Pacific Gas & Electric Q4 Earnings Call Highlights

Operational Performance - The company achieved best-ever safety metrics in 2025, with a 43% reduction in serious injuries and fatalities compared to 2024 and a 30% improvement in serious preventable motor vehicle incidents [1] - System-wide performance measured by SAIDI improved by 19% year-over-year [1] - The company reported full-year 2025 core earnings of $1.50 per share, marking a 10% growth from 2024 and the fourth consecutive year of double-digit core EPS growth [2] Financial Guidance - The company is raising and tightening its 2026 core EPS guidance range, increasing the low end by $0.02 to a new range of $1.64 to $1.66, implying 10% EPS growth at the midpoint [1] - The long-term growth outlook is reaffirmed at 9%+ annually from 2027 through 2030 [1] Affordability and Rate Reductions - Bundled residential electric rates are approximately 11% lower compared to January 2024, translating to about $20 savings per month for a typical customer [3][9] - The company targets a future bill trajectory of 0% to 3%, supported by 2-4% O&M savings and accelerating data-center load [3][10] Wildfire Mitigation and Safety Initiatives - Ignitions were down 43% in 2025, contributing to a third consecutive year without a major fire caused by PG&E equipment [5] - The company launched Emberpoint in collaboration with Lockheed Martin to enhance wildfire detection and mitigation capabilities [6] - PG&E is a main sponsor of XPRIZE Wildfire, focusing on systems designed to detect and suppress high-risk fires [6] Infrastructure and Load Growth - The California Public Utilities Commission approved revised guidelines for utility undergrounding plans, allowing PG&E to file for approximately 5,000 additional miles of undergrounding over 10 years starting in 2028 [7] - Projects in the final engineering stage now total nearly 3.6 gigawatts, with expectations for load growth including 1.8 gigawatts online by 2030 [12][13] Capital Plan and Financing - The company maintains a $73 billion five-year capital plan with no new common equity required through 2030 [14][15] - The annual share dividend is doubled to $0.20 for 2026, with expectations for consistent increases in the next two years [15] - Fitch upgraded PG&E to investment grade, with Moody's and S&P indicating financial metrics are meeting investment-grade criteria [16] Regulatory and Legislative Developments - The company is engaged in wildfire liability reform discussions, with a report and recommendations expected by April 1 [17] - PG&E is seeking review of costs related to wildfire incidents, with claims exceeding $1 billion [19]