Slide 1: 2022 First Quarter Earnings
2022 FIRST QUARTER EARNINGS April 28, 2022
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 2022 non-GAAP core earnings) as well as forecasts and estimates regarding PG&E Corporation’s and Pacific Gas and Electric Company’
Slide 3: Delivering On Our 2022 Non-GAAP Core EPS Guidance
® Delivering On Our 2022 Non-GAAP Core EPS Guidance Q1 RESULTS First Quarter 2022 Non-GAAP Core EPS1 of 30¢ FULL YEAR GUIDANCE 4 2022 Non-GAAP Core We deliver on our EPS growth target for investors AND put EPS1 of $1.07 - $1.13 surplus performance to work for our customers Presentation endnotes are
Slide 4: 2022: Mitigating Risk
® 2022: Mitigating Risk Mitigating Physical Risk Mitigating Financial Risk Coworkers Customers • Simple & Affordable Model • Culture Transformation • Improved Service • Capability Building • Affordable Rates Wildfire Investors • EPSS & PSPS • Non-GAAP Core EPS Growth1 • Inspections & Vegetation • At
Slide 5: Simple and Affordable Model
® Simple and Affordable Model OPPORTUNITIES1 Capital Investments 9% Long-Term Factors: Offset Capital Investments -O&M cost reduction (non-fuel)2 2% -Electric load growth3 1% - 3% -Other (including efficient financing)4 2% Subtotal 5% - 7% Customer Impacts: At or Below Assumed Inflation 2% - 4% Pres
Slide 6: Mitigating Physical Risk From Wildfires
® Mitigating Physical Risk From Wildfires Enhanced Powerline Safety Settings PSPS EXPANDING EPSS to all high fire 100% NEAR TERM risk areas 96% DECREASE in CPUC reportable DAMAGED 80% ignitions across 169 circuits (~11,000 miles) where EPSS was implemented1 STRUCTURES PREVENTED2 Undergrounding Plan
Slide 7: Creating Culture at PG&E
® Creating Culture at PG&E PURPOSE PERFORMANCE 2.05 • DELIVERING FOR OUR HOMETOWNS. 1.34 • • SERVING OUR PLANET. LEADING WITH LOVE. 75% 1.01 0.51 DART CAPABILITY REDUCTION1 2019 2020 2021 2022 YTD LEAN Undergrounding Permitting Process Cycle Time2 CULTURE 60% SERVICE & REDUCTION IN REVIEW AND APPROV
Slide 8: Report Card Q1 2022
® Report Card Q1 2022 Metric 2022 Goal 2022-2026 Goal Status1 • Annual CPUC Reportable WILDFIRE Ignitions greater than or 0 0 equal to 100 acres2 • Undergrounding Circuit 175 3,600 Miles CUSTOMER • Gas Distribution Main 220 1,150 Replacement Miles • Annual O&M Cost 2% 2% Reduction (Non-Fuel)3 • Non-
Slide 9: Q1 2022 Earnings Results
® Q1 2022 Earnings Results Three Months Ended March 31, 2022 (in millions, except per share amounts) Earnings EPS PG&E Corporation’s Earnings on a GAAP basis $ 475 $ 0.22 Non-core items: Amortization of Wildfire Fund contribution 85 0.04 Investigation remedies 70 0.03 Wildfire-related costs, net of
Slide 10: First Quarter 2022 Non-GAAP Core EPS Improved
® First Quarter 2022 Non-GAAP Core EPS Improved 2¢ 2¢ $0.26 3¢ $0.24 $0.22 $0.21 30¢ $0.26 23¢ Q1 2021 Cost Rate base Timing of Q1 2022 reduction growth taxes Amounts may not sum due to rounding. Non-GAAP core earnings is not calculated in accordance with GAAP and excludes non-core items. See Append
Slide 11: 2022 Factors Impacting Earnings
® 2022 Factors Impacting Earnings ~$49.8B 10.25% CPUC authorized ROE pending ~$2.28-$2.4B $1.07-$1.13 Equity Equity Earning Earning Base 1 (1) RateRatebase resolution of the 2022 Cost of Non-GAAP Core Earnings Non-GAAP Core EPS Capital filing 2 Key Factors Affecting Non-GAAP Core Earnings Non-Core I
Slide 12: Multi-Year Financial Plan
® Multi-Year Financial Plan Rate base Non-GAAP Core EPS ~9% CAGR 10% Growth and Dividend Yield Debt Paydown Weighted average rate base ($B) Potential Growth Opportunities projected ~9% CAGR • Undergrounding on equity rate base 2021-2026 $65-$77 • Additional wildfire mitigation (including remote grid
