- Recorded GAAP earnings were $0.16
per diluted share for the third quarter of 2023, compared to
earnings of $0.21 per diluted share
for the same period in 2022.
- Non-GAAP core earnings were $0.24
per diluted share for the third quarter of 2023, compared to
earnings of $0.29 per diluted share
for the same period in 2022.
- Recorded GAAP earnings were $0.62
per diluted share for the first nine months of 2023, compared to
earnings of $0.60 per diluted share
for the same period in 2022.
- Non-GAAP core earnings were $0.76
per diluted share for the first nine months of 2023, compared to
earnings of $0.84 per diluted share
for the same period in 2022.
- 2023 EPS guidance updated for GAAP earnings from $1.04 to $1.13 per
share (previously) to $0.99 to
$1.08 per share.
- 2023 EPS guidance reaffirmed for non-GAAP core earnings in the
range of $1.19 to $1.23 per share.
- Forecasting no equity needs in 2023 through 2024.
- The Utility's 2023 General Rate Case is included on the
California Public Utility Commission's November 2, 2023 Voting Meeting agenda.
OAKLAND,
Calif., Oct. 26, 2023 /PRNewswire/ -- PG&E
Corporation (NYSE: PCG) recorded third quarter 2023 income
available for common shareholders of $348
million, or $0.16 per diluted
share, as reported in accordance with generally accepted accounting
principles (GAAP). This compares with income available for common
shareholders of $456 million, or
$0.21 per diluted share, for the
third quarter of 2022.
The decrease in GAAP results was primarily driven by accelerated
amortization of the Wildfire Fund asset related to the additional
charge in the third quarter of 2023 for probable losses in
connection with the 2021 Dixie fire, offset by increased tax
benefits related to the Fire Victim Trust's sale of PG&E
Corporation common stock.
"We are making the kind of progress on system safety that our
customers and investors are expecting. We've continued to cut
wildfire ignitions from our equipment this year, on top of last
year's reductions. We're also on track to reach our 2023 goal to
put 350 miles of powerlines underground, part of our breakthrough
goal to underground 10,000 miles in the highest fire-risk areas.
Undergrounding achieves dramatically greater risk reduction and
better reliability at a lower long-term cost compared to
maintaining overhead lines," said PG&E Corporation CEO
Patti Poppe.
Non-GAAP Core Earnings
PG&E Corporation's non-GAAP core earnings, which exclude
non-core items, were $513 million, or
$0.24 per diluted share, in the third
quarter of 2023, compared with $608
million, or $0.29 per diluted
share, during the same period in 2022.
The decrease in quarter-over-quarter non-GAAP core earnings is
primarily driven by timing items related to taxes and overheads,
increased operation and maintenance spending as the result of
performing regular work that was delayed in the first half of 2023
due to storm response activity, and redeployment of resources into
various programs such as information technology system
improvements.
Non-core items, which management does not consider
representative of ongoing earnings, totaled $165 million after
tax, or $0.08 per diluted share, in
the third quarter of 2023, compared with $152 million after
tax, or $0.08 per diluted share,
during the same period in 2022.
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 available for common
shareholders.
2023 Guidance
PG&E Corporation is updating 2023 GAAP earnings guidance in
the range of $0.99 to $1.08 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, and
investigation remedies, partially offset by Fire Victim Trust tax
benefits and prior period net regulatory impact.
The guidance range for projected 2023 non-GAAP core earnings is
reaffirmed 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 $310 million to
$410 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 26, 2023, at 11:00 a.m. Eastern
Time (8:00 a.m. Pacific Time)
to discuss its third quarter 2023 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 2023 Earnings Call
When: Thursday, October 26, 2023 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 2, 2023, 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 "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 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, 2022,
their most recent Quarterly Report on Form 10-Q for the quarter
ended September 30, 2023, and other
reports filed with the SEC, which are available on PG&E
Corporation's website at www.pgecorp.com and on the SEC's 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.
