- GAAP earnings were $1.05 per
share for the year and $0.43 per
share for the fourth quarter of 2023, compared to earnings of
$0.84 and $0.24 per share, respectively, for the same
periods in 2022.
- Non-GAAP core earnings were $1.23
per share for the year and $0.47 per
share for the fourth quarter of 2023, compared to $1.10 and $0.26 per
share, respectively, for the same periods in 2022.
- 2024 EPS GAAP guidance increased from $1.08 to $1.12 per
share (previously) to $1.10 to
$1.14 per share.
- 2024 EPS non-GAAP core guidance increased from $1.31 to $1.35 per
share (previously) to $1.33 to
$1.37 per share.
- No equity issued in 2023; forecasting no equity needs in
2024.
- 2023 non-fuel O&M costs reduced by 5.5%, as compared to
2022; exceeded annual reduction target of 2% for the second year in
a row.
- Five-year capital plan increased to $62
billion through 2028, a 20% increase to support critical
customer infrastructure improvements.
- Non-GAAP core EPS growth guidance of at least 9% extended to
2027 and 2028.
OAKLAND,
Calif., Feb. 22, 2024 /PRNewswire/ -- "Our story
of progress continued in 2023, including further reducing wildfire
ignitions and burying more powerlines than any prior year—all while
achieving overall non-fuel operating and maintenance cost savings
of more than 5%. We're excited about the future we're creating for
our customers and investors—differentiating ourselves on safety and
financial performance while building a system that meets the
climate challenges of tomorrow," said PG&E Corporation CEO
Patti Poppe.
PG&E Corporation (NYSE: PCG) recorded full-year 2023 income
available for common shareholders of $2,242
million, or $1.05 per share,
as reported in accordance with generally accepted accounting
principles (GAAP). This compares with income available for common
shareholders of $1,800 million, or
$0.84 per share, for the full year
2022.
The increase in year-over-year GAAP earnings is primarily driven
by an increase in customer capital investment, as approved in the
2023 General Rate Case final decision and which earns an equity
return as approved in the cost of capital proceeding. Other drivers
include non-fuel operating and maintenance savings achieved for the
full year including resource management, efficiencies, and planning
and execution improvements, net of amounts reinvested back into the
business to fund various programs such as standing up new Model
Yards utilizing PG&E Corporation's and Pacific Gas and Electric
Company's (Utility) Lean operating system, and additional employee
training resources. Additional drivers include lower costs related
to PG&E Corporation's and the Utility's reorganization cases
under Chapter 11 of the U.S. Bankruptcy Code (Chapter 11) and lower
wildfire-related costs.
Non-GAAP Core Earnings
PG&E Corporation's non-GAAP core earnings, which exclude
non-core items, were $2,630 million,
or $1.23 per share, for the full year
2023, compared with $2,343 million,
or $1.10 per share, for the full year
2022.
The increase in year-over-year non-GAAP core earnings is
primarily driven by an increase in customer capital investment, as
approved in the 2023 General Rate Case final decision and which
earns an equity return as approved in the cost of capital
proceeding. Other drivers include non-fuel operating and
maintenance savings achieved for the full year including resource
management, efficiencies, and planning and execution improvements,
net of amounts reinvested back into the business to fund various
programs such as standing up new Model Yards utilizing PG&E
Corporation's and Pacific Gas and Electric Company's (Utility) Lean
operating system, and additional employee training resources.
Non-core items, which management does not consider
representative of ongoing earnings, totaled $388 million after tax, or $0.18 per share, for the full year 2023, compared
with $543 million after tax, or
$0.25 per share, for the full year
2022.
5.5% non-fuel O&M reduction is calculated based on the prior
year's operating and maintenance costs, excluding non-core items,
balancing account deferrals, redeployment above base plan, property
taxes, and certain state-mandated programs where the Utility's role
is to facilitate achieving public policy goals regarding energy
efficiency, the cost of which the Utility recovers.
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.
2024 Guidance
PG&E Corporation is increasing 2024 GAAP earnings guidance
in the range of $1.10 to $1.14 per share (previously $1.08 to $1.12 per
share). The midpoint of this new range is up seven percent from the
year-end result of $1.05 per share.
Factors driving GAAP earnings include costs related to
unrecoverable interest expense of $285 to $365
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 prior period net regulatory impact.
The guidance range for projected 2024 non-GAAP core earnings is
increased to $1.33 to $1.37 per share (previously $1.31 to $1.35 per
share). The midpoint of this new range is up ten percent from the
year-end result of $1.23 per share.
The guidance range for non-core items, which management does not
consider representative of ongoing earnings, is $480 million to $490
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
February 22, 2024, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its fourth
quarter and full year 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: Fourth Quarter and Full Year 2023 Earnings Call
When: Thursday, February 22, 2024
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 February 29, 2024, by dialing (800) 770-2030.
