Slide 1: 2020 Third Quarter Earnings
2020 THIRD QUARTER EARNINGS October 29, 2020
Slide 2: Forward-Looking Statements
® Forward-Looking Statements This presentation contains statements regarding management’s expectations and objectives for future periods (including key factors affecting 2020 non-GAAP core earnings) as well as forecasts and estimates regarding PG&E Corporation’s and Pacific Gas and Electric Company’
Slide 3: Key Takeaways - Q3 2020
® Key Takeaways - Q3 2020 During Q3 2020, we delivered on key Wildfire Mitigation Plan elements and consistency in strong earnings growth projections, while making progress on regulatory cases. • Meeting program goals in the Wildfire Mitigation Plan Delivering on Risk Reduction • Shorter, Smaller, S
Slide 4: Wildfire Mitigation Plan (WMP) Progress
® Wildfire Mitigation Plan (WMP) Progress 2020 WMP Key Programs and Goals YTD Q3 2020 Progress (2) System 241 circuit miles hardened through System 107% stronger poles and covered conductor, Hardening Hardening (# of Line Miles) 241 mi hardened undergrounding, or elimination 257 Miles Enhanced 1,800
Slide 5: Public Safety Power Shutoff Season Highlights
® Public Safety Power Shutoff Season Highlights Smarter Using Technology-based Enhancements 2x+ more precise modeling to Improve Outcomes capabilities implemented for 2020 season Weather Forecasting Fire Spread and Consequence Modeling Smaller 56%(1) fewer average impacted customers, exceeding 33% g
Slide 6: Regulatory Progress
® Regulatory Progress Status as of Oct 2020 Expected Milestones(1) 2020 2021 GRC Proposed Decision in 2020 GRC Final Decision Expected Q4 2020 2019 Final Decision GT&S GT&S Capital Audit Scoping Proposed Decision Q4 2021 Cost of Capital Final Decision(2) TO 18 Order TO 19 Final Decision (3) TO Rate
Slide 7: 2020-2024 Earnings Overview and Assumptions
® 2020-2024 Earnings Overview and Assumptions Key Factors Affecting GAAP and Non-GAAP Core Earnings 2020 2021 2022 2023 2024 Ratebase ($B) ~$44.1 $47-$48 $50-$51 $53-$55 $57-$60 10.25% Authorized CPUC ROE across the Enterprise Drivers of Unrecoverable Interest Expense Decreases due to reduction in V
Slide 8: Substantial Capital Investments
® Substantial Capital Investments (1) Subject to Ongoing and 2019-2024 CapEx Forecast ($B) Future Recovery Requests $7.3-$8.7 Spend driven by: $7.6-$8.2 $7.4-$8.1 • Wildfire Mitigation Plan ~$7.5 $7.2-$7.8 Memorandum Account (WMPMA) $7.0 • Catastrophic Event Memorandum Account (CEMA) • Potential Oak
Slide 9: Ratebase Growth Forecast
® Ratebase Growth Forecast Weighted Average Ratebase forecast by Rate Case ($B) Potential Growth Opportunities ~8% CAGR • Additional wildfire mitigation (1, 2) on equity earning ratebase 2019- 2024 • Transportation electrification $57-$60 $53-$55 • Additional distributed generation- $50-$51 enabled
Slide 10: 2020 Factors Impacting Earnings
® 2020 Factors Impacting Earnings ~$44.1B 2020 Key 10.25% $44.5B ~$2B 10.25% $1.60-$1.63 Assumptions Equity Earning Ratebase (1) Authorized CPUC ROE Equity Earning Ratebase (1) Authorized Non-GAAP CoreCPUC ROE across the Earnings (2) EnterpriseCore Non-GAAP EPS(6) across the Enterprise (2) Key Facto
Slide 11: 2021 Factors Impacting Earnings
® 2021 Factors Impacting Earnings $47~$44.5B - $48B (1) 10.25% ~$2.1-$2.3B $0.95-$1.05 Equity Earning Ratebase Equity Earning Ratebase (1) Authorized CPUC ROE across Non-GAAP Core Earnings Non-GAAP Core EPS the Enterprise (2) Key Factors Affecting Non-GAAP Core Earnings Non-Core Items(5) ($ millions
Slide 12: 2020-2024 Earnings Growth
® 2020-2024 Earnings Growth 2020-2024 Non-GAAP Core Earnings ($B) (1) Strong Earnings Growth Post-emergence ~10% 2020 - 2024 CAGR ~8% ratebase growth driven by wildfire mitigation capital Aggressive deleveraging reduces interest expense impact ~$2B ~$2 No incremental equity needs anticipated followi
Slide 13: Q3 2020 Earnings Results
® Q3 2020 Earnings Results Q3 2020 (in millions, except per share amounts) Earnings EPS Earnings EPS PG&E Corporation’s Earnings (Loss) on a GAAP basis $ 83 $ 0.04 $ (1,518) $ (1.50) Non-core items: Bankruptcy and legal costs 139 0.06 2,592 2.56 Amortization of wildfire fund contribution 86 0.04 211
Slide 14: Q3 2020 Quarter over Quarter Comparison
