Slide 1: 2023 First Quarter Earnings
2023 FIRST QUARTER EARNINGS May 4, 2023
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 2023 and 2024 non-GAAP core earnings), equit
Slide 3: Reaffirming 2023 Guidance
® Reaffirming 2023 Guidance… NON-GAAP CORE EPS1 RESULTS EPS GROWTH GUIDANCE At least New 10% EPS Equity 2023 and 2024 29¢ 2023 $1.19-$1.23 At least $0 1st Quarter ON TRACK Up at least 10% 9% 2025 and 2026 2024 Up at least 10% $0 ON TRACK DELIVERED ON TRACK Presentation endnotes are included in Appen
Slide 4: 2023: Mitigating Risk
® 2023: Mitigating Risk… Mitigating Physical Risk Mitigating Financial Risk System Resilience Customers ▪ Wildfire Mitigation: ▪ Simple, Affordable Model Layers of Protection ▪ Climate Credit Accelerated ▪ Additional Hydro Generation ▪ 2% Non-Fuel O&M Cost Reduction ▪ Winter Storm Response and Resto
Slide 5: Adding Layers Of Protection
® Adding Layers Of Protection… 100% Wildfire Mitigation Programs PG&E actions (System Hardening/Undergrounding, Vegetation Management, Enhanced Inspections and Repairs) have mitigated 80% 90% + 60% Enhanced Powerline Safety Settings (EPSS) of wildfire risk1 Public Safety Power 40% New measures are m
Slide 6: Simple, Affordable Model
® Simple, Affordable Model… OPPORTUNITIES1 Customer Capital Investment ~9% Offsets -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% - 4% Presentation endnotes are included
Slide 7: Working With Policymakers
® Working With Policymakers… Diablo Canyon Legislation Passed (SB 846) Undergrounding Legislation Passed (SB 884) Removed from Enhanced Oversight Enforcement 2022 2022 and 2023 Cost of Capital Decisions Received Net Energy Metering Decision Received Arrearage Payment Program Funds Received Wildfire
Slide 8: 2023 Report Card
® 2023 Report Card… Q1 2023 Metric 2023 Goal Long-Term Goal Status Catastrophic Wildfires1 0 0 ON TRACK Undergrounding Circuit Miles 350 10,000 ON TRACK Annual O&M Cost Reduction (Non-Fuel)2 2% 2% ON TRACK Rate Base Growth3 ~9.5% CAGR 2022-2027 ON TRACK Non-GAAP Core 2023 & 2024 at least 10% At leas
Slide 9: Non-GAAP Core EPS Comparison
® Non-GAAP Core EPS1 Comparison. . . First Quarter Q2-Q4 Factors 2¢ Customer 30¢ capital (1¢) 29¢ investments (2¢) Operating & Maintenance Savings Redeployment 2022 Operating & Redeployment Other 2023 First Maintenance First Quarter Quarter Presentation endnotes are included in Appendix 8. …On Track
Slide 10: Customer Investment Supports Guidance
® Customer Investment Supports Guidance... Capital Expenditure ~$52B $5B+ UPSIDE ~$39B OPPORTUNITIES • Incremental transmission capacity • Electric distribution capacity • Other growth Last Five Years Five Year Plan 2018 – 2022 2023 – 2027 Risk Reduction New Business and Capacity System Maintenance
Slide 11: Simple, Affordable Model Working
® Simple, Affordable Model Working… EXAMPLES OF MODEL1 O&M COST REDUCTION (NON-FUEL) OPPORTUNITIES 2023 Long-Term Plan Plan Customer Capital ~9% Good Business Decisions (millions) (millions) Investment -Attrition $ 25) $ 25) Offsets -Efficiencies & Insurance 200) 25) -Capital Conversion 50) 50) -O&M
Slide 12: Regulatory And Legislative Support
® Regulatory And Legislative Support… Cost of Capital ▪ 2023: Timely final decision received; phase 2 pending ▪ Self-insurance settlement approved 2023 GRC ▪ Final decision scheduled for Q3 2023 Pacific Generation ▪ PD within 90 days of Oct 5 (revised schedule) ▪ 2020 WMCE settlement approved Wildfi
Slide 13: 2023 EPS Sensitivities
® 2023 EPS Sensitivities… Sensitivity EPS Mitigation Sales Volume Electric Sales (GWh) +/- 1% 0¢ Decoupled Gas Sales (Bcf) +/- 1% 0¢ Decoupled Commodity Prices Power Prices Regulatory Deferrals; +/- $1 0¢ CAISO NP15 ($/MWh) ERRA, Supply PPAs Natural Gas Price +/- 50¢ 0¢ Monthly True-Up; Hedging PG&E
