Slide 1: Third Quarter Earnings Call
THIRD QUARTER EARNINGS CALL November 4, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This slide presentation contains forecasts and estimates of PG&E Corporation’s 2016 financial results, 2016 equity issuances and general earnings sensitivities. These forecasts and estimates are based on certain assumptions, including but not limited to those relating to P
Slide 3: Q3 2016 Earnings Results
Q3 2016 Earnings Results Q3 2016 Earnings Earnings EPS EPS (millions) (millions) Earnings from Operations $ 471 $ 0.94 $ 1,209 $ 2.42 Items Impacting Comparability Pipeline related expenses (18) (0.04) (47) (0.10) Legal and regulatory related expenses (14) (0.03) (32) (0.06) Fines and penalties (42)
Slide 4: Q3 2016: Quarter over Quarter Comparison
Q3 2016: Quarter over Quarter Comparison Earnings per Share from Operations $1.20 $0.05 $0.05 $1.00 $0.11 ($0.04) ($0.03) ($0.04) $0.80 $0.60 $0.94 $0.40 $0.84 $0.20 $0.00 Q3 2015 EPS Timing of 2015 Growth in rate Regulatory and Timing of taxes Increase in Miscellaneous Q3 2016 EPS from Operations G
Slide 5: 2016 Earnings Per Share Guidance
2016 Earnings Per Share Guidance Low High Estimated EPS on an Earnings from Operations Basis $ 3.65 $ 3.85 Estimated Items Impacting Comparability Pipeline related expenses (0.18) (0.12) Legal and regulatory related expenses ~ (0.09) ~ (0.09) Fines and penalties ~ (0.56) ~ (0.56) Butte fire related
Slide 6: Assumptions for 2016
Assumptions for 2016 Capital Expenditures Authorized Ratebase (weighted average) ($ millions) ($ billions) 2016 2016 Electric Distribution 2,000 Electric Distribution 13.8 Electric Transmission 1,200 Electric Transmission 5.9 Gas Transmission (1) 700 Gas Transmission 2.8 Gas Distribution 1,100 Gas D
Slide 7: 2016 Items Impacting Comparability
2016 Items Impacting Comparability ($ millions, pre-tax) 2016 Pipeline related expenses (1) (100 - 150) Legal and regulatory related expenses ~ (75) Fines and penalties ~ (449) Butte fire related costs, net of insurance ~ (186) GT&S capital disallowance (190) GT&S revenue timing impact ~ 350 2016 It
Slide 8: Appendices
[t PG&E Corporation Appendices
Slide 9: Appendix 1 – Guidance
Appendix 1 – Guidance Key Assumptions: 2015 GT&S Case Slide 10 CPUC Penalty Decision in Gas Transmission Pipeline Investigations Slide 11 9
Slide 10: Key Assumptions: 2015 GT&S Case
APPENDIX 1 – GUIDANCE Key Assumptions: 2015 GT&S Case Revenue Recognition • Final revenues uncertain pending final Phase 2 decision; billing began August 1, 2016 • Undercollected revenues for revenue requirement increase in 2015 and 7 months of 2016 will be amortized over 36 months • Timing for reve
Slide 11: CPUC Penalty Decision in Gas Transmission Pipeline Investigations
APPENDIX 1 – GUIDANCE CPUC Penalty Decision in Gas Transmission Pipeline Investigations Cumulative Estimated Charges ($ millions) Q3 2016 Future Total September Periods 30, 2016 Fine paid to the state $ - $ 300 $ - $ 300 Customer bill credit paid - 400 - 400 Charge for disallowed capital (1) 286 692
Slide 12: Appendix 2 – Supplemental Earnings Materials
Appendix 2 – Supplemental Earnings Materials Exhibit A: Reconciliation of PG&E Corporation’s Earnings from Operations to Slides 13-14 Consolidated Income Available for Common Shareholders in Accordance with GAAP Exhibit B: Key Drivers of PG&E Corporation’s Earnings per Common Share Slide 15 from Ope
Slide 13: Exhibit A: Reconciliation of Earnings from Operations to GAAP
Exhibit A: Reconciliation of PG&E Corporation’s Earnings from Operations to Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) Page 1 of 2 Third Quarter, 2016 vs. 2015 Three Months Ended S eptember 30, Nine Months Ended S eptemb
Slide 14: Exhibit A: Reconciliation of Earnings from Operations to GAAP (Page 2)
Exhibit A: Reconciliation of PG&E Corporation’s Earnings from Operations to Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) Page 2 of 2 Three Months Ended Nine Months Ended (in millions, pre-tax) S eptember 30, 2016 S eptembe
Slide 15: Exhibit B: Key Drivers of Earnings per Common Share