Slide 13: Simple and Affordable Model
® Simple and Affordable Model MODEL1 ILLUSTRATIVE O&M COST REDUCTION (NON-FUEL) ANNUAL FUTURE in Millions 2022 Long- Capital Investments 9% Plan Term Plan Good Business Decisions Long-Term Factors: Offset Customer Impacts -Attrition $25 $25 -O&M cost reduction -Contracting 150 50 2% (non-fuel)2 -Cap
Slide 14: Expected Recovery of Wildfire-Related Costs
® Expected Recovery of Wildfire-Related Costs $ in Millions Approved Applications (Final Decisions) Expected Cash Flow Expected Rate Recovery by Year Recovery from Balance at Recovery Previously Incurred Application 3/31/22 Through 2022 2023 Wildfire-Related Spend 2020 GRC Track 11 392 Dec. 2023 392
Slide 15: Five-Year Value Proposition
® Five-Year Value Proposition 2022-2024 2025-2026 1 Non-GAAP Core EPS (CAGR) 10% Non-GAAP Core EPS Growth At least 10% At least 9% 2 Dividend Eligibility reached mid-2023 Annual Non-GAAP Core EPS At least 10% At least 10% Growth & Dividend Yield 3 Rate Base Growth (CAGR) 9% 4 O&M Cost Reduction (Non
Slide 16: People, Planet, Prosperity, Underpinned by Performance: Goals
® People, Planet, Prosperity, Underpinned by Performance: Goals 100% 9% ~9% EPSS on all distribution line Capital Investments for our Rate Base CAGR miles in high fire risk areas Customers AND AND AND 10,000 ~2-4% 10% Customer Impacts: At or Below Non-GAAP Core EPS CAGR Underground Miles Assumed Inf
Slide 17: Q&A See You Soon! Investor Day June 10, 2022
Q&A See You Soon! Investor Day June 10, 2022
Slide 18: Appendix
[t PG&E Corporation Appendix
Slide 19: Table of Contents
® Table of Contents Appendix 1 Wildfire Mitigation Plan Progress Slide 20 Appendix 2 PG&E Utility Securitization Program Slide 21 Appendix 3 Regulatory Progress Slide 22 Appendix 4 Presentation Endnotes Slide 23-25 Appendix 5 Supplemental Earnings Materials Slide 26-37 19
Slide 20: Appendix 1: Wildfire Mitigation Plan Progress
® Appendix 1: Wildfire Mitigation Plan Progress1 Sectionalizing Devices 1,200 Weather Stations 1,195 1,313 1,318 1,005 885 627 1,200 1,318 Devices 228 Stations Installed Installed 2019 2020 2021 2022 2019 2020 2021 2022 Enhanced Vegetation HD Cameras 523 6,359 6,651 502 Management 4,376 349 2,498 6,
Slide 21: Appendix 2: PG&E Utility Securitization Program
® Appendix 2: PG&E Utility Securitization Program The Utility has received financing orders for two separate securitizations to finance costs in connection with the 2017 wildfires and wildfire mitigation capital expenditures expected to result in up to $10.7B of programmatic securitization issuances
Slide 22: Appendix 3: Regulatory Progress
® Appendix 3: Regulatory Progress Status as of Regulatory Case/Filing Docket Expected Milestones1 April 2022 2023 GRC Filed 6/30/21 Proposed Decision Expected Q3 2023 2023 GRC A.21-06-021 Supplemental testimony Filed 2/25/22 A.17-11-009 2019 Final Decision GT&S A.20-07-020 GT&S Capital Audit Settlem
Slide 23: Appendix 4: Presentation Endnotes
® Appendix 4: Presentation Endnotes Slide 3: Delivering On Our 2022 Non-GAAP Core EPS Guidance Slide titles are hyperlinks 1. Non-GAAP core EPS is not calculated in accordance with GAAP and excludes non-core items. See Appendix 5, Exhibit A for a reconciliation of EPS on a GAAP basis to non-GAAP cor
Slide 24: Appendix 4: Presentation Endnotes
® Appendix 4: Presentation Endnotes Slide 8: Report Card Slide titles are hyperlinks 1. Green checks indicate on track to meet 2022 target. 2. Measures the count of fire ignitions that result in fires equal to or greater than 100 acres in the Utility's High Fire Threat District and reportable to the
Slide 25: Appendix 4: Presentation Endnotes
