PG&E Corporation Reports Third-Quarter 2022 Financial Results, on Track for Updated GAAP Earnings Guidance of $0.80 to $1.01 per Diluted Share and Narrowed Non-GAAP Core Earnings Guidance of $1.09 to $1.11 per Diluted Share

• Recorded GAAP earnings were $0.21 per diluted share for the third quarter of 2022, compared to losses of $(0.55) per diluted share for the same period in 2021.

• Non-GAAP core earnings were $0.29 per diluted share for the third quarter of 2022, compared to earnings of $0.24 per diluted share for the same period in 2021.

• Recorded GAAP earnings were $0.60 per diluted share for the first nine months of 2022, compared to losses of $(0.29) per diluted share for the same period in 2021.

• Non-GAAP core earnings were $0.84 per diluted share for the first nine months of 2022, compared to earnings of $0.78 per diluted share for the same period in 2021.

• 2022 EPS guidance for GAAP earnings was updated to a range of $0.80 to $1.01 per diluted share and non-GAAP core earnings was narrowed to a range of $1.09 to $1.11 per diluted share.

• Forecasting no equity needs in 2022 through 2024.

• 2023 EPS guidance initiated for GAAP earnings in the range of $0.98 to $1.21 and non-GAAP core earnings in the range of $1.19 to $1.23 per share.

PG&E Corporation (NYSE: PCG) recorded third-quarter 2022 income available for common shareholders of $456 million, or $0.21 per diluted share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with losses attributable to common shareholders of $(1,091) million, or $(0.55) per diluted share, for the third quarter of 2021.

GAAP results were primarily driven by unrecoverable interest expense and other earnings factors, including allowance for funds used during construction equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. Results are also driven by costs related to the amortization of the Wildfire Fund asset and accretion of the related Wildfire Fund liability, strategic repositioning costs, Fire Victim Trust tax benefit net of securitization, PG&E Corporation’s and Pacific Gas and Electric Company’s (Utility) reorganization cases under Chapter 11 of the U.S. Bankruptcy Code (Chapter 11), wildfire-related costs, and investigation remedies, partially offset by prior period net regulatory impact.

“PG&E is committed to reducing risk and delivering reliable, affordable service to our customers and hometowns, while making the right investments for a clean energy future,” said Patti Poppe, CEO of PG&E Corporation. “Fulfilling those goals is essential to our Triple Bottom Line of serving people, the planet, and California’s prosperity.”

Non-GAAP Core Earnings

PG&E Corporation’s non-GAAP core earnings, which exclude non-core items, were $608 million, or $0.29 per diluted share, in the third quarter of 2022, compared with $479 million, or $0.24 per diluted share, during the same period in 2021.

The increase in quarter-over-quarter non-GAAP core earnings per diluted share was primarily driven by regulatory items, taxes, reinvestment, and other miscellaneous items, growth in rate base earnings, and cost reductions, partially offset by the increase in shares outstanding.

Non-core items, which management does not consider representative of ongoing earnings, totaled $152 million after tax, or $0.07 per diluted share, in the third quarter of 2022, compared with $1.6 billion after tax, or $0.79 per diluted share, during the same period in 2021.

PG&E Corporation uses “non-GAAP core earnings,” which is a non-GAAP financial measure, in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items. See the accompanying tables for a reconciliation of non-GAAP core earnings to consolidated earnings (loss) attributable to common shareholders.

2022 Guidance

PG&E Corporation is updating 2022 GAAP earnings guidance in the range of $0.80 to $1.01 per diluted share. Factors driving GAAP earnings include costs related to unrecoverable interest expense of $330 million to $370 million after tax and other earnings factors, including allowance for funds used during construction equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. Additional factors include the amortization of the Wildfire Fund asset and accretion of the related Wildfire Fund liability, PG&E Corporation’s and the Utility’s reorganization cases under Chapter 11, wildfire-related costs, investigation remedies, and strategic repositioning costs, partially offset by Fire Victim Trust tax benefit net of securitization and prior period net regulatory impact.

On a non-GAAP basis, the guidance range for projected 2022 non-GAAP core earnings is narrowed to $1.09 to $1.11 per diluted share. The guidance range for non-core items, which management does not consider representative of ongoing earnings, is updated to $220 million to $630 million after tax.

Guidance is based on various assumptions and forecasts, including those relating to authorized revenues, future expenses, capital expenditures, rate base, equity issuances, and certain other factors.

2023 Guidance

PG&E Corporation is initiating 2023 GAAP earnings guidance in the range of $0.98 to $1.21 per diluted share. Factors driving GAAP earnings include costs related to unrecoverable interest expense of $370 million to $430 million after tax and other earnings factors, including allowance for funds used during construction equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. Additional factors include the amortization of the Wildfire Fund asset and accretion of the related Wildfire Fund liability, PG&E Corporation’s and the Utility’s reorganization cases under Chapter 11, wildfire-related costs, investigation remedies, and Fire Victim Trust tax benefits, partially offset by prior period net regulatory impact.

