OAKLAND,
Calif., Nov. 7, 2024 /PRNewswire/ -- PG&E
Corporation (NYSE: PCG) is on track to deliver solid financial
results in 2024 and beyond:
- GAAP earnings were $0.27 per
share for the third quarter of 2024, compared to earnings of
$0.16 for the same period in
2023.
- GAAP earnings were $0.85 per
share for the first nine months of 2024, compared to earnings of
$0.62 per share for the same period
in 2023.
- Non-GAAP core earnings were $0.37
per share for the third quarter of 2024, compared to earnings of
$0.24 per share for the same period
in 2023.
- Non-GAAP core earnings were $1.06
per share for the first nine months of 2024, compared to earnings
of $0.76 per share for the same
period in 2023.
- Updating 2024 EPS GAAP guidance to a range of $1.09 to $1.14 per
share and narrowing 2024 non-GAAP core EPS guidance to a range of
$1.34 to $1.37 per share.
- Adding $1 billion to 2024-2028
capital plan in response to growing customer demand; financing
already in place through issuance of junior subordinated
notes.
- Reaffirming no equity needs in 2024 and 2025-2028 equity needs
of $3 billion.
- Initiating 2025 EPS guidance for GAAP earnings in the range of
$1.30 to $1.36 and non-GAAP core earnings in the range of
$1.47 to $1.51 per share.
- On October 28, 2024, the state
Wildfire Fund made its second monthly payment to the Utility for
Dixie fire claims in the amount of $34
million.
Operational progress during the third quarter of 2024 continues
to focus on physical safety and delivery of affordable and
resilient energy:
- Constructed 58 miles of underground powerlines and 66 miles of
covered powerlines with stronger poles in the highest fire-risk
areas, for a total of 120 miles and 113 miles, respectively, in the
first nine months of 2024.
- Installed 14 new AI-enabled high-definition cameras for
wildfire detection for a total of more than 630 across the
system.
- Connected 2,889 new residential and business customers to our
electric system, for a total of 8,073 in the first nine months of
2024.
- Installed more than 320 electric vehicle charging ports for a
total of about 1,040 new ports installed during the first nine
months of 2024.
- Supported the opening of California's largest landfill gas to renewable
natural gas (RNG) plant. The facility is designed to produce about
1 billion cubic feet of RNG and reduce 62,000 metric tons of carbon
emissions annually.
- Ranked No. 1 overall on the 2024 U.S. Utilities Decarbonization
Index, compiled by the National Public Utilities Council. The
report highlights the Utility's clean electricity and emissions
reduction progress toward a net-zero energy system in 2040.
"We continue to deliver for our hometowns through a foundation
of safety for our customers. We're building infrastructure for
purpose—a clean, climate-resilient energy system that meets our
state's growing electric demand and is affordable for all," said
PG&E Corporation CEO, Patti
Poppe.
2024 Guidance
PG&E Corporation is updating 2024 GAAP earnings guidance in
the range of $1.09 to $1.14 per share (previously $1.11 to $1.17 per
share). Factors driving GAAP earnings include costs related to
unrecoverable interest expense of $285
million to $365 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, costs related to PG&E
Corporation's and Pacific Gas and Electric Company's (Utility)
reorganization cases under Chapter 11, wildfire-related costs, and
investigation remedies, partially offset by prior period net
regulatory impact.
The guidance range for projected 2024 non-GAAP core earnings is
narrowed to $1.34 to $1.37 per share (previously $1.33 to $1.37 per
share). The guidance range for non-core items, which management
does not consider representative of ongoing earnings, is
$500 million to $540 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.
2025 Guidance
PG&E Corporation is initiating 2025 GAAP earnings guidance
in the range of $1.30 to $1.36 per share. Factors driving GAAP earnings
include costs related to unrecoverable interest expense of
$350 million to $400 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, costs related to PG&E Corporation's and the
Utility's reorganization cases under Chapter 11, wildfire-related
costs, and investigation remedies, partially offset by prior period
net regulatory impact.
The guidance range for projected 2025 non-GAAP core earnings is
initiated at $1.47 to $1.51 per share. The guidance range for non-core
items, which management does not consider representative of ongoing
earnings, is $340 million to
$380 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.
Capital Plan
PG&E Corporation is increasing its 5-year capital investment
plan by $1 billion for a total of
$63 billion for 2024 through 2028.
