Core Insights - PG&E CEO Patti Poppe discussed the company's third-quarter earnings and its strategic initiatives in AI and wildfire preparedness [1] Financial Performance - The company reported its third-quarter earnings, highlighting key financial metrics and performance indicators [1] AI Initiatives - PG&E is actively involved in the AI buildout, indicating a commitment to leveraging technology for operational improvements [1] Wildfire Preparedness - The company is making preparations for potential wildfires, emphasizing its focus on safety and risk management [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 are $0.50, and $1.14 for the first nine months of 2025, with full-year guidance narrowed to a range of $1.49-$1.51, reflecting a 10% increase over 2024 [4][14] - The company introduced 2026 EPS guidance of $1.62-$1.66, indicating a 9% increase from the 2025 midpoint [4] - The five-year capital plan through 2030 is set at $73 billion, supporting average annual rate base growth of 9% [4][15] Business Line Data and Key Metrics Changes - The company has constructed and energized 1,000 miles of power lines underground in high fire-risk areas, marking a significant milestone [8] - Vegetation clearance around nearly 4,000 transmission structures has been completed, which is expected to contain most transmission-related ignitions [8] - The deployment of 8,500 new sensor devices this year builds on the previous year's rollout of 10,000 devices, enhancing system monitoring capabilities [9] Market Data and Key Metrics Changes - The data center pipeline remains robust at over 9.5 GW, with modest net attrition in applications since June, while projects in the final engineering stage continue to grow [11] - The company is focused on attracting data centers designed to support AI inference models, benefiting from Northern California's existing fiber network [12] Company Strategy and Development Direction - The company is committed to a disciplined capital allocation approach, with a focus on safety, reliability, and resiliency improvements while enabling economic growth [16][18] - The strategy includes a no-big-bets plan that emphasizes customer beneficial investments and maintaining investment-grade ratings [17][21] - The company aims to keep customer bills flat to down by 2027 through operational efficiencies and cost reductions [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the effectiveness of physical risk mitigation measures, with a 35% reduction in CPUC-reportable ignitions year-to-date compared to 2024 [7] - The company is optimistic about the legislative process regarding wildfire risk mitigation and the potential for constructive legislation [5][22] - Management emphasized the importance of maintaining a conservative planning approach to ensure consistent delivery for customers and investors [70] Other Important Information - The company is targeting a dividend payout ratio of 20% by 2028, with plans to maintain that level through 2030 [17][78] - Fitch has upgraded the company's parent rating to investment grade, indicating positive momentum in credit ratings [21] Q&A Session Summary Question: Updates on SB 254 process - Management provided timeline details for stakeholder abstracts and final recommendations, indicating key dates for the process [26] Question: Cost of capital case status - Management confirmed that a proposed decision is expected in November 2025, with confidence in the strength of their case [27] Question: Policy reform recommendations for SB 254 - Management highlighted significant improvements from phase one and expressed optimism about the governor's commitment to phase two [36][38] Question: Undergrounding decision timeline - Management confirmed that final recommendations on the 10-year undergrounding procedure are on the agenda for the upcoming commission meeting [39] Question: Credit agency conversations - Management indicated ongoing positive discussions with Moody's and S&P, with progress on phase two being a significant trigger for potential upgrades [61] Question: O&M cost reduction targets - Management expressed confidence in meeting or exceeding the 2% reduction target for O&M costs this year [63] Question: Comfort with 2026 EPS guidance - Management reassured that conservative planning is in place, regardless of the cost of capital proceeding outcomes [70] Question: Energy storage project as a blueprint - Management expressed excitement about the CRC energy storage microgrid project and its potential for replication in other communities [72]

Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 are $0.50, and $1.14 for the first nine months of 2025, with full-year guidance narrowed to a range of $1.49 to $1.51, reflecting a 10% increase over 2024 [4][14] - The company introduced 2026 EPS guidance of $1.62 to $1.66, indicating a 9% increase from the 2025 midpoint [4] Business Line Data and Key Metrics Changes - The company reported a 35% reduction in CPUC-reportable ignitions year-to-date compared to 2024, achieving zero structures destroyed due to CPUC-reportable fires in high fire-risk areas for three consecutive years [7][8] - PG&E has constructed and energized 1,000 miles of power lines underground in high fire-risk areas, with a 25% lower cost than previous efforts [8][41] Market Data and Key Metrics Changes - The data center pipeline remains robust at over 9.5 gigawatts, with modest net attrition in applications but growth in projects at the final engineering stage [11][12] - The company anticipates that every gigawatt brought online could reduce electric bills by 1% to 2% [13] Company Strategy and Development Direction - PG&E's five-year capital plan through 2030 totals $73 billion, supporting average annual rate base growth of 9% and EPS growth of at least 9% [4][15] - The company is focused on waste elimination and cost reduction, targeting a 2% O&M cost reduction goal [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing legislative process regarding wildfire risk mitigation and the potential for constructive legislation [5][22] - The company is committed to maintaining investment-grade ratings and has received an upgrade from Fitch, indicating positive momentum in credit ratings [21][62] Other Important Information - The company is prioritizing safety and resilience through various initiatives, including advanced sensor capabilities and vegetation management around transmission structures [9][10] - PG&E's financing plan does not require new equity through 2030, which is crucial given current market conditions [16][17] Q&A Session Summary Question: Updates on SB 254 process - Management provided timeline details for stakeholder abstracts and final recommendations, indicating key dates for the process [26] Question: Cost of capital case status - Management confirmed that a proposed order is expected in November 2025, with confidence in their case [27] Question: Policy reform recommendations and legislative buy-in - Management highlighted significant improvements from phase one of SB 254 and expressed optimism about the governor's commitment to phase two [36][38] Question: Undergrounding decision timeline - Management confirmed that final recommendations on the 10-year undergrounding procedure are on the agenda for an upcoming commission meeting [39] Question: Data center pipeline reduction - Management noted that the most important numbers are those closer to construction, with expectations for significant online capacity by 2030 [51] Question: Credit agency conversations - Management shared ongoing discussions with Moody's and S&P, emphasizing the importance of progress on phase two for potential upgrades [62] Question: O&M cost reduction targets - Management expressed confidence in meeting the 2% reduction target for the year, with no current plans to raise that target [64] Question: Comfort with 2026 EPS guidance - Management reassured that they plan conservatively and are prepared for various scenarios [72] Question: Energy storage project as a blueprint - Management indicated excitement about the CRC energy storage microgrid project and plans for similar installations in other communities [74] Question: Dividend payout ratio beyond 2028 - Management confirmed plans to maintain a 20% payout ratio through 2030 [80]

Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 are $0.50, and $1.14 for the first nine months of 2025, with full-year guidance narrowed to a range of $1.49 to $1.51, reflecting a 10% increase over 2024 [4] - The 2026 EPS guidance range is introduced at $1.62 to $1.66, indicating a 9% increase from the 2025 midpoint [4] - The five-year capital plan through 2030 is set at $73 billion, supporting average annual rate base growth of 9% [4][15] Business Line Data and Key Metrics Changes - The company has achieved a 35% reduction in CPUC-reportable ignitions year-to-date compared to 2024, with zero structures destroyed in high fire-risk areas for three consecutive years [6] - PG&E has constructed and energized 1,000 miles of underground power lines in high fire-risk areas, which is considered the most effective mitigation strategy [7][35] - The company is deploying advanced sensor capabilities, with an additional 8,500 sensors installed this year, building on the previous year's rollout [8] Market Data and Key Metrics Changes - The data center pipeline remains robust at over 9.5 gigawatts, with modest net attrition in applications since June, but growth in projects at the final engineering stage [10] - The service area is positioned as a prime location for data centers, benefiting from proximity to the technology sector in Silicon Valley [11] Company Strategy and Development Direction - The company is focused on collaborating with state agencies to mitigate climate-driven wildfire risks, with a report expected to inform legislative action in 2026 [5] - PG&E's strategy includes a disciplined approach to capital allocation, prioritizing investment-grade ratings and maintaining a dividend payout ratio of 20% by 2028 [17][46] - The company emphasizes a performance playbook aimed at waste elimination to improve outcomes for customers and investors [18] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in the effectiveness of their physical risk mitigation strategies and the positive momentum from recent legislative actions [21] - The company plans conservatively, ensuring readiness to deliver consistent results despite a challenging regulatory environment [55] - Management highlights the importance of the upcoming CEA report and its potential impact on future policy and operational strategies [32] Other Important Information - The company has achieved non-fuel O&M savings exceeding targets for three consecutive years, with a goal of a 2% reduction for the current year [19] - Fitch has upgraded the company's parent rating to investment grade, with expectations for further upgrades from other agencies contingent on regulatory progress [20][46] Q&A Session Summary Question: Updates on SB 254 process - Management provided milestone dates for the SB 254 process, including stakeholder abstracts due November 3 and final recommendations by January 30 [24] Question: Cost of capital case status - The proposed decision on the cost of capital is expected in November 2025, with management confident in their case [25] Question: Policy reform recommendations for phase two - Management discussed the improvements from phase one of SB 254 and the governor's commitment to a comprehensive approach to wildfire risk [31] Question: Undergrounding decision timeline - The final recommendations on the 10-year undergrounding procedure are on the agenda for the upcoming commission meeting, with management advocating for undergrounding in high-risk areas [34] Question: Credit rating conversations - Management is in discussions with Moody's and S&P, with progress on phase two being a significant trigger for potential upgrades [46] Question: O&M cost target adjustments - Management expressed confidence in meeting the 2% reduction target but is not considering raising it at this time [48] Question: 2026 EPS guidance comfort level - Management reassured that they plan conservatively and are prepared to deliver consistent results despite uncertainties [55] Question: CRC energy storage microgrid project - Management is excited about the CRC project and plans to replicate similar installations in other communities [56]

Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 are $0.50, and $1.14 for the first nine months of 2025, with full-year guidance narrowed to a range of $1.49 to $1.51, reflecting a 10% increase over 2024 [5][17] - The 2026 EPS guidance range is introduced at $1.62 to $1.66, indicating a 9% increase from the 2025 midpoint [6] Business Line Data and Key Metrics Changes - The company has achieved significant operational and maintenance (O&M) cost savings, contributing $0.05 for the quarter and $0.08 year-to-date, with ongoing unit cost reductions [18] - The five-year capital plan remains at $73 billion, supporting average annual rate base growth of approximately 9% from 2026 to 2030 [20] Market Data and Key Metrics Changes - PG and E's data center pipeline remains robust at over 9.5 gigawatts, with modest net attrition in applications but growth in projects at the final engineering stage [14] - The company has constructed and energized 1,000 miles of power lines underground in high fire risk areas, marking a significant milestone [10] Company Strategy and Development Direction - The company is focused on mitigating climate-driven wildfire risks and enhancing safety measures, with a commitment to undergrounding as a key strategy [7][10] - The capital investment plan includes projects to improve safety, reliability, and resiliency, while enabling economic growth through capacity upgrades [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the effectiveness of their wildfire risk mitigation strategies, noting a 35% reduction in reportable ignitions year-to-date compared to 2024 [7][8] - The company is optimistic about the legislative process regarding wildfire fund reforms and the potential for constructive outcomes in 2026 [39][42] Other Important Information - The company aims to maintain a dividend payout ratio of 20% by 2028, which will provide financing flexibility and support investment-grade ratings [23] - Fitch has upgraded the company's parent rating to investment grade, reflecting improved credit metrics [26] Q&A Session Summary Question: Updates on SB 254 process - Management indicated that stakeholder abstracts are due November 3, with full submissions by December 12, and final recommendations by January 30 [30][31] Question: Cost of capital case status - Management confirmed that they are awaiting the proposed decision expected in November 2025 [33] Question: Policy reform recommendations for April - Management highlighted significant improvements from Phase 1 of SB 254 and expressed optimism about the governor's commitment to wildfire risk management [39][41] Question: Undergrounding decision timeline - Management confirmed that final recommendations on the ten-year undergrounding procedure are on the agenda for the upcoming commission meeting [44] Question: Credit agency conversations - Management reported ongoing positive discussions with Moody's and S&P, with a focus on progress in Phase 2 as a potential trigger for upgrades [65] Question: O&M cost target adjustments - Management expressed confidence in meeting the 2% reduction target but is not currently considering raising it [68] Question: Comfort with 2026 EPS guidance - Management reassured that they plan conservatively and are prepared to deliver consistent results despite regulatory uncertainties [75] Question: Storage project as a blueprint - Management is excited about the CRC Energy Storage microgrid project and plans to replicate similar installations in other communities [76] Question: Dividend payout ratio beyond 2028 - Management confirmed the plan to maintain a 20% payout ratio through 2030 [80]

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2025 THIRD QUARTER EARNINGS Delivering For Customers AND Investors October 23, 2025 1 Forward-Looking Statements Planning For Wide-Ranging Wildfire Policy Reform… This presentation and the oral remarks made in connection with it contain statements regarding PG&E Corporation's and Pacific Gas and Electric Company's (the "Utility") future performance, including expectations, objectives, and forecasts about operating results (including 2025 and 2026 non-GAAP core earnings), debt and equity issuances, refinanci ...

Core Insights - The U.S. stock market is at a critical inflection point, influenced by a government shutdown and economic uncertainty, while the utility sector is experiencing a resurgence due to AI and data-driven infrastructure [1][2] Utility Sector Performance - The utility sector is witnessing record electricity demand, primarily driven by data centers, which is expected to enhance load growth and top-line growth for major utilities in Q3 [2][6] - U.S. power demand increased by 2.3% year-over-year through September, largely attributed to growth in data center hubs [7] Earnings Outlook - The total earnings for the utility sector are projected to decline by 2.4% despite a revenue growth of 5.8% in Q3 [10] - PG&E Corp is expected to report earnings of 46 cents per share on revenues of $6.55 billion, indicating a year-over-year bottom-line growth of 24.3% and top-line improvement of 10.2% [10] - CenterPoint Energy is anticipated to report earnings of 46 cents per share on revenues of $1.98 billion, suggesting a year-over-year bottom-line growth of 48.4% and top-line improvement of 6.6% [11] Financial Considerations - The utility sector is capital-intensive, and while recent Federal Reserve rate cuts may provide some relief, the cost of debt for funding infrastructure projects remains a critical concern [8][9] - Higher interest expenses may have negatively impacted the sector's bottom line, necessitating close monitoring of how utilities manage their balance sheets and growth funding [9][13] Investment Opportunities - The current environment presents a timely opportunity for ETF investors to evaluate funds positioned to benefit from the utility sector's performance amid electrification and AI expansion [3][14] - ETFs such as Utilities Select Sector SPDR Fund, Vanguard Utilities ETF, and others provide exposure to the sector's long-term growth story while mitigating risks associated with individual companies [14]

PG&E (PCG) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +13.64%. A quarter ago, it was expected that this utility holding company would post earnings of $0.33 per share when it actually produced earnings of $0.31, delivering a surprise of -6.06%.Over the last four quarters, the comp ...