On a non-GAAP basis, the guidance range for projected 2023 non-GAAP core earnings is initiated at $1.19 to $1.23 per diluted share. The guidance range for non-core items, which management does not consider representative of ongoing earnings, is updated to $50 million to $460 million after tax.

Guidance is based on various assumptions and forecasts, including those relating to authorized revenues, future expenses, capital expenditures, rate base, equity issuances, and certain other factors.

Supplemental Financial Information

In addition to the financial information accompanying this release, presentation slides have been furnished to the Securities and Exchange Commission (SEC) and are available on PG&E Corporation’s website at: http://investor.pgecorp.com/financials/quarterly-earnings-reports/default.aspx.

Earnings Conference Call

PG&E Corporation will also hold a conference call on October 27, 2022, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its third quarter 2022 results. The public can access the conference call through a simultaneous webcast. The link is provided below and will also be available from the PG&E Corporation website.

What: Third Quarter 2022 Earnings Call

When: Thursday, October 27, 2022 at 11:00 a.m. Eastern Time

Where: http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx

A replay of the conference call will be archived at http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx.

Alternatively, a toll-free replay of the conference call may be accessed shortly after the live call through November 3, 2022, by dialing (800) 770-2030. International callers may dial (647) 362-9199. For both domestic and international callers, the confirmation code 64421 will be required to access the replay.

Public Dissemination of Certain Information

PG&E Corporation and the Utility routinely provide links to the Utility’s principal regulatory proceedings with the California Public Utilities Commission and the Federal Energy Regulatory Commission at http://investor.pgecorp.com, under the “Regulatory Filings” tab, so that such filings are available to investors upon filing with the relevant agency. PG&E Corporation and the Utility also routinely post, or provide direct links to, presentations, documents, and other information that may be of interest to investors, including regarding dividends, at http://investor.pgecorp.com, under the “Chapter 11,” “Wildfire and Safety Updates,” “News & Events: Events & Presentations,” and “Shareholders: Dividend Information” tabs, respectively, in order to publicly disseminate such information. It is possible that any of these filings or information included therein could be deemed to be material information.

About PG&E Corporation

PG&E Corporation (NYSE: PCG) is a holding company headquartered in Oakland, California. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. For more information, visit http://www.pgecorp.com.

Forward-Looking Statements

This news release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and the Utility, including but not limited to earnings guidance and equity financing requirements for 2022, 2023 and 2024. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in PG&E Corporation and the Utility’s joint annual report on Form 10-K for the year ended December 31, 2021, their most recent quarterly report on Form 10-Q for the quarter ended September 30, 2022, and other reports filed with the SEC, which are available on PG&E Corporation's website at www.pgecorp.com and on the SEC website at www.sec.gov. PG&E Corporation and the Utility undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.

All amounts presented in the table above and footnotes below are tax adjusted at PG&E Corporation’s statutory tax rate of 27.98% for 2022 and 2021, except for certain costs that are not tax deductible. Amounts may not sum due to rounding.

Undefined, capitalized terms have the meanings set forth in the PG&E Corporation and the Utility’s joint quarterly report on Form 10-Q for the quarter ended September 30, 2022.

All amounts presented in the table above and footnotes below are tax adjusted at PG&E Corporation’s statutory tax rate of 27.98% for 2022 and 2023, except for certain costs that are not tax deductible. Amounts may not sum due to rounding.

Undefined, capitalized terms have the meanings set forth in the PG&E Corporation and the Utility’s joint quarterly report on Form 10-Q for the quarter ended September 30, 2022.

PG&E Corporation discloses historical financial results and provides guidance based on “non-GAAP core earnings” and “non-GAAP core EPS” in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items.

“Non-GAAP core earnings” is a non-GAAP financial measure and is calculated as income available for common shareholders less non-core items. “Non-core items” include items that management does not consider representative of ongoing earnings and affect comparability of financial results between periods, consisting of the items listed in Exhibit A. “Non-GAAP core EPS,” also referred to as “non-GAAP core earnings per share,” is a non-GAAP financial measure and is calculated as non-GAAP core earnings divided by common shares outstanding (taken on a basic basis in the event of a GAAP loss and a diluted basis in the event of a GAAP gain). PG&E Corporation and the Utility use non-GAAP core earnings and non-GAAP core EPS to understand and compare operating results across reporting periods for various purposes including internal budgeting and forecasting, short- and long-term operating planning, and employee incentive compensation. PG&E Corporation and the Utility believe that non-GAAP core earnings and non-GAAP core EPS provide additional insight into the underlying trends of the business, allowing for a better comparison against historical results and expectations for future performance. With respect to our projection of non-GAAP core EPS for the years 2024-2026, we are not providing a reconciliation to the corresponding GAAP measures because we are unable to predict with reasonable certainty the reconciling items that may affect GAAP net income without unreasonable effort. The reconciling items are primarily due to the future impact of wildfire-related costs, timing of regulatory recoveries, special tax items, and investigation remedies. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures.

Non-GAAP core earnings and non-GAAP core EPS are not substitutes or alternatives for GAAP measures such as consolidated income available for common shareholders and may not be comparable to similarly titled measures used by other companies.

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