The incremental capital is driven by growing customer demand and
has already been approved by the California Public Utilities
Commission through Decision 24-07-008. The incremental capital has
also already been financed through the recent issuance of junior
subordinated notes and PG&E Corporation is reaffirming its 2025
to 2028 equity issuance guidance of $3
billion.
Financial Results
PG&E Corporation recorded third-quarter 2024 income
available for common shareholders of $576
million, or $0.27 per share,
as reported in accordance with generally accepted accounting
principles (GAAP). This compares with income available for common
shareholders of $348 million, or
$0.16 per share, for the third
quarter of 2023.
The increase in GAAP results is primarily driven by an increase
in customer capital investment, as approved in the 2023 General
Rate Case final decision and which earns an equity return as
approved in the cost of capital adjustment mechanism advice letter
filing. Other drivers include non-fuel operating and maintenance
savings achieved for various programs such as process improvements
for inspections, as well as lower contract spend through strategic
sourcing. Operating and maintenance savings are reinvested back
into the business for various programs that support risk mitigation
such as inspections and corrosion maintenance.
GAAP results were also impacted by a pre-tax charge of
$75 million related to the 2019
Kincade fire for the three months ended September 30, 2024. PG&E Corporation and the
Utility also recorded a pre-tax charge of $275 million related to the 2021 Dixie fire. This
charge did not impact GAAP results as it was fully offset by
probable recoveries from the Wildfire Fund.
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 available for common
shareholders.
Non-GAAP Core Earnings
PG&E Corporation's non-GAAP core earnings, which exclude
non-core items, were $791 million, or
$0.37 per share, in the third quarter
of 2024, compared to earnings of $513
million, or $0.24 per share,
during the same period in 2023.
The increase in quarter-over-quarter non-GAAP core earnings per
share is primarily driven by similar factors to the GAAP results,
including customer capital investment, and non-fuel operating and
maintenance savings, net of amounts reinvested back into the
business.
Non-core items, which management does not consider
representative of ongoing earnings, totaled $215 million after tax, or $0.10 per share, in the third quarter of 2024,
compared with $165 million after tax,
or $0.08 per share, during the same
period in 2023.
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
November 7, 2024, at 11:00 a.m. Eastern
Time (8:00 a.m. Pacific Time)
to discuss its third quarter 2024 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 2024 Earnings Call
When: Thursday, November 7, 2024 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 14th, 2024, by dialing (800) 770-2030.
The confirmation code 92587 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 at http://investor.pgecorp.com, under the
"Wildfire and Safety Updates" and "News & Events: Events &
Presentations" 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 regarding earnings,
operating cost savings, capital investments, and financings. 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's and the Utility's joint Annual Report on Form 10-K
for the year ended December 31, 2023,
their most recent Quarterly Report on Form 10-Q for the quarter
ended September 30, 2024, and other
reports filed with the SEC, which are available on PG&E
Corporation's website at www.pgecorp.com and on the SEC's 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
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(in millions, except
per share amounts)
|
|
|
(Unaudited)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Electric
|
$
4,538
|
|
$
4,507
|
|
$
13,048
|
|
$
12,478
|
|
Natural gas
|
1,403
|
|
1,381
|
|
4,740
|
|
4,909
|
|
Total operating
revenues
|
5,941
