- Recorded GAAP earnings were $0.21 per diluted share for the
third quarter of 2022, compared to losses of $(0.55) per diluted
share for the same period in 2021.
- Non-GAAP core earnings were $0.29 per diluted share for the
third quarter of 2022, compared to earnings of $0.24 per diluted
share for the same period in 2021.
- Recorded GAAP earnings were $0.60 per diluted share for the
first nine months of 2022, compared to losses of $(0.29) per
diluted share for the same period in 2021.
- Non-GAAP core earnings were $0.84 per diluted share for the
first nine months of 2022, compared to earnings of $0.78 per
diluted share for the same period in 2021.
- 2022 EPS guidance for GAAP earnings was updated to a range of
$0.80 to $1.01 per diluted share and non-GAAP core earnings was
narrowed to a range of $1.09 to $1.11 per diluted share.
- Forecasting no equity needs in 2022 through 2024.
- 2023 EPS guidance initiated for GAAP earnings in the range of
$0.98 to $1.21 and non-GAAP core earnings in the range of $1.19 to
$1.23 per share.
PG&E Corporation (NYSE: PCG) recorded third-quarter 2022
income available for common shareholders of $456 million, or $0.21
per diluted share, as reported in accordance with generally
accepted accounting principles (GAAP). This compares with losses
attributable to common shareholders of $(1,091) million, or $(0.55)
per diluted share, for the third quarter of 2021.
GAAP results were primarily driven by unrecoverable interest
expense and other earnings factors, including allowance for funds
used during construction equity, incentive revenues, tax benefits,
and cost savings, net of below-the-line costs. Results are also
driven by costs related to the amortization of the Wildfire Fund
asset and accretion of the related Wildfire Fund liability,
strategic repositioning costs, Fire Victim Trust tax benefit net of
securitization, PG&E Corporation’s and Pacific Gas and Electric
Company’s (Utility) reorganization cases under Chapter 11 of the
U.S. Bankruptcy Code (Chapter 11), wildfire-related costs, and
investigation remedies, partially offset by prior period net
regulatory impact.
“PG&E is committed to reducing risk and delivering reliable,
affordable service to our customers and hometowns, while making the
right investments for a clean energy future,” said Patti Poppe, CEO
of PG&E Corporation. “Fulfilling those goals is essential to
our Triple Bottom Line of serving people, the planet, and
California’s prosperity.”
Non-GAAP Core Earnings
PG&E Corporation’s non-GAAP core earnings, which exclude
non-core items, were $608 million, or $0.29 per diluted share, in
the third quarter of 2022, compared with $479 million, or $0.24 per
diluted share, during the same period in 2021.
The increase in quarter-over-quarter non-GAAP core earnings per
diluted share was primarily driven by regulatory items, taxes,
reinvestment, and other miscellaneous items, growth in rate base
earnings, and cost reductions, partially offset by the increase in
shares outstanding.
Non-core items, which management does not consider
representative of ongoing earnings, totaled $152 million after tax,
or $0.07 per diluted share, in the third quarter of 2022, compared
with $1.6 billion after tax, or $0.79 per diluted share, during the
same period in 2021.
PG&E Corporation uses “non-GAAP core earnings,” which is a
non-GAAP financial measure, in order to provide a measure that
allows investors to compare the underlying financial performance of
the business from one period to another, exclusive of non-core
items. See the accompanying tables for a reconciliation of non-GAAP
core earnings to consolidated earnings (loss) attributable to
common shareholders.
2022 Guidance
PG&E Corporation is updating 2022 GAAP earnings guidance in
the range of $0.80 to $1.01 per diluted share. Factors driving GAAP
earnings include costs related to unrecoverable interest expense of
$330 million to $370 million after tax and other earnings factors,
including allowance for funds used during construction equity,
incentive revenues, tax benefits, and cost savings, net of
below-the-line costs. Additional factors include the amortization
of the Wildfire Fund asset and accretion of the related Wildfire
Fund liability, PG&E Corporation’s and the Utility’s
reorganization cases under Chapter 11, wildfire-related costs,
investigation remedies, and strategic repositioning costs,
partially offset by Fire Victim Trust tax benefit net of
securitization and prior period net regulatory impact.
