Slide 1: 2019 First Quarter Earnings
2019 FIRST QUARTER EARNINGS May 2, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements regarding management’s expectations and objectives for future periods as well as forecasts and estimates regarding potential liability in connection with the 2018 Camp fire and 2017 Northern California wildfires, the proposed Wildfire
Slide 3: Wildfire Safety Plan
Wildfire Safety Plan ~$8.2B planned through 2023 (1) (2) (4) Key Plan Elements ($B) 2.5 Public Safety • Expanded Public Safety Power Shut-off program in 2019 Power Shut-off to include up to 500 kV transmission lines 2.0 Enhanced • Enhanced asset inspections in HFTD(3) by May 31, 2019 (5): - ~685,000
Slide 4: Q1 2019 Earnings Results
Q1 2019 Earnings Results ($ in millions, except per share amounts) Earnings EPS Earnings on a GAAP basis $ 136 $ 0.25 Items Impacting Comparability Electric asset inspection costs 151 0.29 2018 Camp fire-related costs 138 0.26 Chapter 11-related costs 97 0.18 2017 Northern California wildfire-relate
Slide 5: Q1 2019: Quarter over Quarter Comparison
Q1 2019: Quarter over Quarter Comparison Non-GAAP Earnings per Share from Operations $1.20 $0.04 $0.01 ($0.02) $0.04 $0.06 $1.00 $0.80 $0.60 $1.04 $0.91 $0.40 $0.20 $0.00 Q1 2018 Growth in Liability Insurance Timing of Taxes Miscellaneous Increase in Shares Q1 2019 EPS from Rate Base Premiums Outsta
Slide 6: 2019 Assumptions
2019 Assumptions Capital Expenditures Key Factors Affecting ($ millions) Earnings from Operations 2019 - Higher financing costs General Rate Case 4,500 - Incremental wildfire risk mitigation costs Gas Transmission and Storage 800 - Insurance premiums, net of regulatory cost recovery Transmission Own
Slide 7: 2019 Items Impacting Comparability Guidance
2019 Items Impacting Comparability Guidance ($ millions, pre-tax) 2018 Camp fire-related costs (1) 340 - 420 2017 Northern California wildfire-related costs (2) 50 - 90 Electric asset inspection costs (3) 600 - 900 Chapter 11-related costs (4) ~360 - ~430 Estimated 2019 Items Impacting Comparability
Slide 8: Cap Ex Forecast
Cap Ex Forecast Capital Expenditures 2018-2023 $7.1B ~$0.1B ~$0.2B ~$7B $6.6B ~$1.0B ~$5.7B CWSP (2) $~700M Other GRC $~300M 2018 Recorded 2019 Currently Incremental Incremental Incremental Authorized Authorized GRC Request GT&S Request TO Request Plus Requested CapEx CapEx Range of ~$5.7B to ~$7B a
Slide 9: Expected Ratebase Growth
Expected Ratebase Growth 2018-2023 Weighted Average Ratebase (1) (4) ~7 – 8.5% CAGR ~$52.0-56.0B ~$49.5-52.5B ~$47.0-49.0B ~$44.5-45.5B ~$40.5B $36.8B (3) 2018 2019 2020 2021 2022 2023 General Rate Case (2) Gas Transmission & Storage Electric Transmission Owner Range (1) Weighted average ratebase re
Slide 10: Cap Ex and Ratebase Assumptions
Cap Ex and Ratebase Assumptions Base Case Assumptions 2020 2021 2022 2023 General Rate Case L 2017 GRC Decision H 2020 GRC Filing (including CWSP) (1) Gas Transmission & Storage L 2015 GT&S Phase 2 Decision H 2019 GT&S Filing Transmission Owner L TO17 Settlement H TO20 Filing Light-Duty EV Infrastru
Slide 11: Appendix
[t PG&E Corporation Appendix
Slide 12: Table of Contents
Table of Contents Appendix 1 – Supplemental Earnings Materials Slides 13-27 Appendix 2 – Overview of Regulatory Cases Slides 28-31 12
Slide 13: Appendix 1 – Supplemental Earnings Materials
Appendix 1 – Supplemental Earnings Materials Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Slides 14-15 Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations Exhibit B: Key Drivers of PG&E Cor
Slide 14: Exhibit A: Reconciliation of Consolidated Income to Non-GAAP Earnings
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations First Quarter, 2019 vs. 2018 (in millions, except per share amounts) Three Months Ended Marc
Slide 15: Exhibit A: Reconciliation of Consolidated Income to Non-GAAP Earnings
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations Three Months Ended (in millions, pre-tax) March 31, 2019 DIP financing costs $ 114 Legal and
Slide 16: Exhibit B: Key Drivers of Non-GAAP EPS from Operations
Exhibit B: Key Drivers of PG&E Corporation’s Non-GAAP Earnings per Common Share (“EPS”) from Operations First Quarter, 2019 vs. 2018 (in millions, except per share amounts) First Quarter 2019 vs. 2018 Earnings per Common Share Earnings (Diluted) (1) 2018 Non-GAAP Earnings from Operations $ 468 $ 0.9
Slide 17: Exhibit C: Operational Performance Metrics
Exhibit C: Operational Performance Metrics Meets YTD 2019 Performance Results Q1 Actual 2019 Target Target (1) Safety Nuclear Operations Safety Diablo Canyon Power Plant (DCPP) Reliability and Safety 99.9 93.7 P Electric Operations Safety Public Safety Index 0.5 1.0 Gas and Electric Operations Safet