PG&E
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except
per share amounts)
|
|
(Unaudited)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Revenues
|
|
|
|
|
|
|
|
Electric
|
$
4,507
|
|
$
3,895
|
|
$
12,478
|
|
$
11,743
|
Natural gas
|
1,381
|
|
1,499
|
|
4,909
|
|
4,567
|
Total operating
revenues
|
5,888
|
|
5,394
|
|
17,387
|
|
16,310
|
Operating
Expenses
|
|
|
|
|
|
|
|
Cost of
electricity
|
846
|
|
1,032
|
|
2,040
|
|
2,314
|
Cost of natural
gas
|
158
|
|
257
|
|
1,348
|
|
1,177
|
Operating and
maintenance
|
3,139
|
|
2,250
|
|
8,252
|
|
7,651
|
SB 901 securitization
charges, net
|
346
|
|
—
|
|
908
|
|
40
|
Wildfire-related
claims, net of recoveries
|
(32)
|
|
9
|
|
(35)
|
|
153
|
Wildfire Fund
expense
|
219
|
|
118
|
|
453
|
|
353
|
Depreciation,
amortization, and decommissioning
|
811
|
|
1,002
|
|
2,885
|
|
2,915
|
Total operating
expenses
|
5,487
|
|
4,668
|
|
15,851
|
|
14,603
|
Operating
Income
|
401
|
|
726
|
|
1,536
|
|
1,707
|
Interest
income
|
154
|
|
43
|
|
409
|
|
70
|
Interest
expense
|
(682)
|
|
(525)
|
|
(1,924)
|
|
(1,355)
|
Other income,
net
|
62
|
|
118
|
|
213
|
|
246
|
Income (Loss) Before
Income Taxes
|
(65)
|
|
362
|
|
234
|
|
668
|
Income tax
benefit
|
(416)
|
|
(97)
|
|
(1,099)
|
|
(629)
|
Net
Income
|
351
|
|
459
|
|
1,333
|
|
1,297
|
Preferred stock
dividend requirement of subsidiary
|
3
|
|
3
|
|
10
|
|
10
|
Income Available for
Common Shareholders
|
$
348
|
|
$
456
|
|
$
1,323
|
|
$
1,287
|
Weighted Average
Common Shares Outstanding, Basic
|
2,111
|
|
1,987
|
|
2,041
|
|
1,987
|
Weighted Average
Common Shares Outstanding, Diluted
|
2,140
|
|
2,132
|
|
2,138
|
|
2,132
|
Net Income Per
Common Share, Basic
|
$
0.16
|
|
$
0.23
|
|
$
0.65
|
|
$
0.65
|
Net Income Per
Common Share, Diluted
|
$
0.16
|
|
$
0.21
|
|
$
0.62
|
|
$
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
PG&E Corporation's Consolidated Earnings Available for Common
Shareholders in Accordance with
Generally Accepted
Accounting Principles ("GAAP") to Non-GAAP Core Earnings
Third Quarter,
2023 vs. 2022
(in millions, except
per share amounts)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
Earnings
|
|
Earnings
per
Common
Share
|
|
Earnings
|
|
Earnings
per
Common
Share
|
(in millions, except
per share amounts)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
PG&E
Corporation's Earnings/EPS on a GAAP basis
|
$
348
|
|
$
456
|
|
$
0.16
|
|
$
0.21
|
|
$
1,323
|
|
$
1,287
|
|
$
0.62
|
|
$
0.60
|
Non-core items:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
Wildfire Fund contribution (2)
|
157
|
|
85
|
|
0.07
|
|
0.04
|
|
326
|
|
254
|
|
0.15
|
|
0.12
|
Bankruptcy and legal
costs (3)
|
47
|
|
16
|
|
0.02
|
|
0.01
|
|
81
|
|
202
|
|
0.04
|
|
0.09
|
Fire Victim Trust tax
benefit net of securitization (4)
|
(46)
|
|
29
|
|
(0.02)
|
|
0.01
|
|
(185)
|
|
(279)
|
|
(0.09)
|
|
(0.13)
|
Investigation remedies
(5)
|
3
|
|
5
|
|
—
|
|
—
|
|
20
|
|
76
|
|
0.01
|
|
0.04
|
Prior period net
regulatory impact (6)
|
(6)
|
|
(56)
|
|
—
|
|
(0.03)
|
|
(17)
|
|
(11)
|
|
(0.01)
|
|
(0.01)
|
Strategic
repositioning costs (7)
|
1
|
|
61
|
|
—
|
|
0.03
|
|
3
|
|
65
|
|
—
|
|
0.03
|
Wildfire-related
costs, net of insurance (8)
|
9
|
|
12
|
|
—
|
|
0.01
|
|
73
|
|
190
|
|
0.03
|
|
0.09
|
PG&E
Corporation's Non-GAAP Core Earnings/EPS
(9)
|
$
513
|
|
$
608
|
|
$
0.24
|
|
$
0.29
|
|
$
1,624
|
|
$
1,783
|
|
$
0.76
|
|
$
0.84
|
|
|
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 2023 and 2022,
except for certain costs that are not tax deductible. Earnings per
Common Share is calculated based on diluted shares, except as
noted. Amounts may not sum due to rounding.
|
|
|
(1)
|
"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 the table above.