® Appendix 4: Presentation Endnotes Slide titles are hyperlinks Slide 14: Expected Recovery of Wildfire-Related Costs 1. Balance represents wildfire-related costs approved in the 2020 GRC and recorded in the RTBA, WMBA, and VMBA which are not subject to reasonableness review Slide 15: Five-Year Valu
Slide 26: Appendix 5: Supplemental Earnings Materials
® Appendix 5: Supplemental Earnings Materials Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Exhibit A: Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Slides 27-29 Non-GAAP Core Earnings Exhibit B: Key Drivers of PG&E Corporation
Slide 27: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings First Quarter, 2022 vs. 2021 (in millions, except per share amounts) Three Months Ended March 31, E
Slide 28: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings First Quarter, 2022 vs. 2021 (in millions, except per share amounts) (3) Includes costs associated
Slide 29: Exhibit A: Reconciliation of GAAP to Non-GAAP Core Earnings
® Exhibit A: Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles ("GAAP") to Non-GAAP Core Earnings First Quarter, 2022 vs. 2021 (in millions, except per share amounts) (5) Includes a $63 million adj
Slide 30: 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") First Quarter, 2022 vs. 2021 (in millions, except per share amounts) First Quarter 2022 vs. 2021 Earnings per Earnings Common Share (Diluted) 2021 Non-GAAP Core Earnings (1) $ 487 $ 0.23 Cost reduction (2)
Slide 31: Exhibit C: PG&E Corporation's 2022 Earnings Guidance
® Exhibit C: PG&E Corporation's 2022 Earnings Guidance 2022 EPS Guidance Low High Estimated Earnings on a GAAP basis ~ $ 0.85 ~ $ 1.16 Estimated Non-Core Items: (1) Amortization of Wildfire Fund contribution (2) ~ 0.16 ~ 0.16 Bankruptcy and legal costs (3) ~ 0.10 ~ 0.04 Investigation remedies (4) ~
Slide 32: Exhibit C: 2022 Earnings Guidance; Exhibit E: 2020 and 2021 Guidance
® Exhibit C: PG&E Corporation's 2022 Earnings Guidance Exhibit E: PG&E Corporation's 2020 and 2021 Earnings Guidance (3) “Bankruptcy and legal costs" consists of exit financing costs, including interest on temporary Utility debt and write-off of unamortized fees related to the retirement of PG&E Cor
Slide 33: Exhibit C: PG&E Corporation's 2022 Earnings Guidance
® Exhibit C: PG&E Corporation's 2022 Earnings Guidance (5) “Wildfire-related costs, net of insurance" includes legal and other costs associated with the 2019 Kincade fire, 2020 Zogg fire, and 2021 Dixie fire, net of insurance. The total offsetting tax impact for the low and high non-core guidance ra
Slide 34: Exhibit C: PG&E Corporation's 2022 Earnings Guidance
® Exhibit C: PG&E Corporation's 2022 Earnings Guidance (7) “Prior period net regulatory impact" represents the recovery of capital expenditures from 2011 through 2014 above amounts adopted in the 2011 GT&S rate case, net of the TO18 and TO19 ROE impact resulting from the FERC order dated March 17, 2
Slide 35: Exhibit D: General Earnings Sensitivities for 2022
® Exhibit D: General Earnings Sensitivities for 2022 Pacific Gas & Electric Company Variable Description of Change Estimated 2022 Non-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 +/- $26 million
Slide 36: Exhibit E: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation
® Exhibit E: GAAP Net Income to Non-GAAP Adjusted EBITDA Reconciliation PG&E Corporation First Quarter, 2022 vs. 2021 Three Months Ended March 31, (in millions) 2022 2021 PG&E Corporation’s Net Income on a GAAP basis $ 478 $ 123 Income tax provision (benefit) (204) (98) Other income, net (149) (127)
Slide 37: Exhibit F: Use of Non-GAAP Financial Measures
® Exhibit F: 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