PG&E (PCG) investor relations material

Legislative and Regulatory Updates

• Senate Bill 254 established an $18 billion Wildfire Fund Continuation Account, reducing upfront utility funding and lowering one utility's share by 25% to 47.85%.

• Utilities' annual contributions to the fund will decrease, with new securitization options, liability limitations, and a right of first refusal over insurance subrogation rights.

• The Catastrophe Response Council oversees the fund, with a comprehensive policy reform report due by April 2026 to guide future legislative action.

• Enhanced protections include improved prudency standards, liquidity, reimbursement mechanisms, and a disallowance cap based on the year of ignition.

• Utilities can securitize 2025 fire costs early, and further wildfire liability reforms will be considered in 2026.

Financial Guidance and Capital Allocation

• Five-year capital plan includes $73 billion in investments for 2026–2030, with $2.9 billion to be securitized under SB 254 and at least $5 billion in additional CapEx opportunities identified.

• 2025 non-GAAP core EPS guidance is $1.48–$1.52, with a 10% increase expected and at least 9% annual growth targeted for 2026–2030.

• Weighted average rate base projected at $69 billion in 2025, with average annual rate base growth of 9%.

• No new common equity required through 2030, and equity requirements for 2025–2030 are fully funded.

• Dividend payout ratio targeted at 20% by 2028, maintaining financial flexibility and investment-grade ratings.

Credit Rating and Financing Strategy

• Recent credit rating upgrade by Fitch, with a focus on maintaining investment grade and avoiding equity dilution at low stock values.

• Financing plan prioritizes conservative planning, improved cash flow, and a 20% dividend payout target by 2028.

• Parent debt reduction of $2 billion eliminated from the plan, and FFO/Debt is targeted in the mid-teens.

• Opportunistic share repurchases may be considered if stock remains depressed and policy reform stalls, but investment in safety and resiliency remains the priority.