See Non-GAAP Financial Measures below.
|
|
|
(2)
|
The Utility recorded
costs of $219 million (before the tax impact of $62 million) and
$453 million (before the tax impact of $127 million) during the
three and nine months ended September 30, 2023, respectively,
associated with the amortization of the Wildfire Fund asset and
accretion of the related Wildfire Fund liability.
|
|
|
(3)
|
Includes bankruptcy and
legal costs associated with PG&E Corporation's and the
Utility's Chapter 11 filing, including legal and other costs and
exit financing costs, as shown below.
|
|
|
(in
millions)
|
Three Months
Ended
September 30,
2023
|
|
Nine Months
Ended
September 30,
2023
|
Legal and other
costs
|
$
57
|
|
$
86
|
Exit
financing
|
9
|
|
26
|
Bankruptcy and legal
costs (pre-tax)
|
$
66
|
|
$
112
|
Tax impacts
|
(19)
|
|
(31)
|
Bankruptcy and legal
costs (post-tax)
|
$
47
|
|
$
81
|
|
|
(4)
|
Includes any
earnings-impacting investment losses or gains, associated with
investments related to the contributions to the Customer Credit
Trust, the charge related to the establishment of the SB 901
securitization regulatory asset and the SB 901 securitization
regulatory liability associated with revenue credits funded by Net
Operating Loss monetization, and tax benefits related to the Fire
Victim Trust's sale of PG&E Corporation common
stock.
|
|
|
(in
millions)
|
Three Months
Ended
September 30,
2023
|
|
Nine Months
Ended
September 30,
2023
|
Rate neutral
securitization charge
|
$
346
|
|
$
908
|
Net gains related to
Customer Credit Trust
|
(1)
|
|
(23)
|
Fire Victim Trust
tax benefit net of securitization (pre-tax)
|
$
345
|
|
$
884
|
Tax impacts
|
(96)
|
|
(248)
|
Tax benefits from Fire
Victim Trust share sales
|
(295)
|
|
(822)
|
Fire Victim Trust
tax benefit net of securitization (post-tax)
|
$
(46)
|
|
$
(185)
|
|
|
(5)
|
Includes costs
associated with the CPUC's OII into the 2017 Northern California
Wildfires and 2018 Camp Fire, the system enhancements related to
the locate and mark OII, and the restoration and rebuild costs for
the town of Paradise, as shown below.
|
|
|
(in
millions)
|
Three Months
Ended
September 30,
2023
|
|
Nine Months
Ended
September 30,
2023
|
Wildfire OII
disallowance and system enhancements
|
$
1
|
|
$
2
|
Locate and mark OII
system enhancements
|
1
|
|
2
|
Paradise restoration
and rebuild
|
2
|
|
23
|
Investigation
remedies (pre-tax)
|
$
4
|
|
$
27
|
Tax impacts
|
(1)
|
|
(7)
|
Investigation
remedies (post-tax)
|
$
3
|
|
$
20
|
|
|
(6)
|
Includes adjustments
associated with the recovery of capital expenditures from 2011
through 2014 above amounts adopted in the 2011 GT&S rate case
per the CPUC decision dated July 14, 2022.
|
|
|
(in
millions)
|
Three Months
Ended
September 30,
2023
|
|
Nine Months
Ended
September 30,
2023
|
2011-2014 GT&S
capital audit
|
$
(8)
|
|
$
(24)
|
Prior period net
regulatory impact (pre-tax)
|
$
(8)
|
|
$
(24)
|
Tax impacts
|
2
|
|
7
|
Prior period net
regulatory impact (post-tax)
|
$
(6)
|
|
$
(17)
|
|
|
(7)
|
The Utility recorded
one-time costs related to repositioning PG&E Corporation's and
the Utility's operating model, including their
workforce.
|
|
|
(in
millions)
|
Three Months
Ended
September 30,
2023
|
|
Nine Months
Ended
September 30,
2023
|
Operating
model
|
$
1
|
|
$
4
|
Strategic
repositioning costs (pre-tax)
|
$
1
|
|
$
4
|
Tax impacts
|
—
|
|
(1)
|
Strategic
repositioning costs (post-tax)
|
$
1
|
|
$
3
|
|
|
(8)
|
Includes costs
associated with the 2019 Kincade fire, 2020 Zogg fire, and 2021
Dixie fire, net of insurance, as shown below.