|
|
5,888
|
|
17,788
|
|
17,387
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Cost of
electricity
|
835
|
|
846
|
|
1,919
|
|
2,040
|
|
Cost of natural
gas
|
89
|
|
158
|
|
822
|
|
1,348
|
|
Operating and
maintenance
|
2,683
|
|
3,139
|
|
8,076
|
|
8,252
|
|
SB 901 securitization
charges, net
|
33
|
|
346
|
|
33
|
|
908
|
|
Wildfire-related
claims, net of recoveries
|
74
|
|
(32)
|
|
70
|
|
(35)
|
|
Wildfire Fund
expense
|
139
|
|
219
|
|
295
|
|
453
|
|
Depreciation,
amortization, and decommissioning
|
1,059
|
|
811
|
|
3,134
|
|
2,885
|
|
Total operating
expenses
|
4,912
|
|
5,487
|
|
14,349
|
|
15,851
|
|
Operating
Income
|
1,029
|
|
401
|
|
3,439
|
|
1,536
|
|
Interest
income
|
156
|
|
154
|
|
495
|
|
409
|
|
Interest
expense
|
(795)
|
|
(682)
|
|
(2,322)
|
|
(1,924)
|
|
Other income,
net
|
83
|
|
62
|
|
241
|
|
213
|
|
Income (Loss) Before
Income Taxes
|
473
|
|
(65)
|
|
1,853
|
|
234
|
|
Income tax provision
(benefit)
|
(106)
|
|
(416)
|
|
15
|
|
(1,099)
|
|
Net
Income
|
579
|
|
351
|
|
1,838
|
|
1,333
|
|
Preferred stock
dividend requirement of subsidiary
|
3
|
|
3
|
|
10
|
|
10
|
|
Income Available for
Common Shareholders
|
$
576
|
|
$
348
|
|
$
1,828
|
|
$
1,323
|
|
Weighted Average
Common Shares Outstanding, Basic
|
2,137
|
|
2,111
|
|
2,136
|
|
2,041
|
|
Weighted Average
Common Shares Outstanding, Diluted
|
2,143
|
|
2,140
|
|
2,142
|
|
2,138
|
|
Net Income Per
Common Share, Basic
|
$
0.27
|
|
$
0.16
|
|
$
0.86
|
|
$
0.65
|
|
Net Income Per
Common Share, Diluted
|
$
0.27
|
|
$
0.16
|
|
$
0.85
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
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
|
|
Third Quarter, 2024 vs.
2023
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
Earnings
|
|
Earnings per
Common
Share
|
|
Earnings
|
|
Earnings per
Common
Share
|
|
(in millions, except
per share amounts)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
PG&E
Corporation's earnings/EPS on a GAAP basis
|
$
576
|
|
$
348
|
|
$
0.27
|
|
$
0.16
|
|
$
1,828
|
|
$
1,323
|
|
$
0.85
|
|
$
0.62
|
|
Non-core items:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
Wildfire Fund contribution (2)
|
100
|
|
157
|
|
0.05
|
|
0.07
|
|
212
|
|
326
|
|
0.10
|
|
0.15
|
|
Bankruptcy and legal
costs (3)
|
9
|
|
47
|
|
—
|
|
0.02
|
|
34
|
|
81
|
|
0.02
|
|
0.04
|
|
Fire Victim Trust tax
benefit net of securitization (4)
|
31
|
|
(46)
|
|
0.01
|
|
(0.02)
|
|
31
|
|
(185)
|
|
0.01
|
|
(0.09)
|
|
Investigation remedies
(5)
|
21
|
|
3
|
|
0.01
|
|
—
|
|
41
|
|
20
|
|
0.02
|
|
0.01
|
|
Prior period net
regulatory impact (6)
|
(6)
|
|
(6)
|
|
—
|
|
—
|
|
(17)
|
|
(17)
|
|
(0.01)
|
|
(0.01)
|
|
Strategic
repositioning costs (7)
|
—
|
|
1
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
|
Tax-related
adjustments (8)
|
—
|
|
—
|
|
—
|
|
—
|
|
70
|
|
—
|
|
0.03
|
|
—
|
|
Wildfire-related
costs, net of recoveries (9)
|
60
|
|
9
|
|
0.03
|
|
—
|
|
66
|
|
73
|
|
0.03
|
|
0.03
|
|
PG&E
Corporation's non-GAAP core earnings/EPS (10)
|
$
791
|
|
$
513
|
|
$
0.37
|
|
$
0.24
|
|
$
2,265
|
|
$
1,624
|
|
$
1.06
|
|
$
0.76
|
|
|
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 2024 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, consisting of the items listed in the table above.
See Non-GAAP Financial Measures below.
|
|
|
|
(2)
|
The Utility recorded
costs of $139 million (before the tax impact of $39 million) and
$295 million (before the tax impact of $83 million) during the
three and nine months ended September 30, 2024, respectively,
associated with the amortization of the Wildfire Fund asset and
accretion of the related Wildfire Fund liability.
|
|
|
|
(3)
|
PG&E Corporation
and the Utility recorded costs of $12 million (before the tax
impact of $3 million) and $47 million (before the tax impact of $13
million) during the three and nine months ended September 30, 2024,
respectively, related to bankruptcy and legal costs associated with
PG&E Corporation's and the Utility's Chapter 11 filing,
including legal and other costs.