Exhibit B: Key Drivers of PG&E Corporation’s Earnings per Common Share (“EPS”) from Operations Third Quarter and YTD, 2016 vs. 2015 ($/Share, Diluted) Third Quarter 2015 EPS from Operations (1) $ 0.84 Timing of 2015 GT&S revenue (2) 0.11 Growth in rate base earnings 0.05 Regulatory and legal matters
Slide 16: Exhibit C: Operational Performance Metrics
Exhibit C: Operational Performance Metrics 2016 Performance Results 2016 Year to Date Q3 YTD EOY Meets YTD Actual Target Target (1) Safety (includes both public and employee safety metrics) Nuclear Operations Safety Unit 1 Performance Indicator 100.0 98.7 P Unit 2 Performance Indicator 100.0 98.7 P
Slide 17: Definitions of 2016 Operational Performance Metrics from Exhibit C
Definitions of 2016 Operational Performance Metrics from Exhibit C Safety Public and employee safety are measured in four areas: (1) Nuclear Operations Safety, (2) Gas Operations Safety, (3) Electric Operations Safety, and (4) Employee Safety. 1. The safety of the Utility’s nuclear power operations,
Slide 18: Exhibit D: Sales and Sources Summary
Exhibit D: Pacific Gas and Electric Company Sales and Sources Summary Third Quarter and Year to Date, 2016 vs. 2015 Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Sales from Energy Deliveries (in millions kWh) 24,067 24,804 63,486 64,845 Total Electric Customers
Slide 19: Exhibit E: 2016 Earnings per Share Guidance
Exhibit E: PG&E Corporation’s 2016 Earnings per Share Guidance Page 1 of 2 2016 EPS Guidance Low High Estimated EPS on an Earnings from Operations Basis (1) $ 3.65 $ 3.85 Estimated Items Impacting Comparability: (2) Pipeline related expenses (3) (0.18) (0.12) Legal and regulatory related expenses (4
Slide 20: Exhibit E: 2016 Earnings per Share Guidance (Page 2)
Exhibit E: PG&E Corporation’s 2016 Earnings per Share Guidance Page 2 of 2 (6) “Butte fire related costs, net of insurance” includes charges of $446 million (before the tax impact of $182 million) recorded for the nine months ended September 30, 2016 related to estimated third-party claims and Utili
Slide 21: Exhibit F: 2016 General Earnings Sensitivities
Exhibit F: 2016 General Earnings Sensitivities PG&E Corporation and Pacific Gas and Electric Company Variable Description of Change Estimated 2016 Earnings Impact Ratebase +/- $100 million change in allowed ratebase +/- $5 million Return on equity (ROE) +/- 0.1% change in allowed ROE +/- $17 million
Slide 22: 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 “earnings from operations” in order to provide a measure that allows investor
Slide 23: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2015 Gas Transmission A.13-12-012 Dec 19, 2013 – Application filed and Storage Rate Case Jan 16, 2014 – PG&E workshop Mar 7, 2014 – Supplemental testimony served Mar 12, 201
Slide 24: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2015 Gas Transmission Aug 1, 2016 – Parties filed Application for Rehearing of Phase I GT&S Decision and Storage Rate Case (cont.) Aug 2, 2016 – Reply briefs on allocation o
Slide 25: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Ex Parte Order Instituting Investigation and I.15-11-015 Nov 23, 2015 – OII issued Order to Show Cause Dec 3, 2015 – City of San Bruno, City of San Carlos and TURN comments
Slide 26: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2015 Electric Distribution Resources Plan A.15-07-006, Aug 13, 2014 – Commission issues OIR directing utilities to file Electric Distribution Resources Plans (DRP) R.14-08-0
Slide 27: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates Order Instituting Rulemaking on the R.14-05-013 May 21, 2014 – Commission issues OIR for electric citation program by Jan 1, 2015 complying with SB 291 Commission’s Natural
Slide 28: Exhibit H: Expected Timelines of Selected Regulatory Cases
Exhibit H: Pacific Gas and Electric Company Expected Timelines of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2017 Integrated Resource Plan / Long Term R.16-02-007 Feb 11, 2016 – CPUC opens Order Instituting Rulemaking Procurement Plan Mar 14, 2016 – Comments due on OIR May 26, 2016