Company Announcements

PG&E CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)

(Unaudited)

Three Months Ended March 31,

2025

2024

Operating Revenues

Electric

$                  4,135

$                  4,052

Natural gas

1,848

1,809

Total operating revenues

5,983

5,861

Operating Expenses

Cost of electricity

399

321

Cost of natural gas

496

529

Operating and maintenance

2,646

2,636

Wildfire-related claims, net of recoveries

49

(1)

Wildfire Fund expense

76

78

Depreciation, amortization, and decommissioning

1,097

1,022

Total operating expenses

4,763

4,585

Operating Income

1,220

1,276

Interest income

117

137

Interest expense

(734)

(715)

Other income, net

70

76

Income Before Income Taxes

673

774

Income tax provision

39

39

Net Income

634

735

Preferred stock dividend requirement

27

3

Income Available for Common Shareholders

$                     607

$                     732

Weighted Average Common Shares Outstanding, Basic

2,195

2,134

Weighted Average Common Shares Outstanding, Diluted

2,200

2,139

Net Income Per Common Share, Basic

$                    0.28

$                    0.34

Net Income Per Common Share, Diluted

$                    0.28

$                    0.34

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, 2025 vs. 2024

Three Months Ended

March 31,

Earnings

Earnings per
Common
Share

(in millions, except per share amounts)

2025

2024

2025

2024

PG&E Corporation's earnings/EPS on a GAAP basis

$  607

$  732

$ 0.28

$ 0.34

Non-core items: ⁽¹⁾

Amortization of Wildfire Fund contribution ⁽²⁾

55

56

0.03

0.03

Bankruptcy and legal costs ⁽³⁾

5

12

—

0.01

Investigation remedies ⁽⁴⁾

19

4

0.01

—

Prior period net regulatory impact ⁽⁵⁾

(6)

(6)

—

—

SB 901 securitization ⁽⁶⁾

7

(2)

—

—

Wildfire-related costs, net of recoveries ⁽⁷⁾

40

4

0.02

—

PG&E Corporation's non-GAAP core earnings/EPS ⁽⁸⁾

$  728

$  800

$ 0.33

$ 0.37

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 2025 and 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, consisting of the items listed in the table above. See Non-GAAP Financial Measures below.

(2)

The Utility recorded costs of $76 million (before the tax impact of $21 million) during the three months ended March 31, 2025, associated with the amortization of the Wildfire Fund asset, as well as accretion of the related Wildfire Fund liability. For more information, see Note 2 of the Notes to the Condensed Consolidated Financial Statements in the Form 10-Q.

(3)

PG&E Corporation and the Utility recorded costs of $6 million (before the tax impact of $1 million) during the three months ended March 31, 2025, related to costs to resolve proof of claims filed in PG&E Corporation's and the Utility's Chapter 11 filing.

(4)

Includes costs associated with the decision different for the order instituting investigation ("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
March 31, 2025

Wildfires OII disallowance and system enhancements

$                                     5

Locate and mark OII system enhancements

1

Paradise restoration and rebuild

1

2020 Zogg fire settlement

14

Investigation remedies

$                                   20

Tax impacts

(1)

Investigation remedies (post-tax)

$                                   19

(5)

The Utility recorded benefits of $8 million (before the tax impact of $2 million) during the three months ended March 31, 2025 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.

(6)

The Utility recorded costs of $10 million (before the tax impact of $3 million) during the three months ended March 31, 2025, related to the charge for 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, as well as any earnings-impacting investment losses or gains associated with investments related to the contributions to the customer credit trust. Formerly referred to as "Fire Victim Trust tax benefit net of securitization."

(7)

Includes costs to resolve third-party claims, net of recoveries, for the 2019 Kincade fire and 2021 Dixie fire, inclusive of outside counsel fees, as shown below.

(in millions)

Three Months Ended
March 31, 2025

2019 Kincade fire

$                                   51

2021 Dixie fire

4

Wildfire-related costs, net of recoveries

$                                   55

Tax impacts

(15)

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

$                                   40

(8)

"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 March 31, 2025.