Slide 14: Value Proposition
® Value Proposition… 2022-2024 2025-2026 Non-GAAP Core EPS1 (CAGR) 10% Non-GAAP Core EPS Growth At least 10% At least 9% Dividend Eligibility reached mid-20232 Annual Non-GAAP Core EPS At least 10% At least 10% Growth & Dividend Yield Rate Base Growth (CAGR)3 ~9.5% O&M Cost Reduction (Non-Fuel)4 2%
Slide 15: 2023: Mitigating Risk
® 2023: Mitigating Risk… 2023 Investor Day 2023 EPS1 Guidance: May 24-25th $1.19-$1.23 Northern California ON TRACK Up at least 10% ~$52B Five Year ON TRACK Capital Investment Plan ~9.5% Rate Base ON TRACK CAGR, 2022-2027 10% Non-GAAP Core ON TRACK EPS1 CAGR, 2022-2026 Presentation endnotes are incl
Slide 16: Q&A
Q&A
Slide 17: Appendix
[t PG&E Corporation Appendix
Slide 18: Table of Contents
® Table of Contents Appendix Title Slide (Link) Appendix 1 2023 Factors Impacting Earnings Slide 19 Appendix 2 CapEx and Rate Base Slide 20 Appendix 3 Expected Recovery of Wildfire-Related Costs Slide 21 Appendix 4 SB 846 Diablo Canyon Legislation Slide 22 Appendix 5 Wildfire Mitigation Plan Progres
Slide 19: Appendix 1: 2023 Factors Impacting Earnings
® Appendix 1: 2023 Factors Impacting Earnings Key Ranges Weighted Average Rate Base2 Non-GAAP Core EPS1 Equity Ratio:3 52% Return on Equity:3 10.00% General Rate Case ~$44.5 - $48.5B $1.19-$1.23 Transmission Owner ~$11.5B New Equity in 2023 and 2024 Total Rate Base ~$56 - $60B $0 Key Factors Affecti
Slide 20: Appendix 2: CapEx And Rate Base
® Appendix 2: CapEx And Rate Base Weighted average rate base ($B) Upside Opportunities (+$5B CapEx)1 projected ~9.5% CAGR • Incremental transmission capacity on equity rate base 2022-2027 $67-$89 • Electric distribution capacity $65-$82 $60-$67 $62-$74 • Other growth ~$56-$60 $49.8 Gas Transmission
Slide 21: Appendix 3: Expected Recovery Of Wildfire-Related Costs
® Appendix 3: Expected Recovery Of Wildfire- Related Costs Approved Cost Recovery (Final Decisions) Balance at Recovery Expected Rate Recovery by Year Application 3/31/23 Through 2023 2024 2025+ 2020 GRC1 142 Dec. 2023 142 - - 2018 CEMA 52 May 2023 52 - - 2020 WMCE 616 Feb 2025 241 322 53 Total 810
Slide 22: Appendix 4: SB 846 Diablo Canyon Legislation
® Appendix 4: 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 23: Appendix 5: Wildfire Mitigation Plan Progress
® Appendix 5: Wildfire Mitigation Plan Progress1 Sectionalizing Devices 2023 Target Weather Stations 1,351 1,426 1,209 899 Devices Installed 1,424 1,351 75 241 Stations Installed PROGRAM COMPLETED 2019-2022 Actuals 2023 Target 2019-2022 2019 2020 2021 2022 2023 Undergrounding 650 HD Cameras Miles Co
Slide 24: Appendix 6: PG&E Utility Securitization Program
® Appendix 6: PG&E Utility Securitization Program The Utility has completed $9.3B of $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, 2018 • AB
Slide 25: Appendix 7: Regulatory Progress
® Appendix 7: Regulatory Progress Status as of Regulatory Case/Filing Docket Expected Milestones1 May 2023 2023 GRC filed 6/30/21 Proposed Decision Q2 2023 2023 GRC A.21-06-021 Wildfire Self-Insurance Final Decision received 1/12/23 Final Decision Q3 2023 2022 Application filed 8/23/21 2022 Cost of
Slide 26: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide titles are hyperlinks Slide 3: Reaffirming 2023 Guidance 1. Non-GAAP core EPS is not calculated in accordance with GAAP. See Appendix 9, Exhibit A for a reconciliation of EPS on a GAAP basis to non-GAAP core earnings per share and Appendix 9, Exhibit E regar