On a non-GAAP basis, the guidance range for projected 2022
non-GAAP core earnings is narrowed to $1.09 to $1.11 per diluted
share. The guidance range for non-core items, which management does
not consider representative of ongoing earnings, is updated to $220
million to $630 million after tax.
Guidance is based on various assumptions and forecasts,
including those relating to authorized revenues, future expenses,
capital expenditures, rate base, equity issuances, and certain
other factors.
2023 Guidance
PG&E Corporation is initiating 2023 GAAP earnings guidance
in the range of $0.98 to $1.21 per diluted share. Factors driving
GAAP earnings include costs related to unrecoverable interest
expense of $370 million to $430 million after tax and other
earnings factors, including allowance for funds used during
construction equity, incentive revenues, tax benefits, and cost
savings, net of below-the-line costs. Additional factors include
the amortization of the Wildfire Fund asset and accretion of the
related Wildfire Fund liability, PG&E Corporation’s and the
Utility’s reorganization cases under Chapter 11, wildfire-related
costs, investigation remedies, and Fire Victim Trust tax benefits,
partially offset by prior period net regulatory impact.
On a non-GAAP basis, the guidance range for projected 2023
non-GAAP core earnings is initiated at $1.19 to $1.23 per diluted
share. The guidance range for non-core items, which management does
not consider representative of ongoing earnings, is updated to $50
million to $460 million after tax.
Guidance is based on various assumptions and forecasts,
including those relating to authorized revenues, future expenses,
capital expenditures, rate base, equity issuances, and certain
other factors.
Supplemental Financial Information
In addition to the financial information accompanying this
release, presentation slides have been furnished to the Securities
and Exchange Commission (SEC) and are available on PG&E
Corporation’s website at:
http://investor.pgecorp.com/financials/quarterly-earnings-reports/default.aspx.
Earnings Conference Call
PG&E Corporation will also hold a conference call on October
27, 2022, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to
discuss its third quarter 2022 results. The public can access the
conference call through a simultaneous webcast. The link is
provided below and will also be available from the PG&E
Corporation website.
What: Third Quarter 2022 Earnings
Call
When: Thursday, October 27, 2022 at
11:00 a.m. Eastern Time
Where:
http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx
A replay of the conference call will be archived at
http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx.
Alternatively, a toll-free replay of the conference call may be
accessed shortly after the live call through November 3, 2022, by
dialing (800) 770-2030. International callers may dial (647)
362-9199. For both domestic and international callers, the
confirmation code 64421 will be required to access the replay.
Public Dissemination of Certain Information
PG&E Corporation and the Utility routinely provide links to
the Utility’s principal regulatory proceedings with the California
Public Utilities Commission and the Federal Energy Regulatory
Commission at http://investor.pgecorp.com, under the “Regulatory
Filings” tab, so that such filings are available to investors upon
filing with the relevant agency. PG&E Corporation and the
Utility also routinely post, or provide direct links to,
presentations, documents, and other information that may be of
interest to investors, including regarding dividends, at
http://investor.pgecorp.com, under the “Chapter 11,” “Wildfire and
Safety Updates,” “News & Events: Events & Presentations,”
and “Shareholders: Dividend Information” tabs, respectively, in
order to publicly disseminate such information. It is possible that
any of these filings or information included therein could be
deemed to be material information.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company
headquartered in Oakland, California. It is the parent company of
Pacific Gas and Electric Company, an energy company that serves 16
million Californians across a 70,000-square-mile service area in
Northern and Central California. For more information, visit
http://www.pgecorp.com.
Forward-Looking Statements
This news release contains forward-looking statements that are
not historical facts, including statements about the beliefs,
expectations, estimates, future plans and strategies of PG&E
Corporation and the Utility, including but not limited to earnings
guidance and equity financing requirements for 2022, 2023 and 2024.