® Q3 2020 Quarter over Quarter Comparison Non-GAAP Core Earnings per Share $1.20 ($0.84) $1.00 $0.80 $0.60 $1.11 $0.40 ($0.03) ($0.01) ($0.01) $0.20 $0.22 $0.00 Q3 2019 Non-GAAP Increase in shares Unrecoverable interest Timing of 2020 GRC Wildfire mitigation costs Q3 2020 Non-GAAP Core EPS outstandi
Slide 15: Appendix
[t PG&E Corporation Appendix
Slide 16: Table of Contents
® Table of Contents Appendix 1 - AB 1054 Wildfire Fund Slide 17 Appendix 2 - Illustrative Wildfire Fund Scenarios Slide 18 Appendix 3 - Supporting Clean Energy Slide 19 Appendix 4 - 2020 Share Count Guidance Slide 20 Appendix 5 - Registration Rights Agreement Slide 21 Appendix 6 - COVID-19 Impacts S
Slide 17: Appendix 1: AB 1054 Wildfire Fund
® Appendix 1: AB 1054 Wildfire Fund (1) Wildfire Fund Contribution Treatment Total Funding and Participation • Contribution year life (2) amounts expected to be amortized based on an assumed ~15- Wildfire Fund Funding Sources ($B) • Tax treatment pending private letter ruling from the IRS Additional
Slide 18: Appendix 2: Illustrative Wildfire Fund Scenarios
® Appendix 2: Illustrative Wildfire Fund Scenarios California’s Wildfire Fund application depends on the total amount of claims and the CPUC’s determination of whether utility conduct was reasonable and prudent. Claims Fund Pays PG&E Applies for CPUC Finds PG&E CPUC Finds PG&E Acted Determined: Vict
Slide 19: Appendix 3: Commitment to California's Clean Energy Future
® Appendix 3: Commitment to California's Clean Energy Future We are recommitting to California’s clean energy future by implementing and advocating for clean and equitable energy policy, investing in electrification, and preparing for the physical risks of climate change. Promoting Implementing Stat
Slide 20: Appendix 4: 2020 Share Count Guidance
® Appendix 4: 2020 Share Count Guidance Total Shares Weighted Average Shares for EPS ~ 2,120 - 2,160 0-9 137-168 137-168 137 - 168 1,984 ~ 1,250 1,012 Total Shares Weighted Average Basic and Diluted Weighted Average Basic and Diluted Shares Shares YTD 9/30/2020 Full Year 2020 1 Common Shares Outstan
Slide 21: Appendix 5: PG&E Fire Victims Trust Registration Rights Agreement
Appendix 5: PG&E Fire Victims Trust (FVT) ® Registration Rights Agreement Key Term Description “Resale” Registration • PG&E filed a registration statement with SEC to permit Fire Victim Trust (FVT) to sell its shares on a registered basis Statement • Registration statement maintained during term of
Slide 22: Appendix 6: COVID-19 Impacts
® Appendix 6: COVID-19 Impacts Overall, PG&E’s key wildfire mitigation and safety work execution has not been impacted by COVID-19. California's constructive regulatory framework minimizes potential earnings impacts from reduced load and higher uncollectibles. Key Areas Potential Business Impact Cur
Slide 23: Appendix 7: Cap Ex and Ratebase Assumptions
® Appendix 7: Cap Ex and Ratebase Assumptions 2020 CapEx and Ratebase Assumptions ($ billions) CapEx Ratebase 2020 GRC Settlement $4.4 $30.5 2019 GT&S Decision 0.7 5.0 2019 TO Plan under Formula Rates 1.5 8.6 AB 1054 Spend 0.9 — Total CapEx ~ $7.5 ~ $44.1 See the Forward-Looking Statements for facto
Slide 24: Appendix 8: 2020 CPUC General Rate Case Overview
® APPENDIX 8: 2020 CPUC General Rate Case Overview • On December 20, 2019, PG&E filed a 2020 GRC settlement agreement together with the Public Advocates Office of the CPUC, The Utility Reform Network, Coalition of California Utility Employees, the Office of the Safety Advocate of the CPUC, and four
Slide 25: Appendix 9: FERC Transmission Owner Rate Cases
® APPENDIX 9: FERC Transmission Owner Rate Cases TO18 (2017 Revenues) Revenues) • On July 29, 2016, PG&E filed TO18 with FERC requesting a ~$1.7B revenue requirement with an ROE of 10.90% (inclusive of 50 basis point adder) On July 29, 2016, PG&E filed TO18 with FERC requesting a ~$1.7B revenue requ
Slide 26: Appendix 10: Expected Timelines of Selected Regulatory Cases
® APPENDIX 10: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2020 General Rate Case (Phase I) A.18-11-009 Dec 13, 2018 – Application filed Mar 8, 2019 – Scoping Memo Mar 25, 2019 – PG&E's Revised Testimony on Real Estate served Jun 28, 2019 – PAO testimony Jul 26
Slide 27: Appendix 10: Expected Timelines of Selected Regulatory Cases
® APPENDIX 10: 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 – FERC settlement conference
Slide 28: Appendix 10: Expected Timelines of Selected Regulatory Cases