Slide 27: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide titles are hyperlinks Slide 11: Simple, Affordable Model Working 1. These numbers are illustrative approximations. 2. The Utility’s cost reduction strategies include increased efficiency and waste elimination driven by implementing the Lean operating system,
Slide 28: Appendix 8: Presentation Endnotes
® Appendix 8: Presentation Endnotes Slide titles are hyperlinks Slide 20: Appendix 2: CapEx And Rate Base 1. Upside opportunities of +$5 billion are not reflected in the CapEx or rate base ranges. 2. Low end of the range reflects authorized capital expenditures, including the full amount recoverable
Slide 29: Appendix 9: Supplemental Earnings Materials
® Appendix 9: Supplemental Earnings Materials Exhibit Title Slide (Link) Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Generally Exhibit A Slides 30-34 Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Exhibit B Key Dr
Slide 30: 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 First Quarter, 2023 vs. 2022 (in millions, except per share amounts) Three Months Ended March 31, E
Slide 31: 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 First Quarter, 2023 vs. 2022 (in millions, except per share amounts) (2) The Utility recorded costs
Slide 32: 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 First Quarter, 2023 vs. 2022 (in millions, except per share amounts) (4) Includes any earnings-impa
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 First Quarter, 2023 vs. 2022 (in millions, except per share amounts) (6) Includes adjustments assoc
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 First Quarter, 2023 vs. 2022 (in millions, except per share amounts) (8) Includes costs associated
Slide 35: 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") First Quarter, 2023 vs. 2022 (in millions, except per share amounts) First Quarter 2023 vs. 2022 Earnings Earnings per Common Share 2022 Non-GAAP Core Earnings/EPS (1) $ 639 $ 0.30 Operating and Maintenanc
Slide 36: Exhibit C: 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2023 Earnings Guidance 2023 EPS Guidance Low High Estimated EPS on a GAAP basis ~ $ 1.00 ~ $ 1.13 Estimated Non-Core Items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.16 ~ 0.16 Bankruptcy and legal costs (3) ~ 0.03 ~ 0.02 Fire Victim Trust tax benefit net
Slide 37: Exhibit C: 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2023 Earnings 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 filing, and exit financing costs. 2023 Low guidance
Slide 38: Exhibit C: 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2023 Earnings Guidance (5) “Investigation remedies” includes costs related to the settlement agreement with the Safety and Enforcement Division’s investigation into the 2020 Zogg fire, Paradise restoration and rebuild, the Wildfires OII decision different, and the loc
Slide 39: Exhibit C: 2023 Earnings Guidance
® Exhibit C: PG&E Corporation's 2023 Earnings Guidance (7) “Strategic repositioning costs” includes one-time costs related to repositioning PG&E Corporation’s and the Utility’s operating model, including their workforce, and costs associated with the potential sale of a minority interest in Pacific
Slide 40: Exhibit D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
® Exhibit D: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Year to Date, 2023 vs. 2022 Three Months Ended March 31, (in millions) 2023 2022 PG&E Corporation’s Net Income on a GAAP basis $ 572 $ 478 Income tax benefit (348) (204) Other income, net (85) (149) Interest exp
Slide 41: Exhibit E: Non-GAAP Financial Measures
® Exhibit E: Non-GAAP Financial Measures 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 financial measures. Non-GAAP core earnings is calculated as income available for common shareho