PG&E Corporation's 2025 Earnings Guidance

2025

EPS guidance

Low

High

Estimated EPS on a GAAP basis

~

$        1.29

~

$        1.35

Estimated non-core items: ⁽¹⁾

Amortization of Wildfire Fund contribution ⁽²⁾

~

0.10

~

0.10

Bankruptcy and legal costs ⁽³⁾

~

0.02

~

0.01

Investigation remedies ⁽⁴⁾

~

0.04

~

0.04

Prior period net regulatory impact ⁽⁵⁾

~

(0.01)

~

(0.01)

SB 901 securitization ⁽⁶⁾

~

0.01

~

0.01

Wildfire-related costs, net of recoveries ⁽⁷⁾

~

0.02

~

0.02

Estimated EPS on a non-GAAP core earnings basis

~

$        1.48

~

$        1.52

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 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. All adjustments related to such non-core items in the table above are presented on a diluted per-share basis.

(2)

"Amortization of Wildfire Fund contribution" represents the amortization of the Wildfire Fund asset, as well as accretion of the related Wildfire Fund liability. For more information, see Note 2 of the Notes to the Condensed Consolidated Financial Statements in the Form 10-Q.

2025

(in millions)

Low
guidance
range

High
guidance
range

Amortization of Wildfire Fund contribution

~

$         310

~

$         310

Amortization of Wildfire Fund contribution

~

$         310

~

$         310

Tax impacts

~

(87)

~

(87)

Amortization of Wildfire Fund contribution (post-tax)

~

$         223

~

$         223

(3)

"Bankruptcy and legal costs" consists of costs to resolve proof of claims filed in PG&E Corporation's and the Utility's Chapter 11 filing.

2025

(in millions)

Low
guidance
range

High
guidance
range

Legal and other costs

~

$            65

~

$            20

Bankruptcy and legal costs

~

$            65

~

$            20

Tax impacts

~

(18)

~

(6)

Bankruptcy and legal costs (post-tax)

~

$            47

~

$            14

(4)

"Investigation remedies" includes the settlement agreement resolving the Safety and Enforcement Division's investigation into the 2020 Zogg fire, the Wildfires OII decision different, and costs related to the Paradise restoration and rebuild.

2025

(in millions)

Low
guidance
range

High
guidance
range

2020 Zogg fire settlement

~

$            60

~

$            60

Wildfires OII disallowance and system enhancements

~

30

~

30

Paradise restoration and rebuild

~

5

~

5

Investigation remedies

~

$            95

~

$            95

Tax impacts

~

(7)

~

(7)

Investigation remedies (post-tax)

~

$            88

~

$            88

(5)

"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.

2025

(in millions)

Low
guidance
range

High
guidance
range

2011-2014 GT&S capital audit

~

$          (20)

~

$          (20)

Prior period net regulatory impact

~

$          (20)

~

$          (20)

Tax impacts

~

6

~

6

Prior period net regulatory impact (post-tax)

~

$          (14)

~

$          (14)

(6)

"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.

2025

(in millions)

Low
guidance
range

High
guidance
range

SB 901 securitization charge

~

$            35

~

$            35

SB 901 securitization

~

$            35

~

$            35

Tax impacts

~

(10)

~

(10)

SB 901 securitization (post-tax)

~

$            25

~

$            25

(7)

"Wildfire-related costs, net of recoveries" includes costs to resolve third-party claims, net of recoveries, for the 2019 Kincade fire and 2021 Dixie fire, inclusive of outside counsel fees.

2025

(in millions)

Low
guidance
range

High
guidance
range

2019 Kincade fire

~

$            57

~

$            57

2021 Dixie fire

~

18

~

18

Wildfire-related costs, net of recoveries

~

$            75

~

$            75

Tax impacts

~

(21)

~

(21)

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

~

$            54

~

$            54