|
|
|
|
(4)
|
The Utility recorded
costs of $42 million (before the tax impact of $11 million) and $43
million (before the tax impact of $12 million) during the three and
nine months ended September 30, 2024, respectively, related to any
earnings-impacting investment losses or gains associated with
investments related to the contributions to the customer credit
trust, as well as 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 the
net operating loss monetization.
|
|
|
|
(5)
|
Includes costs
associated with the decision different for the OII related to the
2017 Northern California Wildfires and 2018 Camp Fire ("Wildfires
OII"), the system enhancements related to the locate and mark OII,
restoration and rebuilding costs for the town of Paradise, and the
settlement agreement resolving the Safety and Enforcement
Division's investigation into the 2020 Zogg fire, as shown
below.
|
|
(in
millions)
|
Three Months
Ended
September 30, 2024
|
|
Nine Months
Ended
September 30, 2024
|
|
Wildfires OII
disallowance and system enhancements
|
$
1
|
|
$
5
|
|
Locate and mark OII
system enhancements
|
1
|
|
2
|
|
Paradise restoration
and rebuild
|
2
|
|
4
|
|
2020 Zogg fire
settlement
|
20
|
|
34
|
|
Investigation
remedies
|
$
24
|
|
$
45
|
|
Tax impacts
|
(3)
|
|
(4)
|
|
Investigation
remedies (post-tax)
|
$
21
|
|
$
41
|
|
|
|
(6)
|
The Utility recorded $8
million (before the tax impact of $2 million) and $24 million
(before the tax impact of $7 million) during the three and nine
months ended September 30, 2024, respectively, related to
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.
|
|
|
|
(7)
|
Includes one-time costs
related to repositioning PG&E Corporation's and the Utility's
operating model.
|
|
|
|
(8)
|
PG&E Corporation
recorded tax expense costs of $70 million during the nine months
ended September 30, 2024 associated with the deductibility of
certain customer bill credits issued in connection with the San
Bruno natural gas explosion that occurred in 2010.
|
|
|
|
(9)
|
Includes costs
associated with the 2019 Kincade fire, 2020 Zogg fire, and 2021
Dixie fire, net of recoveries, as shown below.
|
|
(in
millions)
|
Three Months
Ended
September 30, 2024
|
|
Nine Months
Ended
September 30, 2024
|
|
2019 Kincade
fire-related third-party claims
|
$
75
|
|
$
75
|
|
2019 Kincade
fire-related costs
|
2
|
|
6
|
|
2020 Zogg fire-related
insurance recoveries
|
—
|
|
(1)
|
|
2020 Zogg fire-related
legal settlements
|
—
|
|
—
|
|
2021 Dixie
fire-related legal settlements
|
5
|
|
12
|
|
Wildfire-related
costs, net of recoveries
|
$
82
|
|
$
92
|
|
Tax impacts
|
(22)
|
|
(26)
|
|
Wildfire-related
costs, net of recoveries (post-tax)
|
$
60
|
|
$
66
|
|
|
|
(10)
|
"Non-GAAP core
earnings" is a non-GAAP financial measure. See Non-GAAP Financial
Measures below.
|
|
|
Undefined, capitalized
terms have the meanings set forth in PG&E Corporation's and the
Utility's joint Quarterly Report on Form 10-Q for the quarter ended
September 30, 2024.
|
|
PG&E Corporation's
2024 and 2025 Earnings Guidance
|
|
|
2024
|
|
2025
|
|
EPS
guidance
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Estimated EPS on a
GAAP basis
|
~
|
$
1.09
|
|
~
|
$
1.14
|
|
~
|
$
1.30
|
|
~
|
$
1.36
|
|
Estimated non-core
items: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
Wildfire Fund contribution (2)
|
~
|
0.13
|
|
~
|
0.13
|
|
~
|
0.10
|
|
~
|
0.10
|
|
Bankruptcy and legal
costs (3)
|
~
|
0.03
|
|
~
|
0.01
|
|
~
|
0.02
|
|
~
|
0.01
|
|
SB 901 securitization
(4)
|
~
|
0.01
|
|
~
|
0.01
|
|
~
|
0.01
|
|
~
|
0.01
|
|
Investigation remedies
(5)
|
~
|
0.03
|
|
~
|
0.03
|
|
~
|
0.03
|
|
~
|
0.03
|
|
Prior period net
regulatory impact (6)
|
~
|
(0.01)
|
|
~
|
(0.01)
|
|
~
|
(0.01)
|
|
~
|
(0.01)
|
|
Tax-related
adjustments (7)
|
|
0.03
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
Wildfire-related
costs, net of recoveries (8)
|
~
|
0.03
|
|
~
|
0.03
|
|
~
|
0.01
|
|
~
|
0.01
|
|
Estimated EPS on a
non-GAAP core earnings basis
|
~
|
$
1.34
|
|
~
|
$
1.37
|
|
~
|
$
1.47
|
|
~
|
$
1.51
|
|
|
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 2024 and 2025,
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 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.