|
|
|
(in
millions)
|
Three Months
Ended
September 30,
2023
|
|
Nine Months
Ended
September 30,
2023
|
2019 Kincade
fire-related costs
|
$
2
|
|
5
|
2020 Zogg fire-related
costs
|
7
|
|
17
|
2020 Zogg fire-related
insurance recoveries
|
(2)
|
|
(3)
|
2020 Zogg fire-related
legal settlements
|
—
|
|
50
|
2021 Dixie
fire-related legal settlements
|
5
|
|
17
|
Wildfire-related
costs, net of insurance (pre-tax)
|
$
12
|
|
$
87
|
Tax impacts
|
(3)
|
|
(14)
|
Wildfire-related
costs, net of insurance (post-tax)
|
$
9
|
|
$
73
|
|
|
(9)
|
"Non-GAAP core
earnings" is a non-GAAP financial measure. See Non-GAAP Financial
Measures below.
|
|
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, 2023.
|
|
PG&E Corporation's
2023 Earnings Guidance
|
|
|
|
2023
|
EPS
Guidance
|
Low
|
|
High
|
Estimated EPS on a
GAAP basis
|
~
|
$
0.99
|
|
~
|
$
1.08
|
Estimated Non-Core
Items: (1)
|
|
|
|
|
|
Amortization of
Wildfire Fund contribution (2)
|
~
|
0.19
|
|
~
|
0.19
|
Bankruptcy and legal
costs (3)
|
~
|
0.05
|
|
~
|
0.04
|
Fire Victim Trust tax
benefit net of securitization (4)
|
~
|
(0.09)
|
|
~
|
(0.12)
|
Investigation remedies
(5)
|
~
|
0.02
|
|
~
|
0.02
|
Prior period net
regulatory impact (6)
|
~
|
(0.01)
|
|
~
|
(0.01)
|
Strategic
repositioning costs (7)
|
~
|
—
|
|
~
|
—
|
Wildfire-related
costs, net of insurance (8)
|
~
|
0.03
|
|
~
|
0.03
|
Estimated EPS on a
non-GAAP Core Earnings basis
|
~
|
$
1.19
|
|
~
|
$
1.23
|
|
|
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 2023, except for
certain costs that are not tax deductible. Amounts may not sum due
to rounding.
|
|
|
(1)
|
"Non-core items"
include items that management does not consider representative of
ongoing earnings and affect comparability of financial results
between periods. See Non-GAAP Financial Measures below.
|
|
|
(2)
|
"Amortization of
Wildfire Fund contribution" represents the amortization of the
Wildfire Fund asset and accretion of the related Wildfire Fund
liability.
|
|
|
|
2023
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
Amortization of
Wildfire Fund contribution
|
~
|
$
570
|
|
~
|
$
570
|
Amortization of
Wildfire Fund contribution (pre-tax)
|
~
|
$
570
|
|
~
|
$
570
|
Tax impacts
|
~
|
(159)
|
|
~
|
(159)
|
Amortization of
Wildfire Fund contribution (post-tax)
|
~
|
$
411
|
|
~
|
$
411
|
|
|
(3)
|
"Bankruptcy and legal
costs" consists of legal and other costs associated with PG&E
Corporation's and the Utility's Chapter 11 filing, and exit
financing costs.
|
|
|
|
2023
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
Legal and other
costs
|
~
|
$
105
|
|
~
|
$
90
|
Exit
financing
|
~
|
35
|
|
~
|
25
|
Bankruptcy and legal
costs (pre-tax)
|
~
|
$
140
|
|
~
|
$
115
|
Tax impacts
|
~
|
(39)
|
|
~
|
(32)
|
Bankruptcy and legal
costs (post-tax)
|
~
|
$
101
|
|
~
|
$
83
|
|
|
(4)
|
"Fire Victim Trust tax
benefit net of securitization" includes the impact of rate neutral
(SB 901) securitization and tax benefits related to the Fire Victim
Trust. Impacts of the SB 901 securitization include the
establishment of the SB 901 securitization regulatory asset and the
SB 901 regulatory liability associated with revenue credits funded
by Net Operating Loss monetization. Fire Victim Trust tax benefits
include tax benefits recognized upon the sale of shares of PG&E
Corporation common stock by the Fire Victim Trust, which PG&E
Corporation and the Utility have elected to treat as a grantor
trust. Also included are any earnings-impacting investment losses
or gains, associated with investments related to the contributions
to the Customer Credit Trust. The low case includes tax benefits
for the 180,000,000 shares of PG&E Corporation common stock
sold in the aggregate by the Fire Victim Trust as of October 18,
2023, whereas the high case reflects an assumption that the Fire
Victim Trust sells the remaining 67,743,590 shares during
2023.
