildfire-Related Costs Slide 23 Appendix 5 SB 846 Diablo Canyon Legislation Slide 24 Appendix 6 Wildfire
Slide 20: Appendix 1: 2022 Factors Impacting Earnings
® Appendix 1: 2022 Factors Impacting Earnings Key Ranges Weighted Average Rate Base1 Non-GAAP Core EPS Equity Ratio:2 52% Return on Equity:3 10.25% General Rate Case ~$32.9B $1.09 - $1.11 Gas Transmission & Storage ~$6.2B New Equity Transmission Owner ~$10.7B $0 Total Rate Base ~$49.8B Key Factors A
Slide 21: Appendix 2: 2023 Factors Impacting Earnings
® Appendix 2: 2023 Factors Impacting Earnings Key Ranges Weighted Average Rate Base1 Non-GAAP Core EPS Equity Ratio:2 52% Return on Equity:3 10.25% $1.19 - $1.23 General Rate Case ~$44.5 - $48.5B Transmission Owner ~$11.5B New Equity in 2023 and 2024 Total Rate Base ~$56 - $60B $0 Key Factors Affect
Slide 22: Appendix 3: CapEx And Rate Base
® Appendix 3: CapEx And Rate Base Weighted average rate base ($B) Potential Growth Opportunities projected ~9.5% CAGR • Undergrounding on equity rate base 2021-2026 $65-$82 • Additional wildfire mitigation (including remote grid $60-$67 $62-$74 $56-$60 integration) $47.1 ~$49.8 • Transportation elec
Slide 23: Appendix 4: Expected Recovery Of Wildfire-Related Costs
Appendix 4: Expected Recovery Of Wildfire- ® Related Costs $ in Millions Approved Cost Recovery (Final Decisions) Expected Cash Flow Balance at Recovery Expected Rate Recovery by Year Recovery from Application 9/30/22 Through 2022 2023 Previously Incurred 2020 GRC1 630 Dec. 2023 117 514 Wildfire-Rel
Slide 24: Appendix 5: SB 846 Diablo Canyon Legislation
® Appendix 5: SB 846 Diablo Canyon Legislation Estimated Cost of Diablo Canyon Extension Compared to Alternative Non-GHG Emitting Technologies People $140 - 165 per MWh Planet $60 per MWh Prosperity Alternative New Renewable Diablo Canyon Baseload Generation Cost Recovery 2022-20241 2025-20302 Pre-E
Slide 25: Appendix 6: Wildfire Mitigation Plan Progress
® Appendix 6: Wildfire Mitigation Plan Progress1 Sectionalizing Devices Weather Stations 1,401 1,209 1,340 1,313 1,005 899 627 1,340 1,401 Devices 241 Stations Installed Installed 2019 2020 2021 2022 2019 2020 2021 2022 Enhanced Vegetation HD Cameras 7,813 502 593 Management 6,359 4,376 349 7,813 2,
Slide 26: Appendix 7: PG&E Utility Securitization Program
® Appendix 7: PG&E Utility Securitization Program The Utility has completed roughly $8.4B of the $10.7B securitization issuances expected over the next several years Complete Rate Neutral Securitization AB 1054 Securitization A.20-04-023 A.22-03-010 Statutory • SB 901 signed into law on September 21
Slide 27: Appendix 8: Regulatory Progress
® Appendix 8: Regulatory Progress Status as of Regulatory Case/Filing Docket Expected Milestones1 October 2022 2023 GRC Filed 6/30/21 Proposed Decision Q3 2023 2023 GRC A.21-06-021 Supplemental Testimony Filed 2/25/22 Self-Insurance Decision Requested Self-Insurance Settlement Filed 10/7/22 by Febru
Slide 28: Appendix 9: Presentation Endnotes
® Appendix 9: Presentation Endnotes Slide titles are hyperlinks Slide 3: Delivering On 2022, Introducing 2023 1. Non-GAAP core EPS 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 core earnings p
Slide 29: Appendix 9: Presentation Endnotes
® Appendix 9: Presentation Endnotes Slide 11: 2022 Non-GAAP Core EPS On Track Slide titles are hyperlinks 1. Non-GAAP core EPS 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 core earnings per s
Slide 30: Appendix 9: Presentation Endnotes
® Appendix 9: Presentation Endnotes Slide 20: Appendix 1: 2022 Factors Impacting Earnings Slide titles are hyperlinks 1. 2022 equity earning rate base reflects 2020 GRC Final Decision, 2019 GT&S Final Decision, the April 15, 2021 FERC order denying the Utility's request for rehearing related to TO18