These statements are based on current expectations and assumptions,
which management believes are reasonable, and on information
currently available to management, but are necessarily subject to
various risks and uncertainties. In addition to the risk that these
assumptions prove to be inaccurate, factors that could cause actual
results to differ materially from those contemplated by the
forward-looking statements include factors disclosed in PG&E
Corporation and the Utility’s joint annual report on Form 10-K for
the year ended December 31, 2021, their most recent quarterly
report on Form 10-Q for the quarter ended September 30, 2022, and
other reports filed with the SEC, which are available on PG&E
Corporation's website at www.pgecorp.com and on the SEC website at
www.sec.gov. PG&E Corporation and the Utility undertake no
obligation to publicly update or revise any forward-looking
statements, whether due to new information, future events or
otherwise, except to the extent required by law.
PG&E CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share
amounts)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Operating Revenues
Electric
$
3,895
$
4,181
$
11,743
$
11,527
Natural gas
1,499
1,284
$
4,567
3,869
Total operating revenues
5,394
5,465
16,310
15,396
Operating Expenses
Cost of electricity
1,032
1,133
2,314
2,570
Cost of natural gas
257
176
1,177
670
Operating and maintenance
2,250
2,795
7,651
7,714
SB 901 securitization charges,
net
—
—
40
—
Wildfire-related claims, net of
recoveries
9
94
153
261
Wildfire Fund expense
118
162
353
399
Depreciation, amortization, and
decommissioning
1,002
801
2,915
2,540
Total operating expenses
4,668
5,161
14,603
14,154
Operating Income
726
304
1,707
1,242
Interest income
43
—
70
17
Interest expense
(525
)
(399
)
(1,355
)
(1,205
)
Other income, net
118
132
246
387
Reorganization items, net
—
—
—
(11
)
Income Before Income Taxes
362
37
668
430
Income tax provision
(benefit)
(97
)
1,125
(629
)
994
Net Income (Loss)
459
(1,088
)
1,297
(564
)
Preferred stock dividend
requirement of subsidiary
3
3
10
10
Income (Loss) Attributable to Common
Shareholders
$
456
$
(1,091
)
$
1,287
$
(574
)
Weighted Average Common Shares
Outstanding, Basic
1,987
1,985
1,987
1,985
Weighted Average Common Shares
Outstanding, Diluted
2,132
1,985
2,132
1,985
Net Income (Loss) Per Common Share,
Basic
$
0.23
$
(0.55
)
$
0.65
$
(0.29
)
Net Income (Loss) Per Common Share,
Diluted
$
0.21
$
(0.55
)
$
0.60
$
(0.29
)
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 Third Quarter, 2022 vs. 2021 (in
millions, except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
Earnings
Earnings per Common Share
(Diluted)
Earnings
Earnings per Common Share
(Diluted)
(in millions, except per share
amounts)
2022
2021
2022
2021
2022
2021
2022
2021
PG&E Corporation’s Earnings (Loss)
on a GAAP basis
$
456
$
(1,091
)
$
0.21
$
(0.55
)
$
1,287
$
(574
)
$
0.60
$
(0.29
)
Non-core items: (1)
Amortization of Wildfire Fund
contribution (2)
85
116
0.04
0.06
254
287
0.12
0.14
Strategic repositioning costs
(3)
61
—
0.03
—
65
—
0.03
—
Fire Victim Trust tax benefit
net of securitization (4)
29
—
0.01
—
(279
)
—
(0.13
)
—
Bankruptcy and legal costs
(5)
16
1,307
0.01
0.66
202
1,379
0.09
0.69
Wildfire-related costs, net of
insurance (6)
12
5
0.01
—
190
141
0.09
0.07
Investigation remedies (7)
5
68
—
0.03
76
147
0.04
0.07
Prior period net regulatory
impact (8)
(56
)
74
(0.03
)
0.04
(11
)
162
(0.01
)
0.08
PG&E Corporation’s Non-GAAP Core
Earnings (9)
$
608
$
479
$
0.29
$
0.24
$
1,783
$
1,542
$
0.84
$
0.78
All amounts presented in the table above and footnotes below are
tax adjusted at PG&E Corporation’s statutory tax rate of 27.98%
for 2022 and 2021, except for certain costs that are not tax
deductible. Amounts may not sum due to rounding.