® APPENDIX 10: Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Wildfire Mitigation and Catastrophic A.20-02-003 Feb 7, 2020 - Application Filed Events Interim Rate Relief Application Apr 29, 2020- Opening Briefs May 8, 2020 - Reply Briefs Oct 13, 2020 - Proposed De
Slide 29: Appendix 11: Supplemental Earnings Materials
® Appendix 11: Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Exhibit A: Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Slides 30-34 Non-GAAP Core Earnings Key Drivers of PG&E Corporation's Non-G
Slide 30: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Third Quarter, 2020 vs. 2019 (in millions, except per share amounts) Three Months Ended Nine Mont
Slide 31: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Third Quarter, 2020 vs. 2019 (in millions, except per share amounts) (2) PG&E Corporation and the
Slide 32: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Third Quarter, 2020 vs. 2019 (in millions, except per share amounts) (4) The Utility recorded cos
Slide 33: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Third Quarter, 2020 vs. 2019 (in millions, except per share amounts) (6) The Utility incurred $73
Slide 34: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Third Quarter, 2020 vs. 2019 (in millions, except per share amounts) (8) The Utility incurred cos
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") Third Quarter, 2020 vs. 2019 (in millions, except per share amounts) Third Quarter 2020 vs. 2019 Year to Date 2020 vs. 2019 Earnings per Earnings per Earnings Common Share Earnings Common Share (Diluted) (
Slide 36: Exhibit C: Operational Performance Metrics
® Exhibit C: Operational Performance Metrics 2020 Performance Results YTD Actual 2020 Target Meets YTD Target Customer Welfare - prioritizing public and employee safety Electric Operations Reportable Fire Ignitions 108 101 Electric Asset Failure 1,426 2,166 P Distribution Circuit Sectionalization 8/
Slide 37: Definitions of 2020 Operational Performance Metrics from Exhibit C
® Definitions of 2020 Operational Performance Metrics from Exhibit C Customer Welfare – prioritizing public and employee safety Public and employee safety are measured in five areas: Electric Operations, Gas Operations, Generation, Reliability, and Workforce Safety. The safety of the Utility’s elect
Slide 38: Definitions of 2020 Operational Performance Metrics from Exhibit C
® Definitions of 2020 Operational Performance Metrics from Exhibit C Customer Welfare – prioritizing public and employee safety (continued) The safety of the Utility’s Reliability is represented by: • Gas Customer Emergency Response – Measures the average response time for immediate response orders
Slide 39: Exhibit D: Sales and Sources Summary
® Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary Third Quarter, 2020 vs. 2019 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Sales from Energy Deliveries (in millions kWh) 23,025 22,761 59,196 59,200 Total Electric Customers at September 30
Slide 40: Exhibit E: 2020 and 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance 2020 2021 EPS Guidance Low High Low High Estimated Earnings (Loss) on a GAAP basis $ (1.06) $ (1.00) $ 0.14 $ 0.26 (1) Estimated Non-Core Items: Bankruptcy and legal costs (2) ~ 2.15 ~ 2.11 ~ 0.04 ~ 0.03 (3) Investigation remedies and d
Slide 41: Exhibit E: 2020 and 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) “Investigation remedies and delayed cost recovery" includes costs related to the Wildfire OII Decision Different, Paradise restoration and rebuild, and Locate and Mark OI
Slide 42: Exhibit E: 2020 and 2021 Earnings Guidance
® Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (6) “Net securitization inception charge" represents a charge upon inception of securitization and is the result of an undiscounted regulatory liability associated with the revenue credits funded by the Net Operating Loss (NOL) monetiza
Slide 43: Exhibit F: General Earnings Sensitivities for 2020 and 2021
® Exhibit F: General Earnings Sensitivities for 2020 and 2021 Pacific Gas & Electric Company Estimated 2020 Non- Variable Description of Change 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 +/-$23
Slide 44: 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 core earnings” and “non-GAAP core EPS” in order to provide a meas