Slide 1: 2019 Full Year and Fourth Quarter Earnings
2019 FULL YEAR AND FOURTH QUARTER EARNINGS February 18, 2020
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 PG&E Corporation’s and Pacific Gas and Electric Company’s (the “Utility”) expected participation in the AB 1054 Wildfi
Slide 3: Resolution of Key Issues
® Resolution of Key Issues Path to timely Chapter 11 exit through the fair settlement of wildfire claims and pending regulatory proceedings, progress with legislative initiatives, and establishment of a multi-year investment and rate roadmap. Q1 Q2 POR OII Testimony and Evidentiary Hearings, and POR
Slide 4: AB 1054 Wildfire Fund
® AB 1054 Wildfire Fund (1) Wildfire Fund Contribution Treatment $21B Wildfire Fund • Contribution amounts expected to be amortized based on an assumed ~10-year life (2) • Tax treatment pending private letter ruling from the IRS $4.8B PG&E Pre-Emergence Wildfire Liabilities • For fires occurring aft
Slide 5: Wildfire Mitigation Overview: 2019 Progress
® Wildfire Mitigation Overview In 2019, PG&E succeeded in meeting or exceeding its goals for core elements of its Wildfire Mitigation Plan, resulting in a ~25% reduction in ignitions(1) Vegetation Enhanced Situational Public Safety System Hardening Management Inspections Awareness Power Shutoff 114%
Slide 6: Q4 2019 Earnings Results
® Q4 2019 Earnings Results Q4 2019 (in millions, except per share amounts) Earnings EPS Earnings EPS PG&E Corporation’s Loss on a GAAP basis $ (3,617) $ (6.84) $ (7,656) $ (14.50) Non-core items: Wildfire-related costs 3,847 7.27 8,761 16.59 Electric asset inspection costs 120 0.23 557 1.05 Locate a
Slide 7: Q4 2019 Quarter over Quarter Comparison
® Q4 2019 Quarter over Quarter Comparison Non-GAAP Core Earnings per Share $1.00 ($0.18) $0.80 $0.10 ($0.13) $0.60 $0.17 ($0.06) ($0.01) ($0.01) $0.40 $0.80 $0.68 $0.20 $0.00 Q4 2018 Non- Short-term Interest Vegetation Timing of Increase in Liability Growth in rate Q4 2019 Non- GAAP Core incentive a
Slide 8: Appendix
[t PG&E Corporation Appendix
Slide 9: Table of Contents
® Table of Contents Appendix 1 - Supplemental Earnings Materials Slides 10-25 Appendix 2 - Overview of Regulatory Cases Slides 26-28 9
Slide 10: Appendix – Supplemental Earnings Materials
® Appendix 1 – Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Exhibit A: Common Shareholders in Accordance with Generally Accepted Accounting Principles Slides 11-14 ("GAAP") to Non-GAAP Core Earnings Key Drivers of PG&E Corporation'
Slide 11: Exhibit A: Reconciliation of Earnings to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Fourth Quarter and Year to Date, 2019 vs. 2018 (in millions, except per share amounts) Thr
Slide 12: Exhibit A: Reconciliation of Earnings to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Fourth Quarter and Year to Date, 2019 vs. 2018 (in millions, except per share amounts) (2)
Slide 13: Exhibit A: Reconciliation of Earnings to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Fourth Quarter and Year to Date, 2019 vs. 2018 (in millions, except per share amounts) (3)
Slide 14: Exhibit A: Reconciliation of Earnings to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings (Loss) Attributable to Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings Fourth Quarter and Year to Date, 2019 vs. 2018 (in millions, except per share amounts) (8)
Slide 15: Exhibit B: Key Drivers of Non-GAAP Core Earnings per Share
® Exhibit B: Key Drivers of PG&E Corporation's Non-GAAP Core Earnings per Common Share ("EPS") Fourth Quarter and Year to Date, 2019 vs. 2018 (in millions, except per share amounts) Fourth Quarter 2019 vs. 2018 Year Ended 2019 vs. 2018 Earnings per Earnings per Earnings Common Share Earnings Common
Slide 16: Exhibit C: Operational Performance Metrics
® Exhibit C: Operational Performance Metrics 2019 Performance Results 2019 Actual 2019 Target Meets Target Safety Nuclear Operations Safety 97.5 93.7 P Diablo Canyon Power Plant (DCPP) Reliability and Safety Electric Operations Safety 1.3 1.0 P Public Safety Index Gas and Electric Operations Safety
Slide 17: 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
Slide 18: Exhibit D: Sales and Sources Summary
® Exhibit D: Pacific Gas & Electric Company Sales and Sources Summary Fourth Quarter and Year to Date, 2019 vs. 2018 Three Months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Sales from Energy Deliveries (in millions kWh) 18,870 19,198 78,070 79,777 Total Electric Customers at Dece
Slide 19: Exhibit E: Use of Non-GAAP Financial Measures
® Exhibit E: 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
Slide 20: Exhibit F: GAAP Net Income to Adjusted EBITDA Reconciliation
® Exhibit F: GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation Fourth Quarter and Year to Date, 2019 vs. 2018 Three Months Ended Year Ended December 31, December 31, (in millions) 2019 2018 2019 2018 PG&E Corporation’s Net Loss on a GAAP basis $ (3,613) $ (6,869) $ (
Slide 21: Exhibit G: 2019 Financial Results Summary
® Exhibit G: 2019 Financial Results Summary Financial Results ($ billions) 2019 Actuals Earnings Loss on a GAAP basis $ (7.7) Non-core items $ 9.8 Non-GAAP core earnings $ 2.1 Capital Expenditures General Rate Case $ 4.6 Gas Transmission and Storage $ 0.8 Transmission Owner $ 1.5 Total $ 7.0 Rate Ba
Slide 22: 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 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
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 Safety Culture and Governance Order I.15-08-019 Dec 21, 2018 – President Picker issued ruling on next phase of the Safety Culture OII Instituting Investigation (Phase 3) J
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 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, 20
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 Wildfire Mitigation Plan Order Instituting Apr 7, 2020 – Deadline for members of the public to submit comments on utility plans Rulemaking (continued) Apr 16, 2020 – Deadl
Slide 26: 2020 CPUC General Rate Case
® APPENDIX 2 - OVERVIEW OF KEY REGULATORY CASES 2020 CPUC General Rate Case • 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 Advoca
Slide 27: FERC Transmission Owner Rate Cases
® APPENDIX 2 - OVERVIEW OF KEY REGULATORY CASES FERC Transmission Owner Rate Cases TO18 (2017 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) • PG&E cannot predict when a final decision will be
Slide 28: 2020 Cost of Capital Filing
® APPENDIX 2 - OVERVIEW OF KEY REGULATORY CASES 2020 Cost of Capital Filing • On December 19, 2019, the CPUC issued a Final Decision retaining the existing ROEs for all three California investor-owned utilities. The Final Decision maintained PG&E’s common equity percentage at 52% and reduced the pre