PG&E Corporation Investor Update Conference Call Summary Company Overview - **Company**: PG&E Corporation (NYSE: PCG) - **Date of Call**: September 29, 2025 Key Industry and Legislative Developments - **Legislation**: Senate Bill 254 was signed into law on September 19, 2025, aimed at improving the framework for utility liability related to climate-driven wildfires [3][4] - **Financial Measures**: SB 254 establishes an $18 billion continuation account to cover future wildfire claims, providing timely compensation for victims and smoothing bill impacts for customers [4][5] - **Utility Contributions**: PG&E's share of contributions to the continuation account will decrease from $193 million to $144 million annually starting in 2029, reflecting a 25% reduction [5] Financial Outlook and Performance - **Earnings Guidance**: PG&E's non-GAAP core EPS guidance for 2025 is $1.48 to $1.52, representing a 10% increase over 2024 [14] - **Long-term Growth**: Projected average annual core EPS growth of at least 9% from 2026 through 2030, supported by a 9% annual rate base growth during the same period [12][15] - **Capital Investment**: PG&E plans to invest approximately $73 billion over the next five years, including $2.9 billion for wildfire mitigation capital expenditures [15] Capital Allocation and Shareholder Returns - **Dividend Policy**: PG&E targets a dividend payout ratio of 20% by 2028, maintaining this level through 2030 [17] - **Stock Repurchase Consideration**: If stock prices remain depressed and no significant policy reforms occur, PG&E may consider opportunistic stock repurchases, pending board approval [11][22] Wildfire Mitigation and Community Impact - **Mitigation Efforts**: PG&E is committed to ongoing wildfire mitigation efforts, including undergrounding power lines and enhancing grid safety to support new developments [12][54] - **Community Hardening**: Emphasis on community hardening to prevent wildfire spread, which is crucial for addressing California's housing crisis and ensuring insurability [29][54] Regulatory and Legislative Engagement - **Future Legislative Actions**: PG&E anticipates further legislative discussions in 2026 regarding comprehensive wildfire reform, focusing on liability socialization and community resilience [7][8][28] - **Cost of Capital**: PG&E is actively engaged in discussions regarding its cost of capital, with expectations for adjustments based on ongoing regulatory processes [45][58] Conclusion - **Commitment to Stakeholders**: PG&E emphasizes its dedication to serving customers and maintaining financial performance while navigating regulatory challenges and capital allocation strategies [61]