(1)
“Non-core items” include items that
management does not consider representative of ongoing earnings and
affect comparability of financial results between periods,
consisting of the items listed in the table above. See Use of
Non-GAAP Financial Measures below.
(2)
The Utility recorded costs of $118 million
(before the tax impact of $33 million) and $353 million (before the
tax impact of $99 million) during the three and nine months ended
September 30, 2022, respectively, associated with the amortization
of the Wildfire Fund asset and accretion of the related Wildfire
Fund liability.
(3)
The Utility recorded costs of $85 million
(before the tax impact of $24 million) and $90 million (before the
tax impact of $25 million) during the three and nine months ended
September 30, 2022, respectively, for one-time costs related to
repositioning PG&E Corporation’s and the Utility’s operating
model, including their workforce, and the potential sale of a
minority interest in Pacific Generation LLC.
(4)
Includes any earnings-impacting investment
losses, net of gains, associated with investments related to the
upfront contributions to the Customer Credit Trust, the charge
related to the establishment of the SB 901 securitization
regulatory asset and the SB 901 securitization regulatory liability
associated with revenue credits funded by Net Operating Loss
monetization, and tax benefits associated with the sale of shares
of PG&E Corporation common stock sold by the Fire Victim
Trust.
(in millions)
Three Months Ended September
30, 2022
Nine Months Ended September
30, 2022
Losses, net of gains related to
Customer Credit Trust
$
40
$
40
Rate neutral securitization
inception charge
—
40
Fire Victim Trust tax benefit net of
securitization (pre-tax)
$
40
$
80
Tax impacts
(11
)
(22
)
Tax benefits from Fire Victim
Trust share sales
—
(337
)
Fire Victim Trust tax benefit net of
securitization (post-tax)
$
29
$
(279
)
(5)
Includes bankruptcy and legal costs
associated with PG&E Corporation’s and the Utility’s Chapter 11
filing, including exit financing costs, legal and other costs, and
securities litigation costs, as shown below.
(in millions)
Three Months Ended September
30, 2022
Nine Months Ended September
30, 2022
Exit financing
$
14
$
72
Legal and other costs
9
64
Securities litigation costs
—
145
Bankruptcy and legal costs
(pre-tax)
$
23
$
281
Tax impacts
(7
)
(79
)
Bankruptcy and legal costs
(post-tax)
$
16
$
202
(6)
Includes costs associated with the 2019
Kincade fire, 2020 Zogg fire, and 2021 Dixie fire, net of
insurance, as shown below.
(in millions)
Three Months Ended September
30, 2022
Nine Months Ended September
30, 2022
2019 Kincade fire-related
costs
$
10
$
26
2019 Kincade third-party
claims
—
150
2019 Kincade fire-related legal
settlements
—
20
2020 Zogg fire-related
costs
4
21
2020 Zogg fire-related
insurance recoveries
(1
)
(10
)
2021 Dixie fire-related legal
settlements
4
39
Wildfire-related costs, net of
insurance (pre-tax)
$
17
$
246
Tax impacts
(5
)
(56
)
Wildfire-related costs, net of
insurance (post-tax)
$
12
$
190
(7)
Includes costs associated with the CPUC’s
OII into the 2017 Northern California Wildfires and 2018 Camp Fire,
the system enhancements related to the locate and mark OII,
restoration and rebuild costs associated with the town of Paradise,
and the settlement agreement with the Safety and Enforcement
Division’s investigation into the 2019 Kincade fire, as shown
below.
