PG&E (US:PCG)2025-10-23 16:02Financial 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]