|
|
|
|
|
|
2023
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
Rate neutral
securitization charge
|
~
|
$
910
|
|
~
|
$ 1,210
|
Net gains related to
Customer Credit Trust
|
~
|
(25)
|
|
~
|
(25)
|
Fire Victim Trust
tax benefit net of securitization (pre-tax)
|
~
|
$
885
|
|
~
|
$
1,185
|
Tax impacts
|
~
|
(248)
|
|
~
|
(332)
|
Tax benefits from Fire
Victim Trust share sales
|
~
|
(820)
|
|
~
|
(1,105)
|
Fire Victim Trust
tax benefit net of securitization (post-tax)
|
~
|
$
(183)
|
|
~
|
$
(252)
|
|
|
(5)
|
"Investigation
remedies" includes costs related to the Paradise restoration and
rebuild, the Wildfires OII decision different, the settlement
agreement with the Safety and Enforcement Division's investigation
into the 2020 Zogg fire, and the locate and mark OII system
enhancements.
|
|
|
|
2023
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
Paradise restoration
and rebuild
|
~
|
$
25
|
|
~
|
$
25
|
Wildfire OII
disallowance and system enhancements
|
~
|
15
|
|
~
|
15
|
2020 Zogg fire
settlement
|
~
|
5
|
|
~
|
—
|
Locate and mark OII
system enhancements
|
~
|
5
|
|
~
|
5
|
Investigation
remedies (pre-tax)
|
~
|
$
50
|
|
~
|
$
45
|
Tax impacts
|
~
|
(13)
|
|
~
|
(11)
|
Investigation
remedies (post-tax)
|
~
|
$
37
|
|
~
|
$
34
|
|
|
(6)
|
"Prior period net
regulatory impact" represents the recovery of capital expenditures
from 2011 through 2014 above amounts adopted in the 2011 GT&S
rate case.
|
|
|
|
2023
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
2011-2014 GT&S
capital audit
|
~
|
$
(35)
|
|
~
|
$
(35)
|
Prior period net
regulatory impact (pre-tax)
|
~
|
$
(35)
|
|
~
|
$
(35)
|
Tax impacts
|
~
|
10
|
|
~
|
10
|
Prior period net
regulatory impact (post-tax)
|
~
|
$
(25)
|
|
~
|
$
(25)
|
|
|
(7)
|
"Strategic
repositioning costs" includes one-time costs related to
repositioning PG&E Corporation's and the Utility's operating
model, including their workforce, and costs associated with the
potential sale of a minority interest in Pacific Generation
LLC.
|
|
|
|
2023
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
Operating
model
|
~
|
$
5
|
|
~
|
$
5
|
Pacific Generation LLC
minority interest sale
|
~
|
—
|
|
~
|
—
|
Strategic
repositioning costs (pre-tax)
|
~
|
$
5
|
|
~
|
$
5
|
Tax impacts
|
~
|
(1)
|
|
~
|
(1)
|
Strategic
repositioning costs (post-tax)
|
~
|
$
4
|
|
~
|
$
4
|
|
|
(8)
|
"Wildfire-related
costs, net of insurance" includes legal and other costs associated
with the 2019 Kincade fire, 2020 Zogg fire, and 2021 Dixie fire,
net of insurance.
|
|
|
|
2023
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
2019 Kincade
fire-related costs
|
~
|
$
15
|
|
~
|
$
10
|
2020 Zogg fire-related
costs
|
~
|
25
|
|
~
|
20
|
2020 Zogg fire-related
insurance recoveries
|
~
|
(5)
|
|
~
|
(5)
|
2020 Zogg fire-related
legal settlements
|
~
|
50
|
|
~
|
50
|
2021 Dixie
fire-related legal settlements
|
~
|
15
|
|
~
|
15
|
Wildfire-related
costs, net of insurance (pre-tax)
|
~
|
$
100
|
|
~
|
$
90
|
Tax impacts
|
~
|
(28)
|
|
~
|
(25)
|
Wildfire-related
costs, net of insurance (post-tax)
|
~
|
$
72
|
|
~
|
$
65
|
|
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, 2023.
|
|
|
Non-GAAP Financial
Measures
PG&E Corporation
and Pacific Gas and Electric Company
|
|
Non-GAAP Core Earnings and Non-GAAP Core EPS
"Non-GAAP core earnings" and "Non-GAAP core EPS," also referred
to as "non-GAAP core earnings per share," are non-GAAP financial
measures. Non-GAAP core earnings 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 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 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. 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, PG&E Corporation is 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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SOURCE PG&E Corporation