Slide 31: Appendix 10: Supplemental Earnings Materials
® Appendix 10: Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Exhibit A: Common Shareholders in Accordance with Generally Accepted Accounting Principles Slides 32-36 ("GAAP") to Non-GAAP Core Earnings Exhibit B: Key Drivers of PG&E C
Slide 32: 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 Third Quarter, 2022 vs. 2021 (in millions, except per share amounts) Three Months Ended Ni
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 Third Quarter, 2022 vs. 2021 (in millions, except per share amounts) (2) The Utility recor
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 Third Quarter, 2022 vs. 2021 (in millions, except per share amounts) (5) Includes bankrupt
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 Third Quarter, 2022 vs. 2021 (in millions, except per share amounts) (7) Includes costs as
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 Third Quarter, 2022 vs. 2021 (in millions, except per share amounts) (9) “Non-GAAP core ea
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") Third Quarter, 2022 vs. 2021 (in millions, except per share amounts) Third Quarter 2022 vs. 2021 Year to Date 2022 vs. 2021 Earnings per Earnings per Earnings Common Share Earnings Common Share (Diluted) (
Slide 38: Exhibit C: 2022 and 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2022 and 2023 Earnings Guidance 2022 2023 EPS Guidance Low High Low High Estimated Earnings on a GAAP basis ~ $ 0.80 ~ $ 1.01 ~ $ 0.98 ~ $ 1.21 Estimated Non-Core Items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.16 ~ 0.16 ~ 0.16 ~ 0.16 Bankruptcy and lega
Slide 39: Exhibit C: 2022 and 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2022 and 2023 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) “Bankruptcy and legal costs” consists of securities litigation costs, legal and other costs associated with PG&E Corporation’s and the Utility’s Chapter 11 filing, and ex
Slide 40: Exhibit C: 2022 and 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2022 and 2023 Earnings Guidance (5) “Investigation remedies” includes costs related to the 2019 Kincade fire settlement with the Safety and Enforcement Division approved by the CPUC on December 2, 2021, the Wildfires OII decision different, Paradise restoration and re
Slide 41: Exhibit C: 2022 and 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2022 and 2023 Earnings Guidance (7) “Fire Victim Trust tax benefit net of securitization” includes the impact of rate neutral (SB 901) securitization and tax benefits related to the Fire Victim Trust. Impacts of the rate neutral (SB 901) securitization include the est
Slide 42: Exhibit C: 2022 and 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2022 and 2023 Earnings Guidance (8) “Prior period net regulatory impact” represents the recovery of capital expenditures from 2011 through 2014 above amounts adopted in the 2011 GT&S rate case, net of the TO18 and TO19 ROE impact resulting from the FERC order dated Ma
Slide 43: Exhibit D: General Earnings Sensitivities for 2022 and 2023
® Exhibit D: General Earnings Sensitivities for 2022 and 2023 Pacific Gas & Electric Company Variable Description of Change Estimated 2022 Non-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 +/- $26
Slide 44: Exhibit E: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
® Exhibit E: GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Third Quarter, 2022 vs. 2021 Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 PG&E Corporation’s Net Income (Loss) on a GAAP basis $ 459 $ (1,088) $ 1,297
Slide 45: Exhibit F: Use of Non-GAAP Financial Measures
® Exhibit F: 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