(in millions)
Three Months Ended September
30, 2022
Nine Months Ended September
30, 2022
Wildfire OII disallowance and
system enhancements
$
3
$
16
Locate and mark OII system
enhancements
1
3
Paradise restoration and
rebuild
1
(2
)
2019 Kincade fire
settlement
—
85
Investigation remedies
(pre-tax)
$
5
$
101
Tax impacts
—
(25
)
Investigation remedies
(post-tax)
$
5
$
76
(8)
Includes adjustments associated with the
recovery of capital expenditures from 2011 through 2014 above
amounts adopted in the 2011 GT&S rate case per the CPUC
decision dated July 14, 2022, partially offset by adjustments for
the TO18 and TO19 ROE impact as a result of the FERC order dated
March 17, 2022, which established a base ROE of 9.26% for the TO18
period, plus the approved CAISO incentive adder of 0.5%, for a
total ROE of 9.76%.
(in millions)
Three Months Ended September
30, 2022
Nine Months Ended September
30, 2022
2011-2014 GT&S capital
audit
$
(78
)
$
(78
)
TO18 and TO19 ROE impact
—
63
Prior period net regulatory impact
(pre-tax)
$
(78
)
$
(16
)
Tax impacts
22
5
Prior period net regulatory impact
(post-tax)
$
(56
)
$
(11
)
(9)
“Non-GAAP core earnings” is a non-GAAP
financial measure. See Use of Non-GAAP Financial Measures
below.
Undefined, capitalized terms have the meanings set forth in the
PG&E Corporation and the Utility’s joint quarterly report on
Form 10-Q for the quarter ended September 30, 2022.
PG&E Corporation’s 2022 and 2023
Earnings Guidance
2022
2023
EPS Guidance
Low
High
Low
High
Estimated Earnings on a GAAP
basis
~
$
0.80
~
$
1.01
~
$
0.98
~
$
1.21
Estimated Non-Core Items: (1)
Amortization of Wildfire Fund
contribution (2)
~
0.16
~
0.16
~
0.16
~
0.16
Bankruptcy and legal costs
(3)
~
0.11
~
0.10
~
0.02
~
0.01
Wildfire-related costs, net of
insurance (4)
~
0.10
~
0.09
~
0.02
~
0.01
Investigation remedies (5)
~
0.05
~
0.05
~
0.01
~
0.01
Strategic repositioning costs
(6)
~
0.03
~
0.03
~
—
~
—
Fire Victim Trust tax benefit
net of securitization (7)
~
(0.15
)
~
(0.32
)
~
0.01
~
(0.17
)
Prior period net regulatory
impact (8)
~
(0.01
)
~
(0.01
)
~
(0.01
)
~
(0.01
)
Estimated EPS on a non-GAAP Core
Earnings basis
~
$
1.09
~
$
1.11
~
$
1.19
~
$
1.23
All amounts presented in the table above and footnotes below are
tax adjusted at PG&E Corporation’s statutory tax rate of 27.98%
for 2022 and 2023, except for certain costs that are not tax
deductible. Amounts may not sum due to rounding.
(1)
“Non-core items” include items that
management does not consider representative of ongoing earnings and
affect comparability of financial results between periods. See Use
of Non-GAAP Financial Measures below.
(2)
“Amortization of Wildfire Fund
contribution” represents the amortization of the Wildfire Fund
asset and accretion of the related Wildfire Fund liability. The
total offsetting tax impact for the low and high non-core guidance
range is $132 million for 2022 and 2023.
2022
2023
(in millions, pre-tax)
Low guidance range
High guidance range
Low guidance range
High guidance range
Amortization of Wildfire Fund
contribution
~
$
470
~
$
470
~
$
470
~
$
470
(3)
“Bankruptcy and legal costs” consists of
securities litigation costs, legal and other costs associated with
PG&E Corporation’s and the Utility’s Chapter 11 filing, and
exit financing costs, including interest on temporary Utility debt
and write-off of unamortized fees related to the retirement of
PG&E Corporation debt. The total offsetting tax impact for the
low and high non-core guidance range is $90 million and $83
million, respectively, for 2022, and $18 million and $13 million,
respectively, for 2023.