|
|
2024
|
|
2025
|
|
(in
millions)
|
Low
guidance
range
|
|
High
guidance
range
|
|
Low
guidance
range
|
|
High
guidance
range
|
|
Amortization of
Wildfire Fund contribution
|
~
|
$
375
|
|
~
|
$
375
|
|
~
|
$
310
|
|
~
|
$
310
|
|
Amortization of
Wildfire Fund contribution
|
~
|
$
375
|
|
~
|
$
375
|
|
~
|
$
310
|
|
~
|
$
310
|
|
Tax impacts
|
~
|
(105)
|
|
~
|
(105)
|
|
~
|
(87)
|
|
~
|
(87)
|
|
Amortization of
Wildfire Fund contribution (post-tax)
|
~
|
$
270
|
|
~
|
$
270
|
|
~
|
$
223
|
|
~
|
$
223
|
|
|
|
(3)
|
"Bankruptcy and legal
costs" consists of legal and other costs associated with PG&E
Corporation's and the Utility's Chapter 11 filing.
|
|
2024
|
|
2025
|
|
(in
millions)
|
Low
guidance
range
|
|
High
guidance
range
|
|
Low
guidance
range
|
|
High
guidance
range
|
|
Legal and other
costs
|
~
|
$
90
|
|
~
|
$
45
|
|
~
|
$
65
|
|
~
|
$
20
|
|
Bankruptcy and legal
costs
|
~
|
$
90
|
|
~
|
$
45
|
|
~
|
$
65
|
|
~
|
$
20
|
|
Tax impacts
|
~
|
(25)
|
|
~
|
(13)
|
|
~
|
(18)
|
|
~
|
(6)
|
|
Bankruptcy and legal
costs (post-tax)
|
~
|
$
65
|
|
~
|
$
32
|
|
~
|
$
47
|
|
~
|
$
14
|
|
|
|
(4)
|
"SB 901 securitization"
includes 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. Also included
are any earnings-impacting investment losses or gains associated
with investments related to the contributions to the customer
credit trust.
|
|
|
2024
|
|
|
2025
|
|
(in
millions)
|
Low
guidance
range
|
|
High
guidance
range
|
|
Low
guidance
range
|
|
High
guidance
range
|
|
SB 901 securitization
charge
|
~
|
$
35
|
|
~
|
$
35
|
|
~
|
$
35
|
|
~
|
$
35
|
|
SB 901
securitization
|
~
|
$
35
|
|
~
|
$
35
|
|
~
|
$
35
|
|
~
|
$
35
|
|
Tax impacts
|
~
|
(10)
|
|
~
|
(10)
|
|
~
|
(10)
|
|
~
|
(10)
|
|
SB 901
securitization (post-tax)
|
~
|
$
25
|
|
~
|
$
25
|
|
~
|
$
25
|
|
~
|
$
25
|
|
|
|
(5)
|
"Investigation
remedies" includes costs related to the Paradise restoration and
rebuild, the Wildfires OII decision different, the settlement
agreement resolving the Safety and Enforcement Division's
investigation into the 2020 Zogg fire, and the locate and mark OII
system enhancements.
