Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Investor Presentation (March 2025)
13 slides from Pacific Gas & Electric's investor presentation, Mar 4, 2025
Slide 1: Investor Meetings March 2025: Delivering For Customers and Investors
Investor Meetings March 2025 Delivering For Customers AND Investors 1
Slide 2: Existing Construct In California Offers Sector-Leading Financial Protection
Existing Construct In California Offers Sector-Leading Financial Protection Physical Risk Protections Offered Under AB 1054 Reduction Drives Financial Protections Cost Recovery Liquidity Reimbursement Improved prudency standard Available when needed Maximum liability capped Physical Risk 1 ▪ Utility
Slide 3: AB 1054 Wildfire Fund Mechanics
AB 1054 Wildfire Fund Mechanics Claims filed against Covered Utility Customer funded self-insurance Covered Utility seeks payment from the Fund for eligible claims >$1B covers first $1B of claims Filing after “substantially all” Covered Utility files cost recovery application at the CPUC for claims
Slide 4: Why Did California Establish a State Wildfire Fund?
Why Did California Establish a State Wildfire Fund? Provide a ready source of compensation for fire victims and ensure they receive proper compensation expeditiously Reduce the costs to ratepayers of addressing utility-caused catastrophic wildfires Ensure electrical corporations have ready access to
Slide 5: What Are PG&E's Key Legislative Priorities For AB 1054?
What Are PG&E’s Key Legislative Priorities For AB 1054? Build upon the original principles of AB 1054, promoting investments which effectively mitigate wildfire risk and support financial health of the state’s utilities to the benefit of customers Provide the appropriate assurances for investors giv
Slide 6: FAQs: PG&E Exposure to Future Wildfire Claims
FAQs: PG&E Exposure to Future Wildfire Claims • PG&E maintains “customer-funded self-insurance” using a captive insurance vehicle to cover the first $1B of calendar year exposure; this How is the first $1B of replaced the prior practice of using customer dollars to purchase commercial insurance cove
Slide 7: FAQs: California Wildfire Fund – Scope & Coverage
FAQs: California Wildfire Fund – Scope & Coverage • California’s three investor-owned utilities, Pacific Gas and Electric Company, Which entities have access Southern California Edison, and San Diego Gas & Electric (“participating utilities”) to the Fund? • Note that California’s municipal utilities
Slide 8: FAQs: California Wildfire Fund – Capacity & Funding
FAQs: California Wildfire Fund – Capacity & Funding • The Fund had an asset balance of $12.9B as of December 31, 2024 per How much is in the Fund its most recent financial report (published February 13, 2025) currently? • See www.cawildfirefund.com for further information and meeting materials of th
Slide 9: FAQs: California Wildfire Fund – Mechanics & Payments
FAQs: California Wildfire Fund – Mechanics & Payments • No; participating utilities may access Fund liquidity even if they did not have a valid safety certificate at the time of the ignition Is an annual safety certificate required to access the Fund? • Safety certification is required for 1) the pr
Slide 10: FAQs: Prudency Standard – Pre & Post AB 1054
FAQs: Prudency Standard – Pre & Post AB 1054 • Utilities have historically been held to the general standard of “reasonableness based upon the facts that are known or should have been known at the time” • There was significant variation in how CPUC precedent applied this reasonableness standard, esp
Slide 11: FAQs: Enhanced Prudency – AB 1054 Statutory Language
FAQs: Enhanced Prudency – AB 1054 Statutory Language • Section 451.1(b): Costs and expenses arising from a covered wildfire are just and reasonable if the conduct of the electrical corporation related to the ignition was consistent with actions that a reasonable utility would have undertaken in good
Slide 12: FAQs: CPUC Wildfire Cost Reasonableness Review
FAQs: CPUC Wildfire Cost Reasonableness Review • The California Public Utilities Commission (CPUC) makes the prudency determination in an after-the-fact wildfire cost recovery proceeding Who determines after-the-fact • With a valid safety certificate at the time of the ignition, a participating util
Slide 13: FAQs: Fund Reimbursement & Utility Liability Cap
FAQs: Fund Reimbursement & Utility Liability Cap • If the CPUC finds utility conduct was not reasonable (i.e. imprudent), it can require reimbursement of Wildfire Fund subject to a 3-year rolling cap What is the cap on utility • Reimbursement cap is defined as 20% of the utility’s T&D equity rate sh