Slide 1: 2019 Second Quarter Earnings
2019 SECOND QUARTER EARNINGS August 9, 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 2019 Wildfire Safe
Slide 3: 2019 Wildfire Safety Plan Progress
2019 Wildfire Safety Plan Progress (1) (2) 2019 Forecast Spend YTD Spend 5-Year Forecast Spend ~$1.2B Expense ~$700M Expense ~$3.2B Expense ~$1.3B Capital (3) ~$300M Capital ~$5.0B Capital (3) Vegetation Management Enhanced Inspections System Hardening and Resiliency Enhanced vegetation management T
Slide 4: Q2 2019 Earnings Results
Q2 2019 Earnings Results Q2 YTD 2019 ($ in millions, except per share amounts) Earnings EPS Earnings EPS Loss on a GAAP basis $ (2,553) $ (4.83) $ (2,420) $ (4.58) Items Impacting Comparability 2017 Northern California wildfire-related costs 1,445 2.73 1,470 2.78 2018 Camp fire-related costs 1,433 2
Slide 5: Q2 2019: Quarter over Quarter Comparison
Q2 2019: Quarter over Quarter Comparison Non-GAAP Earnings per Share from Operations $1.40 $1.20 ($0.05) ($0.03) $0.07 ($0.01) ($0.01) ($0.03) $1.00 $0.80 $0.60 $1.16 $1.10 $0.40 $0.20 $0.00 Q2 2018 Resolution of 2018 Vegetation Timing of Taxes Liability Insurance Increase in Shares Growth in Rate Q
Slide 6: 2019 Assumptions
2019 Assumptions Capital Expenditures Key Factors Affecting ($ 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) 2,190 - 2,240 2017 Northern California wildfire-related costs (2) 2,050 - 2,090 Electric asset inspection costs (3) 600 - 900 Chapter 11-related costs (4) ~360 - ~430 Estimated 2019 Items Impacting Com
Slide 8: Cap Ex Forecast
Cap Ex Forecast 2018-2023 Capital Expenditures (1) $7.1B ~$0.1B ~$0.2B ~$7B $6.6B ~$1.0B ~$5.7B CWSP (3) $~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 ~$5.7B to ~$
Slide 9: Expected Ratebase Growth
Expected Ratebase Growth 2018-2023 Weighted Average Ratebase (1) ~7 – 8.5% CAGR ~$52.0-56.0B ~$49.5-52.5B ~$47.0-49.0B ~$44.5-45.5B ~$40.5B $36.8B (4) (3) 2018 2019 2020 2021 2022 2023 General Rate Case (2) Gas Transmission & Storage Electric Transmission Owner Range Changes from prior quarter noted
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 13-28 Appendix 2 – Overview of Regulatory Cases Slides 29-32 12
Slide 13: Appendix 1 – Supplemental Earnings Materials
Appendix 1 – Supplemental Earnings Materials Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Loss Attributable to Common Slides 14-16 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 Loss to Non-GAAP Earnings
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Loss Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations Second Quarter, 2019 vs. 2018 (in millions, except per share amounts) Three Months Ended Six
Slide 15: Exhibit A: Reconciliation of Consolidated Income (Loss) (continued)
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income (Loss) Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations Second Quarter, 2019 vs. 2018 (in millions, except per share amounts) (3) The Utility
Slide 16: Exhibit A: Reconciliation of Consolidated Income (Loss) (continued)
Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income (Loss) Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Non-GAAP Earnings from Operations (6) The Utility incurred costs of $12 million (before the tax impact of $3 million) a
Slide 17: 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 Second Quarter, 2019 vs. 2018 Second Quarter 2019 vs. 2018 YTD 2019 vs. 2018 (in millions, except per share amounts) Earnings per Earnings per Common Common Share Share Earnings (Diluted) Earnings
Slide 18: Exhibit C: Operational Performance Metrics
Exhibit C: Operational Performance Metrics Meets YTD 2019 Performance Results YTD 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 0.6 1.0 Gas and Electric Operations Safe
Slide 19: Definitions of 2019 Operational Performance Metrics
Definitions of 2019 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 20: Exhibit D: Sales and Sources Summary
Exhibit D: Pacific Gas and Electric Company Sales and Sources Summary Second Quarter, 2019 vs. 2018 Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Sales from Energy Deliveries (in millions kWh) 18,004 18,705 36,439 37,525 Total Electric Customers at June 30 — — 5,439,578 5
Slide 21: 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 Estimated Items Impacting Comparability: (1) 2017 Northern California wildfire-related costs (2) $ 1,505 $ 1,476 2018 Camp fire-related costs (3) 1,613 1,577 Electric
Slide 22: Exhibit E: 2019 Items Impacting Comparability Guidance (continued)
Exhibit E: PG&E Corporation’s 2019 Items Impacting Comparability (“IIC”) Guidance (4) “Electric asset inspection costs” represents incremental operating expense related to enhanced and accelerated inspections of electric transmission and distribution assets, and certain resulting repairs that are no
Slide 23: Exhibit F: General Earnings Sensitivities for 2019
Exhibit F: General Earnings Sensitivities for 2019 PG&E Corporation and Pacific Gas and Electric Company Estimated 2019 Earnings Variable Description of Change Impact Rate base +/- $100 million change in allowed rate base +/- $5 million Return on equity (ROE) +/- 0.1% change in allowed ROE +/- $19 m
Slide 24: 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 ord
Slide 25: Exhibit H: GAAP Net Loss to Non-GAAP Adjusted EBITDA Reconciliation
Exhibit H: GAAP Net Loss to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation and Pacific Gas and Electric Company Second Quarter, 2019 vs. 2018 Three Months Ended Six Months Ended June June 30, 30, (in millions) 2019 2018 2019 2018 PG&E Corporation’s Net Loss on a GAAP basis $ (2,549) $ (980
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 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 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 Locate and Mark OII I.18-12-007 Dec 13, 2018 – OII issued Jan 14, 2019 – PG&E submitted its 30 Day Report Mar 14, 2019 – PG&E submitted its 90 Day Report Mar 22, 2019 – SED
Slide 28: 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 filed Nov 30, 2018 – FERC accepted TO20 filing and set interim rates effective May 1, 2019 Dec 14, 2018
Slide 29: 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 30: 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 31: FERC Transmission Owner Rate Cases
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 Cases 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% • We cannot predict when a final d
Slide 32: 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, including a request for a 16% rate of return on equity, which would result in a $1.2 billion increase in its revenue requ