|
|
2024
|
|
2025
|
|
(in
millions)
|
Low
guidance
range
|
|
High
guidance
range
|
|
Low
guidance
range
|
|
High
guidance
range
|
|
2020 Zogg fire
settlement
|
~
|
$
60
|
|
~
|
$
60
|
|
~
|
$
60
|
|
~
|
$
60
|
|
Wildfires OII
disallowance and system enhancements
|
~
|
10
|
|
~
|
10
|
|
~
|
30
|
|
~
|
30
|
|
Paradise restoration
and rebuild
|
~
|
5
|
|
~
|
5
|
|
~
|
5
|
|
~
|
5
|
|
Locate and mark OII
system enhancements
|
~
|
5
|
|
~
|
5
|
|
~
|
—
|
|
~
|
—
|
|
Investigation
remedies
|
~
|
$
80
|
|
~
|
$
80
|
|
~
|
$
95
|
|
~
|
$
95
|
|
Tax impacts
|
~
|
(21)
|
|
~
|
(21)
|
|
~
|
(27)
|
|
~
|
(27)
|
|
Investigation
remedies (post-tax)
|
~
|
$
59
|
|
~
|
$
59
|
|
~
|
$
68
|
|
~
|
$
68
|
|
|
|
(6)
|
"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.
|
|
2024
|
|
2025
|
|
(in
millions)
|
Low
guidance
range
|
|
High
guidance
range
|
|
Low
guidance
range
|
|
High
guidance
range
|
|
2011-2014 GT&S
capital audit
|
~
|
$
(35)
|
|
~
|
$
(35)
|
|
~
|
$
(20)
|
|
~
|
$
(20)
|
|
Prior period net
regulatory impact
|
~
|
$
(35)
|
|
~
|
$
(35)
|
|
~
|
$
(20)
|
|
~
|
$
(20)
|
|
Tax impacts
|
~
|
10
|
|
~
|
10
|
|
~
|
6
|
|
~
|
6
|
|
Prior period net
regulatory impact (post-tax)
|
~
|
$
(25)
|
|
~
|
$
(25)
|
|
~
|
$
(14)
|
|
~
|
$
(14)
|
|
|
|
(7)
|
"Tax-related
adjustments" includes tax expense costs associated with the
deductibility of certain customer bill credits issued in connection
with the San Bruno natural gas explosion that occurred in 2010. The
after-tax low and high non-core guidance range is $70 million for
2024.
|
|
|
|
(8)
|
"Wildfire-related
costs, net of recoveries" includes costs associated with the 2019
Kincade fire, 2020 Zogg fire, and 2021 Dixie fire, net of
recoveries.
|
|
2024
|
|
2025
|
|
(in
millions)
|
Low
guidance
range
|
|
High
guidance
range
|
|
Low
guidance
range
|
|
High
guidance
range
|
|
2019 Kincade
fire-related third-party claims
|
~
|
$
75
|
|
~
|
$
75
|
|
~
|
$
—
|
|
~
|
$
—
|
|
2019 Kincade
fire-related costs
|
~
|
10
|
|
~
|
10
|
|
~
|
10
|
|
~
|
10
|
|
2020 Zogg fire-related
legal settlements
|
~
|
5
|
|
~
|
5
|
|
~
|
5
|
|
~
|
5
|
|
2020 Zogg fire-related
insurance recoveries
|
~
|
(5)
|
|
~
|
(5)
|
|
~
|
(5)
|
|
~
|
(5)
|
|
2021 Dixie
fire-related legal settlements
|
~
|
15
|
|
~
|
15
|
|
~
|
20
|
|
~
|
20
|
|
Wildfire-related
costs, net of recoveries
|
~
|
$
100
|
|
~
|
$
100
|
|
~
|
$
30
|
|
~
|
$
30
|
|
Tax impacts
|
~
|
(28)
|
|
~
|
(28)
|
|
~
|
(8)
|
|
~
|
(8)
|
|
Wildfire-related
costs, net of recoveries (post-tax)
|
~
|
$
72
|
|
~
|
$
72
|
|
~
|
$
22
|
|
~
|
$
22
|
|
|
Undefined, capitalized
terms have the meanings set forth in PG&E Corporation's and the
Utility's joint Quarterly Report on Form 10-Q for the quarter ended
September 30, 2024.
|
|
|
Non-GAAP Financial
Measures
PG&E Corporation
and Pacific Gas and Electric Company
|
|
Non-GAAP Core Earnings and Non-GAAP Core EPS
"Non-GAAP core earnings" and "Non-GAAP core EPS," also referred
to as "non-GAAP core earnings per share," are non-GAAP financial
measures. Non-GAAP core earnings 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 above. Non-GAAP
core EPS is calculated as non-GAAP core earnings divided by common
shares outstanding on a diluted basis.
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. 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
2026-2028, PG&E Corporation is 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.
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SOURCE PG&E Corporation