Slide 18: Definitions of 2018 Operational Performance Metrics
Definitions of 2018 Operational Performance Metrics from Exhibit C Safety Public and employee safety are measured in four areas: Nuclear Operations Safety, Electric Operations Safety, Gas Operations Safety, and Employee Safety. The safety of the Utility’s nuclear power operations, DCPP Unit 1 and Un
Slide 19: Exhibit D: Sales and Sources Summary
Exhibit D: Pacific Gas and Electric Company Sales and Sources Summary First Quarter, 2019 vs. 2018 Three Months Ended March 31, 2019 2018 Sales from Energy Deliveries (in millions kWh) 18,435 18,820 Total Electric Customers at March 31 5,421,936 5,409,768 Total Gas Sales (in Bcf) 260 232 Total Gas C
Slide 20: Exhibit E: 2019 Items Impacting Comparability Guidance
Exhibit E: PG&E Corporation’s 2019 Items Impacting Comparability (“IIC”) Guidance 2019 IIC Guidance (in millions, after-tax) Low High (1) Estimated Items Impacting Comparability: 2018 Camp fire-related costs (2) $ 302 $ 245 2017 Northern California wildfire-related costs (3) 65 36 (4) Electric asset
Slide 21: Exhibit E: 2019 Items Impacting Comparability Guidance
Exhibit E: PG&E Corporation’s 2019 Items Impacting Comparability (“IIC”) Guidance (5) “Chapter 11-related costs” consists of external legal, financing, and other fees, net of interest income, directly associated with PG&E Corporation’s and the Utility’s Chapter 11 Cases, of which ~$100 million of le
Slide 22: Exhibit F: General Earnings Sensitivities for 2019
Exhibit F: General Earnings Sensitivities for 2019 PG&E Corporation and Pacific Gas and Electric Company Variable Description of Change Estimated 2019 Earnings Impact Rate base +/- $100 million change in allowed rate base +/- $5 million Return on equity (ROE) +/- 0.1% change in allowed ROE +/- $21mi
Slide 23: Exhibit G: Use of Non-GAAP Financial Measures
Exhibit G: 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 earnings from operations” and “non- GAAP EPS from operations” in or
Slide 24: Exhibit H: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
Exhibit H: GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation and Pacific Gas and Electric Company First Quarter, 2019 vs. 2018 Three Months Ended March 31, (in millions) 2019 2018 PG&E Corporation’s Net Income on a GAAP basis $ 136 $ 445 Income tax provision (benefit
Slide 25: Exhibit I: Expected Timelines of Selected Regulatory Cases
Exhibit I: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2019 Gas Transmission and Storage Rate Case A.17-11-009 Nov 17, 2017 – Application filed Jan 4, 2018 – Prehearing Conference (PHC) Mar 30, 2018 – Update testimony filed to r
Slide 26: Exhibit I: Expected Timelines of Selected Regulatory Cases
Exhibit I: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Locate and Mark OII I.18-12-007 Dec 13, 2018 – President Picker issued order initiating investigation Jan 14, 2019 – PG&E submitted its 30 Day Report Mar 14, 2019 – PG&E sub
Slide 27: Exhibit I: Expected Timelines of Selected Regulatory Cases
Exhibit I: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Transmission Owner Rate Case (TO20) ER19-13 Oct 1, 2018 – Application for TO20 filed Nov 30, 2018 – FERC accepted TO20 filing and set interim rates effective May 1, 2019 Wil
Slide 28: 2020 CPUC General Rate Case
A P P E N D I X 2 – O V E RV I E W O F K E Y R E G U L AT O RY C A S E S 2020 CPUC General Rate Case On December 13, 2018, PG&E filed its application for its 2020 General Rate Case requesting a ~$1.1B increase in revenue requirement over 2019 authorized. ($ billions) 2020 2021 2022 Revenue Require
Slide 29: 2019 CPUC Gas Transmission and Storage Rate Case
A P P E N D I X 2 – O V E RV I E W O F K E Y R E G U L AT O RY C A S E S 2019 CPUC Gas Transmission and Storage Rate Case On November 17, 2017, PG&E filed its 2019 Gas Transmission and Storage rate case. PG&E subsequently revised its request to reflect impacts from the Tax Cuts and Jobs Act as wel
Slide 30: FERC Transmission Owner Rate Case
A P P E N D I X 2 – O V E RV I E W O F K E Y R E G U L AT O RY C A S E S FERC Transmission Owner Rate Case TO18 (2017 Revenues) • July 29, 2016 – Filed TO18 with FERC requesting $1.7 billion revenue requirement, an ROE (inclusive of 50 basis point adder) of 10.90% • A final decision is expected in t
Slide 31: 2020 Cost of Capital Filing
A P P E N D I X 2 – O V E RV I E W O F K E Y R E G U L AT O RY C A S E S 2020 Cost of Capital Filing On April 22, 2018, PG&E filed its application for its 2020 Cost of Capital, which would result in a $1.2 billion increase in its revenue requirement based on currently authorized rate base. 2019 Cu