PG&E CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Operating Revenues

Electric

$                4,458

$                3,852

$              8,510

$              7,971

Natural gas

1,528

1,438

3,337

3,528

Total operating revenues

5,986

5,290

11,847

11,499

Operating Expenses

Cost of electricity

763

672

1,084

1,194

Cost of natural gas

204

274

733

1,190

Operating and maintenance

2,757

2,436

5,393

5,113

SB 901 securitization charges, net

—

289

—

562

Wildfire-related claims, net of recoveries

(3)

(1)

(4)

(3)

Wildfire Fund expense

78

117

156

234

Depreciation, amortization, and decommissioning

1,053

997

2,075

2,074

Total operating expenses

4,852

4,784

9,437

10,364

Operating Income

1,134

506

2,410

1,135

Interest income

202

143

339

255

Interest expense

(812)

(640)

(1,527)

(1,242)

Other income, net

82

66

158

151

Income Before Income Taxes

606

75

1,380

299

Income tax provision (benefit)

82

(335)

121

(683)

Net Income

524

410

1,259

982

Preferred stock dividend requirement of subsidiary

4

4

7

7

Income Available for Common Shareholders

$                   520

$                   406

$              1,252

$                  975

Weighted Average Common Shares Outstanding, Basic

2,137

2,019

2,136

2,005

Weighted Average Common Shares Outstanding, Diluted

2,142

2,139

2,141

2,137

Net Income Per Common Share, Basic

$                  0.24

$                  0.20

$                 0.59

$                 0.49

Net Income Per Common Share, Diluted

$                  0.24

$                  0.19

$                 0.58

$                 0.46

Three Months Ended

June 30,

Six Months Ended

June 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

$  520

$  406

$ 0.24

$ 0.19

$  1,252

$  975

$ 0.58

$ 0.46

Non-core items: ⁽¹⁾

Amortization of Wildfire Fund contribution ⁽²⁾

56

84

0.03

0.04

112

169

0.05

0.08

Bankruptcy and legal costs ⁽³⁾

13

17

0.01

0.01

25

33

0.01

0.02

Fire Victim Trust tax benefit net of securitization ⁽⁴⁾

3

(65)

—

(0.03)

1

(139)

—

(0.07)

Investigation remedies ⁽⁵⁾

15

2

0.01

—

19

17

0.01

0.01

Prior period net regulatory impact ⁽⁶⁾

(6)

(6)

—

—

(12)

(12)

(0.01)

(0.01)

Strategic repositioning costs ⁽⁷⁾

—

1

—

—

—

2

—

—

Tax-related adjustments ⁽⁸⁾

70

—

0.03

—

70

—

0.03

—

Wildfire-related costs, net of insurance ⁽⁹⁾

4

55

—

0.03

8

64

—

0.03

PG&E Corporation’s non-GAAP core earnings/EPS ⁽¹⁰⁾

$  674

$  494

$ 0.31

$ 0.23

$  1,474

$  1,109

$ 0.69

$ 0.52

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 $78 million (before the tax impact of $22 million) and $156 million (before the tax impact of $44 million) during the three and six months ended June 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 $18 million (before the tax impact of $5 million) and $35 million (before the tax impact of $10 million) during the three and six months ended June 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 $4 million (before the tax impact of $1 million) and $1 million (before the tax impact of $0 million) during the three months and six months ended June 30, 2024, respectively, related to any earnings-impacting investment losses or gains associated with investments related to the contributions to the customer credit trust. Previously included 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 and tax benefits related to the Fire Victim’s Trust’s sale of PG&E corporation common stock.

(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

June 30, 2024

Six Months Ended

June 30, 2024

Wildfires OII disallowance and system enhancements

$                                     2

$                                     3

Locate and mark OII system enhancements

1

1

Paradise restoration and rebuild

1

2

2020 Zogg fire settlement

13

14

Investigation remedies

$                                   16

$                                   20

Tax impacts

(1)

(1)

Investigation remedies (post-tax)

$                                   15

$                                   19

(6)

The Utility recorded $8 million (before the tax impact of $2 million) and $16 million (before the tax impact of $4 million) during the three and six months ended June 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 three and six months ended June 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 insurance, as shown below.

