PG&E (PCG) investor relations material

Strategic Review and Objectives

• Launched a comprehensive strategic review to evaluate regulatory, financial, operational, and organizational alternatives, aiming for investment-grade credit and improved service.

• A Strategic Review Committee of four independent directors will guide the process, seeking input from regulators, policymakers, investors, and stakeholders.

• The review aims to maintain industry-leading safety, improve affordability, strengthen reliability, and ensure a financially strong structure.

• Commitment to honoring labor agreements, pension commitments, and claims obligations while pursuing a sustainable path forward.

• Updates on the review will be provided during quarterly earnings calls or upon material developments.

Capital Allocation and Financing Adjustments

• Announced a $2 billion reduction in 2027 capital investment, lowering planned spend from $13.4B to $11.4B, to reduce borrowing and financing costs for customers.

• $1B less utility debt and $1B less holding company debt planned, lowering financing costs and unrecoverable net interest.

• The capital reduction is a one-year adjustment, with work deferred but safety and compliance commitments maintained.

• No new five-year CapEx or rate base guidance will be provided until the review concludes; updates will be given on quarterly calls.

• Will continue to invest about $11.4 billion in California in 2027, focusing on critical safety and compliance programs.

Policy, Regulatory Environment, and Wildfire Liability

• California's current wildfire liability framework is unsustainable, increasing financing costs and making utilities act as uncompensated insurers of last resort.

• Legislative session ended without wildfire liability reform; permanent liquidity and liability cap issues remain unresolved.

• Will continue to advocate for policy reform but will not rely solely on legislative changes to drive strategy.

• Investment-grade credit remains a threshold for any strategic alternative considered.

• Reform is deemed necessary, but immediate action is being taken rather than waiting for policy changes.