2025 SECOND QUARTER EARNINGS Delivering For Customers AND Investors July 31, 2025 1 Forward-Looking Statements 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 non-GAAP core earnings), debt and equity issuances, refinancing activity, rate base growth, capital expenditures, cash flo ...

Financial Data and Key Metrics Changes - American Electric Power (AEP) reported the strongest second quarter operating earnings in its 100-year history, with operating earnings of $1.43 per share or $766 million, representing a 14% increase year-over-year from $1.25 per share in 2024 [9][27][28] - The company is guiding to the upper half of its 2025 operating earnings range of $5.75 to $5.95 per share, reflecting strong year-to-date results and confidence in future execution [10][40] Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities increased to $0.56 per share, up $0.10 from the previous year, driven by rate changes and increased load from data centers [29] - The transmission and distribution utility segment earned $0.42 per share, up $0.01 from last year, supported by rate changes and retail sales gains [29] - Generation and Marketing produced $0.17 per share, up $0.05 from last year, with favorable energy margins offset by lower distributed generation margins due to the sale of the On-site Partners business [31] Market Data and Key Metrics Changes - AEP is experiencing transformative load growth across its 11-state footprint, with an increase in firm customer commitments to 24 gigawatts of incremental load by the end of the decade, up from 21 gigawatts previously reported [12][34] - The company has a significant interconnection queue of approximately 190 gigawatts of additional load seeking to connect to its system, indicating strong demand for its services [12][35] Company Strategy and Development Direction - AEP is executing a $54 billion capital plan and expects to announce a new five-year capital plan of approximately $70 billion, with allocations of 50% to transmission, 40% to generation, and 10% to distribution [11][37] - The company is focused on aligning its business with regulatory goals and has secured large load tariffs in multiple states to support economic development and infrastructure needs [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, emphasizing a culture of accountability and performance [10][26] - The company is committed to maintaining safety, service, reliability, and constructive regulatory outcomes, with significant progress made in legislative efforts and regulatory approvals [18][21] Other Important Information - AEP Texas was granted an ERCOT Permian Basin 765 kV transmission project, and several system resiliency plans received approval, reflecting collaborative efforts with regulators [19][20] - The company is exploring innovative energy solutions, including small modular reactors (SMRs) and Bloom fuel cells, to meet growing power demands [17][58] Q&A Session Summary Question: CapEx increase and financing needs - Management indicated that they have proactively financed the existing capital plan and do not foresee immediate equity needs, providing flexibility for future financing strategies [45][46][49] Question: ROE trajectory and impact of regulatory changes - Management expects an increase in ROE due to the implementation of the Unified Tracker Mechanism in Texas, which could raise ROEs by 50 to 100 basis points [52] Question: Plans for small modular reactors (SMRs) - The focus is currently on early site permit work in Virginia and Indiana, with strong regulatory support for investments [58][59] Question: Update on West Virginia case - The West Virginia case is awaiting an order expected in late August or early September, with positive engagement from stakeholders [64] Question: Future CapEx opportunities - Management sees continued opportunities for investment driven by significant load growth and economic activity across its service territory [71][72]

Group 1 - American Electric Power (AEP) reported quarterly earnings of $1.43 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, and up from $1.25 per share a year ago, representing an earnings surprise of +11.72% [1] - AEP's revenues for the quarter ended June 2025 were $5.09 billion, surpassing the Zacks Consensus Estimate by 2.92%, and an increase from $4.58 billion year-over-year [2] - AEP has outperformed the S&P 500 with an 18.4% increase in shares since the beginning of the year, compared to the S&P 500's gain of 8.3% [3] Group 2 - The current consensus EPS estimate for AEP is $1.88 on revenues of $5.84 billion for the coming quarter, and $5.85 on revenues of $21.11 billion for the current fiscal year [7] - The Utility - Electric Power industry, to which AEP belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] Group 3 - AEP has surpassed consensus EPS estimates three times over the last four quarters, indicating a strong performance trend [2] - The estimate revisions trend for AEP was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Core Insights - Algonquin Power & Utilities (AQN) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, with an earnings surprise of 55.56% [1] - The company generated revenues of $692.4 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.02%, although this represents a decline from $737.1 million in the same quarter last year [2] - The stock has increased approximately 22.7% since the beginning of the year, contrasting with a -3.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $530.16 million, and for the current fiscal year, it is $0.28 on revenues of $2.4 billion [7] - The estimate revisions trend for Algonquin Power & Utilities is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Utility - Electric Power industry is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of ranked industries [8] - NRG Energy, a competitor in the same industry, is expected to report quarterly earnings of $1.80 per share, reflecting a year-over-year increase of +125%, with a significant revision of the consensus EPS estimate by 28.8% higher over the last 30 days [9]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $1.62 in Q1, an 8% decline from the same period last year, but in line with expectations [31][6][7] - The Electric segment saw a 10% increase in earnings due to favorable weather conditions and increased sales volumes, while the Manufacturing segment's earnings decreased due to lower sales volumes and increased production costs [31][32] - The Plastics segment produced diluted earnings per share of $1.03, a 7% decrease compared to the previous year, driven by an 11% decline in PVC pipe prices [33][27] Business Line Data and Key Metrics Changes - The Electric segment's earnings growth was attributed to increased rider revenues from capital investments and favorable weather, while the Manufacturing segment faced challenges from soft end market demand, particularly in recreational vehicles and agriculture [31][32][23] - The Plastics segment experienced a 13% increase in sales volumes, benefiting from strong distributor demand and the new large diameter pipe capacity [33][27] Market Data and Key Metrics Changes - The company noted stabilization in the construction and lawn and garden markets, but challenges remain in the recreational vehicle and agriculture markets due to high inventory levels and softening commodity prices [23][25] - The horticulture market served by T.O. Plastics has stabilized, but the timing of sales volume recovery remains uncertain [23] Company Strategy and Development Direction - The company is focused on a customer-centric capital investment plan, projecting a compounded annual growth rate of 9% in rate base through 2029, aiming to convert this growth into earnings per share growth at a one-to-one ratio [15][37] - The company is actively monitoring trade and tax policy changes, particularly regarding the Inflation Reduction Act, which could impact renewable energy investments [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty, affirming the 2025 earnings guidance with a midpoint of $5.88 per share [7][35] - The company anticipates potential challenges in the second half of the year due to housing starts and builder sentiment, but expects to remain within the guidance range [47] Other Important Information - The company completed the expansion of its BTD Georgia facility, which is expected to increase production capacity and annual sales significantly [29][30] - The company maintains a strong balance sheet with a consolidated equity layer of 62% and over $600 million in available liquidity [34][35] Q&A Session Summary Question: Inquiry about Plastics segment volumes and pricing dynamics - Management indicated a lower single-digit increase in volume for the year, with strong Q1 performance but potential downturn in the second half due to housing market risks [47] - The expectation of continued product price declines despite inflationary input costs was explained as a return to pre-2021 gross margin percentages [48] Question: Impact of competitors expanding capacity in core regions - Management noted that while they do not have complete visibility, they anticipate competitors are likely adding capacity similar to their own efforts [50]