2022
2023
(in millions, pre-tax)
Low guidance range
High guidance range
Low guidance range
High guidance range
Securities litigation costs
~
$
145
~
$
145
~
$
—
~
$
—
Legal and other costs
~
90
~
70
~
30
~
20
Exit financing
~
85
~
80
~
35
~
25
Bankruptcy and legal costs
~
$
320
~
$
295
~
$
65
~
$
45
(4)
“Wildfire-related costs, net of insurance”
includes third-party claims and 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 range is $56 million and $50 million,
respectively, for 2022, and $14 million and $11 million,
respectively, for 2023.
2022
2023
(in millions, pre-tax)
Low guidance range
High guidance range
Low guidance range
High guidance range
2019 Kincade third-party
claims
~
$
150
~
$
150
~
$
—
~
$
—
2019 Kincade fire-related
costs
~
40
~
20
~
35
~
25
2019 Kincade fire-related legal
settlements
~
20
~
20
~
—
~
—
2020 Zogg fire-related
costs
~
40
~
20
~
30
~
20
2020 Zogg fire-related
insurance recoveries
~
(30
)
~
(10
)
~
(30
)
~
(20
)
2021 Dixie fire-related legal
settlements
~
50
~
50
~
15
~
15
Wildfire-related costs, net of
insurance
~
$
270
~
$
250
~
$
50
~
$
40
(5)
“Investigation remedies” includes costs
related to the 2019 Kincade fire settlement with the Safety and
Enforcement Division approved by the CPUC on December 2, 2021, the
Wildfires OII decision different, Paradise restoration and rebuild,
and the locate and mark OII system enhancements. The total
offsetting tax impact for the low and high non-core guidance range
is $28 million for 2022 and $3 million for 2023.
2022
2023
(in millions, pre-tax)
Low guidance range
High guidance range
Low guidance range
High guidance range
2019 Kincade fire
settlement
~
$
85
~
$
85
~
$
—
~
$
—
Wildfire OII disallowance and
system enhancements
~
20
~
20
~
20
~
20
Paradise restoration and
rebuild
~
15
~
15
~
10
~
10
Locate and mark OII system
enhancements
~
5
~
5
~
5
~
5
Investigation remedies
~
$
125
~
$
125
~
$
35
~
$
35
(6)
“Strategic repositioning costs” includes
one-time costs related to repositioning PG&E Corporation’s and
the Utility’s operating model, including their workforce, and costs
associated with the potential sale of a minority interest in
Pacific Generation LLC. The total offsetting tax impact for the low
and high non-core guidance range is $27 million for 2022.
2022
2023
(in millions, pre-tax)
Low guidance range
High guidance range
Low guidance range
High guidance range
Strategic repositioning costs
~
$
95
~
$
95
~
$
—
~
$
—
(7)
“Fire Victim Trust tax benefit net of
securitization” includes the impact of rate neutral (SB 901)
securitization and tax benefits related to the Fire Victim Trust.
Impacts of the rate neutral (SB 901) securitization include the
establishment of the SB 901 securitization regulatory asset and the
SB 901 regulatory liability associated with revenue credits funded
by Net Operating Loss monetization. Fire Victim Trust tax benefits
include tax benefits recognized upon the sale of shares of PG&E
Corporation common stock by the Fire Victim Trust, which PG&E
Corporation and the Utility have elected to treat as a grantor
trust. Also included are the earnings-impacting investment losses,
net of gains, associated with investments related to the upfront
contributions to the Customer Credit Trust. The 2022 low case
includes tax benefits for the 135,000,000 shares of PG&E
Corporation common stock sold in the aggregate by the Fire Victim
Trust as of October 20, 2022, plus losses, net of gains, on
investments related to the Customer Credit Trust, and the 2022 high
case reflects an assumption that the Fire Victim Trust sells all
477,743,590 shares in 2022, plus losses, net of gains, on
investments related to the Customer Credit Trust. The 2023 low case
reflects an assumption that the Fire Victim Trust sells zero shares
during 2023, whereas the 2023 high case reflects an assumption that
the Fire Victim Trust sells the remaining 342,743,590 shares during
2023. The total offsetting tax benefit for the low and high
non-core guidance range is $536 million and $2.3 billion,
respectively, for 2022, and $11 million and $1.8 billion,
respectively, for 2023.
