Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Investor Presentation (September 2025)
25 slides from Pacific Gas & Electric's investor presentation, Sep 15, 2025
Slide 1: California Legislative Update and FAQs
California Legislative Update and FAQs Delivering For Customers AND Investors September 15, 2025 1
Slide 2: California Legislature Takes Further Action On Wildfire Risk
California Legislature Takes Further Action On Wildfire Risk… Wildfire Fund Continuation Account: Decisive step forward following January 2025 New Features fires and building on AB 1054 foundation Creates new Wildfire Fund Continuation Flexible Improved Account providing $18B for future wildfires1 U
Slide 3: Wildfire Fund Continuation Account
Wildfire Fund Continuation Account… > $21.0 B $18.0 B Utility Utility Upfront Funding Contingent Funding $7.5 2019-2020 $3.9 * Over 5 years only if needed PG&E $4.8B PG&E $373M per year Utility Utility Annual Funding $3.0 Annual Funding 2019-2028 $5.1 2029-2045 $300M per year $300M per year PG&E $19
Slide 4: Ensuring Existing Protections Remain In Place
Ensuring Existing Protections Remain In Place… Protections Offered Under AB 1054 & SB 254 Physical Risk Reduction Drives Cost Recovery Liquidity Reimbursement Financial Protections Unchanged Bolstered Improved Improved prudency standard1 Available when needed Disallowance cap retained Physical Risk
Slide 5: Planning For Wide-Ranging Wildfire Policy Reform
Planning For Wide-Ranging Wildfire Policy Reform… The report shall include specific recommendations, including, but not limited to, on all of the following: Insurance and Physical Mitigation and New Models and Liability Reform Community Impacts Customer Impact ▪ Accessibility and affordability of ▪
Slide 6: Fund Mechanics Largely Unchanged
Fund Mechanics Largely Unchanged… 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 claim
Slide 7: Appendix: Frequently Asked Questions
Appendix 1 Frequently Asked Questions 7
Slide 8: FAQs: SB 254 Continuation Account
FAQs: SB 254 Continuation Account What will be the effective date • The date the governor signs the bill of SB 254? • California’s three large investor-owned utilities, Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and San Diego Which entities are eligible to Gas and Ele
Slide 9: FAQs: SB 254 Continuation Account
FAQs: SB 254 Continuation Account • The Continuation Account is only available for wildfires that ignite on or after the effective date of SB 254 What qualifies as a covered wildfire under the Continuation Account? • Dollars in the Continuation Account cannot be allocated to address liabilities from
Slide 10: FAQs: SB 254 Continuation Account
FAQs: SB 254 Continuation Account • $9B will come from a 10-year extension of the current non-bypassable customer charge (NBC); collection begins in 2036, when the existing NBC ends, and runs through 2045; AND • $9B will come from the three utilities as follows: • $5.1B from 17-year extension of exi
Slide 11: FAQs: SB 254 Continuation Account
FAQs: SB 254 Continuation Account • If the administrator determines that additional contributions from the utilities are needed to enable the Continuation Account to fund the timely payment of eligible claims due to the likelihood of exhaustion of revenues in the account, including the proceeds from
Slide 12: FAQs: SB 254 Eligible Claims
FAQs: SB 254 Eligible Claims • No change Does SB 254 change the definition • Claims for 3rd party damages resulting from covered wildfires exceeding of an “eligible claim?” $1B, in the aggregate, in any calendar year; including, but not limited to, economic damages, fire suppression, emotional distr
Slide 13: FAQs: SB 254 Disallowance Cap
FAQs: SB 254 Disallowance Cap • The CPUC makes the prudency determination in an after-the-fact wildfire cost recovery proceeding • The review occurs when directed by the administrator or when a participating utility has resolved all or substantially all claims associated with a covered wildfire • If
Slide 14: FAQs: SB 254 Phase 2
FAQs: SB 254 Phase 2 • Yes, the Wildfire Fund administrator must submit a report to the Legislature and Governor on or before April 1, 2026 Does Phase 2 have a defined timeline and deliverable? • The report shall evaluate and set forth recommendations on new models or approaches that mitigate damage
Slide 15: FAQs: SB 254 Capital Securitization
FAQs: SB 254 Capital Securitization • $6B on fire risk mitigation capital expenditures How much capex must be securitized under SB 254? • Note that SB 254 reference to $5B refers to previously completed capital securitization from AB 1054 • Applies to capital expenditures approved by the CPUC on or
Slide 16: 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 How is the first $1B of wildfire exposure covered? • PG&E has proposed to continue this structure in its 2027 General Rat
Slide 17: FAQs: California Wildfire Fund – Scope & Coverage
FAQs: California Wildfire Fund – Scope & Coverage Which entities have access • California’s three investor-owned utilities, PG&E, SCE, and SDG&E (“participating to the original Wildfire utilities” or “utilities”) Fund? • Applies to a “covered wildfire,” defined as 1) fires which ignited on or after
Slide 18: FAQs: California Wildfire Fund – Capacity & Funding
FAQs: California Wildfire Fund – Capacity & Funding • Net asset balance of $12.9B as of June 30, 2025 per its financial report How much is in the Wildfire Fund (published July 24, 2025) currently? • See www.cawildfirefund.com for further information and meeting materials of the California Catastroph
Slide 19: FAQs: California Wildfire Fund – Mechanics & Payments
FAQs: California Wildfire Fund – Mechanics & Payments • No; participating utilities may have access to liquidity even if they do not have a valid safety certificate at the time of the ignition Is an annual safety certificate required to access the Funds? • Safety certification is required for 1) the
Slide 20: 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 21: 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 22: FAQs: CPUC Wildfire Cost Reasonableness Review
FAQs: CPUC Wildfire Cost Reasonableness Review • The 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 utility’s conduct is presumed prudent unless
Slide 23: FAQs: Fund Reimbursement & Utility Disallowance Cap
FAQs: Fund Reimbursement & Utility Dissallowance Cap • Cap does not apply if: • the administrator determines that the utility’s actions or inactions Under what circumstances that resulted in the applicable wildfire constituted “conscious or willful disregard of the rights and safety of others” would
Slide 24: Appendix: Presentation Endnotes
Appendix 2 Presentation Endnotes 24
Slide 25: Appendix 2: Presentation Endnotes
Appendix 2: Presentation Endnotes Slide titles are hyperlinks Slide 2: California Legislature Takes Further Action On Wildfire Risk 1. The Utility’s ability to recover wildfire-related costs depends on the Wildfire Fund or the Continuation Account having sufficient remaining funds. Such funds could