(in millions)

Three Months Ended

June 30, 2024

Six Months Ended

June 30, 2024

2019 Kincade fire-related costs

$                                     2

$                                    5

2020 Zogg fire-related insurance recoveries

—

(1)

2020 Zogg fire-related legal settlements

(1)

—

2021 Dixie fire-related legal settlements

5

7

Wildfire-related costs, net of insurance

$                                     6

$                                  11

Tax impacts

(2)

(3)

Wildfire-related costs, net of insurance (post-tax)

$                                     4

$                                    8

(10)

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 June 30, 2024.

2024

EPS guidance

Low

High

Estimated EPS on a GAAP basis

~

$        1.11

~

$        1.17

Estimated non-core items: ⁽¹⁾

Amortization of Wildfire Fund contribution ⁽²⁾

~

0.10

~

0.10

Bankruptcy and legal costs ⁽³⁾

~

0.03

~

0.01

SB 901 securitization ⁽⁴⁾

~

0.01

~

0.01

Investigation remedies ⁽⁵⁾

~

0.04

~

0.04

Prior period net regulatory impact ⁽⁶⁾

~

(0.01)

~

(0.01)

Tax-related adjustments ⁽⁷⁾

0.03

0.03

Wildfire-related costs, net of insurance ⁽⁸⁾

~

0.01

~

0.01

Estimated EPS on a non-GAAP core earnings basis

~

$        1.33

~

$        1.37

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, 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

(in millions)

Low

guidance

range

High

guidance

range

Amortization of Wildfire Fund contribution

~

$         305

~

$         305

Amortization of Wildfire Fund contribution

~

$         305

~

$         305

Tax impacts

~

(85)

~

(85)

Amortization of Wildfire Fund contribution (post-tax)

~

$         220

~

$         220

“Bankruptcy and legal costs” consists of legal and other costs associated with PG&E Corporation’s and the Utility’s Chapter 11 filing.

2024

(in millions)

Low

guidance

range

High

guidance

range

Legal and other costs

~

$            90

~

$            45

Bankruptcy and legal costs

~

$            90

~

$            45

Tax impacts

~

(25)

~

(13)

Bankruptcy and legal costs (post-tax)

~

$            65

~

$            32

(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

(in millions)

Low

guidance

range

High

guidance

range

SB 901 securitization charge

~

$            33

~

$            33

Net gains related to customer credit trust

~

(3)

~

(3)

SB 901 securitization

~

$            30

~

$            30

Tax impacts

~

(8)

~

(8)

SB 901 securitization (post-tax)

~

$            22

~

$            22

(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

(in millions)

Low

guidance

range

High

guidance

range

2020 Zogg fire settlement

~

$            58

~

$            58

Wildfires OII disallowance and system enhancements

~

40

~

40

Paradise restoration and rebuild

~

10

~

10

Locate and mark OII system enhancements

~

5

~

5

Investigation remedies

~

$         113

~

$         113

Tax impacts

~

(30)

~

(30)

Investigation remedies (post-tax)

~

$            83

~

$            83

(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

(in millions)

Low

guidance

range

High

guidance

range

2011-2014 GT&S capital audit

~

$          (35)

~

$          (35)

Prior period net regulatory impact

~

$          (35)

~

$          (35)

Tax impacts

~

10

~

10

Prior period net regulatory impact (post-tax)

~

$          (25)

~

$          (25)

(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 insurance” includes legal and other costs associated with the 2019 Kincade fire, 2020 Zogg fire, and 2021 Dixie fire, net of insurance.

2024

(in millions)

Low

guidance

range

High

guidance

range

2019 Kincade fire-related costs

~

$            15

~

$            15

2020 Zogg fire-related legal settlements

~

5

~

5

2020 Zogg fire-related insurance recoveries

~

—

~

(5)

2021 Dixie fire-related legal settlements

~

15

~

15

Wildfire-related costs, net of insurance

~

$            35

~

$            30

Tax impacts

~

(10)

~

(8)

Wildfire-related costs, net of insurance (post-tax)

~

$            25

~

$            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 June 30, 2024.

Non-GAAP Financial Measures

PG&E Corporation and Pacific Gas and Electric Company