2022
2023
(in millions, pre-tax)
Low guidance range
High guidance range
Low guidance range
High guidance range
Rate neutral securitization inception
charge
~
$
185
~
$
1,525
~
$
40
~
$
1,425
Losses, net of gains related to
Customer Credit Trust
~
$
40
~
$
40
~
$
—
~
—
Fire Victim Trust tax benefit net of
securitization
~
$
225
~
$
1,565
~
$
40
~
$
1,425
(8)
“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, 2022, which established a base ROE of 9.26% for the TO18
period, plus the approved CAISO incentive adder of 0.5%, for a
total ROE of 9.76%. The total offsetting tax impact for the low and
high non-core guidance range is $4 million for 2022 and $10 million
for 2023.
2022
2023
(in millions, pre-tax)
Low guidance range
High guidance range
Low guidance range
High guidance range
2011-2014 GT&S capital
audit
~
$
(80
)
~
$
(80
)
~
$
(35
)
~
$
(35
)
TO18 and TO19 ROE impact
~
65
~
65
~
—
~
—
Prior period net regulatory
impact
~
$
(15
)
~
$
(15
)
~
$
(35
)
~
$
(35
)
Undefined, capitalized terms have the meanings set forth in the
PG&E Corporation and the Utility’s joint quarterly report on
Form 10-Q for the quarter ended September 30, 2022.
Use of Non-GAAP Financial Measures
PG&E Corporation and Pacific Gas and
Electric Company
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 measure that allows investors to
compare the underlying financial performance of the business from
one period to another, exclusive of non-core items.
“Non-GAAP core earnings” is a non-GAAP financial measure and is
calculated as income available for common shareholders less
non-core items. “Non-core items” include items that management does
not consider representative of ongoing earnings and affect
comparability of financial results between periods, consisting of
the items listed in Exhibit A. “Non-GAAP core EPS,” also referred
to as “non-GAAP core earnings per share,” is a non-GAAP financial
measure and is calculated as non-GAAP core earnings divided by
common shares outstanding (taken on a basic basis in the event of a
GAAP loss and a diluted basis in the event of a GAAP gain).
PG&E Corporation and the Utility use non-GAAP core earnings and
non-GAAP core EPS to understand and compare operating results
across reporting periods for various purposes including internal
budgeting and forecasting, short- and long-term operating planning,
and employee incentive compensation. PG&E Corporation and the
Utility believe that non-GAAP core earnings and non-GAAP core EPS
provide additional insight into the underlying trends of the
business, allowing for a better comparison against historical
results and expectations for future performance. With respect to
our projection of non-GAAP core EPS for the years 2024-2026, we are
not providing a reconciliation to the corresponding GAAP measures
because we are unable to predict with reasonable certainty the
reconciling items that may affect GAAP net income without
unreasonable effort. The reconciling items are primarily due to the
future impact of wildfire-related costs, timing of regulatory
recoveries, special tax items, and investigation remedies. These
reconciling items are uncertain, depend on various factors and
could significantly impact, either individually or in the
aggregate, the GAAP measures.
Non-GAAP core earnings and non-GAAP core EPS are not substitutes
or alternatives for GAAP measures such as consolidated income
available for common shareholders and may not be comparable to
similarly titled measures used by other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221026006130/en/
Investor Relations Contact: 415.972.7080 Media Inquiries
Contact: 415.973.5930 | www.pgecorp.com
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