PG&E (US:PCG)2026-02-12 17:02Financial Data and Key Metrics Changes - The company reported full-year 2025 core earnings of $1.50 per share, which is up 10% from 2024, marking the fourth consecutive year of double-digit core EPS growth [5][20] - The 2026 core EPS guidance range has been raised to $1.64-$1.66, implying a 10% growth at the midpoint [5][6] - The company achieved a 43% reduction in serious injuries and fatalities compared to 2024, and a 30% improvement in serious preventable motor vehicle incident rate [6][7] Business Line Data and Key Metrics Changes - Operating and maintenance savings amounted to $0.20 for the year, with $0.09 redeployed back into the system for customer benefits [20] - The company cut application intake time for new connections by 40%, from an average of 76 days to 45 days [20] - The company has seen significant growth in projects moving into the final engineering stage, now standing at almost 3.6 GW, more than doubling from the previous quarter [18] Market Data and Key Metrics Changes - The company delivered its fourth reduction in electric rates in two years, with bundled residential electric rates now 11% lower than in January 2024 [8][15] - The average monthly bill for typical customers is about $20 less than before [8] - The company reported an 18% EV penetration in the final quarter of the year, indicating strong demand for electric vehicle charging [51] Company Strategy and Development Direction - The company aims for a growth outlook of 9%+ annually from 2027 through 2030, focusing on safety, reliability, and affordability [6][10] - The company is committed to addressing California's wildfire challenges and has launched Emberpoint, a venture aimed at integrating next-generation wildfire solutions [12][13] - The company plans to file for approximately 5,000 miles of additional undergrounding over the next 10 years, starting in 2028 [14][15] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of legislative progress on wildfire risk and cost allocation, indicating that the current model is regressive and burdensome for customers [36][39] - The company is optimistic about the CEA process and believes that timely legislative action is crucial for addressing affordability issues [36][81] - Management highlighted the need for a sustainable investment model to attract capital for infrastructure improvements [39][63] Other Important Information - The company has a $73 billion five-year capital plan, with no new common equity required through 2030 [21][22] - The company has doubled its annual share dividend to $0.20 for 2026, with expectations for consistent increases in the next two years [22] - The company reduced non-fuel O&M by 2.5% in 2025, exceeding targets for four consecutive years [24] Q&A Session Summary Question: What is the company's view on the CEA process and legislative timing? - Management expressed that the CEA is on track and emphasized the importance of getting the legislative outcomes right, supporting risk reduction and affordability [34][36] Question: How would the company prioritize capital allocation if progress stalls? - Management indicated that all aspects of the plan would be on the table if progress on legislation halts, emphasizing the need for an attractive legislative construct [40] Question: What are the expectations for the Kincade and Dixie cost recovery proceedings? - Management outlined that they are seeking recovery for over $1 billion in claims related to the Kincade and Dixie wildfires, supported by a strong case for prudency [89] Question: How does the company view the data center pipeline and its impact on growth? - Management noted that the data center load growth is incorporated into the 0%-3% bill growth target, with expectations for significant contributions to affordability [57][80]