International callers may dial (647) 362-9199. For both domestic
and international callers, the confirmation code 92587 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 at http://investor.pgecorp.com, under the
"Wildfire and Safety Updates" and "News & Events: Events &
Presentations" 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 earnings guidance and equity
financing requirements for 2024, as well as operating cost savings
and capital investments. 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, 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
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in millions, except
per share amounts)
|
|
|
Year ended December
31,
|
|
2023
|
|
2022
|
|
2021
|
Operating
Revenues
|
|
|
|
|
|
Electric
|
$
17,424
|
|
$
15,060
|
|
$
15,131
|
Natural gas
|
7,004
|
|
6,620
|
|
5,511
|
Total operating
revenues
|
24,428
|
|
21,680
|
|
20,642
|
Operating
Expenses
|
|
|
|
|
|
Cost of
electricity
|
2,443
|
|
2,756
|
|
3,232
|
Cost of natural
gas
|
1,754
|
|
2,100
|
|
1,149
|
Operating and
maintenance
|
11,924
|
|
9,809
|
|
10,200
|
SB 901 securitization
charges, net
|
1,267
|
|
608
|
|
—
|
Wildfire-related
claims, net of recoveries
|
64
|
|
237
|
|
258
|
Wildfire Fund
expense
|
567
|
|
477
|
|
517
|
Depreciation,
amortization, and decommissioning
|
3,738
|
|
3,856
|
|
3,403
|
Total operating
expenses
|
21,757
|
|
19,843
|
|
18,759
|
Operating
Income
|
2,671
|
|
1,837
|
|
1,883
|
Interest
income
|
606
|
|
162
|
|
20
|
Interest
expense
|
(2,850)
|
|
(1,917)
|
|
(1,601)
|
Other income,
net
|
272
|
|
394
|
|
457
|
Reorganization items, net
|
—
|
|
—
|
|
(11)
|
Income Before Income
Taxes
|
699
|
|
476
|
|
748
|
Income tax provision
(benefit)
|
(1,557)
|
|
(1,338)
|
|
836
|
Net Income
(Loss)
|
2,256
|
|
1,814
|
|
(88)
|
Preferred stock
dividend requirement of subsidiary
|
14
|
|
14
|
|
14
|
Income (Loss)
Attributable to Common Shareholders
|
$
2,242
|
|
$
1,800
|
|
$
(102)
|
Weighted Average
Common Shares Outstanding, Basic
|
2,064
|
|
1,987
|
|
1,985
|
Weighted Average
Common Shares Outstanding, Diluted
|
2,138
|
|
2,132
|
|
1,985
|
Net Income (Loss)
Per Common Share, Basic
|
$
1.09
|
|
$
0.91
|
|
$
(0.05)
|
Net Income (Loss)
Per Common Share, Diluted
|
$
1.05
|
|
$
0.84
|
|
$
(0.05)
|
|
|
|
|
|
|
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
|
Fourth Quarter and
Full Year, 2023 vs. 2022
|
(in millions, except
per share amounts)
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
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
|
$
919
|
|
$
513
|
|
$
0.43
|
|
$
0.24
|
|
$
2,242
|
|
$
1,800
|
|
$
1.05
|
|
$
0.84
|
Non-core items:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
Wildfire Fund contribution (2)
|
83
|
|
90
|
|
0.04
|
|
0.04
|
|
408
|
|
344
|
|
0.19
|
|
0.16
|
Bankruptcy and legal
costs (3)
|
8
|
|
14
|
|
—
|
|
0.01
|
|
89
|
|
216
|
|
0.04
|
|
0.10
|
Fire Victim Trust tax
benefit net of securitization (4)
|
(77)
|
|
(139)
|
|
(0.04)
|
|
(0.07)
|
|
(262)
|
|
(418)
|
|
(0.12)
|
|
(0.20)
|
Investigation remedies
(5)
|
3
|
|
17
|
|
—
|
|
0.01
|
|
24
|
|
93
|
|
0.01
|
|
0.04
|
Prior period net
regulatory impact (6)
|
(6)
|
|
—
|
|
—
|
|
—
|
|
(24)
|
|
(11)
|
|
(0.01)
|
|
(0.01)
|
Strategic
repositioning costs (7)
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
65
|
|
—
|
|
0.03
|
Wildfire-related
costs, net of insurance (8)
|
76
|
|
64
|
|
0.04
|
|
0.03
|
|
150
|
|
254
|
|
0.07
|
|
0.12
|
PG&E
Corporation's Non-GAAP core earnings/EPS
(9)
|
$
1,006
|
|
$
560
|
|
$
0.47
|
|
$
0.26
|
|
$
2,630
|
|
$
2,343
|
|
$
1.23
|
|
$
1.10
|
|
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. 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 $115 million (before the tax impact of $32 million) and
$567 million (before the tax impact of $159 million) during the
three months and year ended December 31, 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. The three months ended
December 31, 2023 also include a reclassification from non-core to
core earnings of $20 million in interest expense incurred between
February 2023 and September 2023 on debt that was originally
intended to be repaid with the proceeds from a securitization
transaction, as a result of revised debt planning.
|
|
|
(in
millions)
|
Three Months
Ended
December 31, 2023
|
|
Year Ended
December 31, 2023
|
Legal and other
costs
|
$
34
|
|
$
120
|
Exit
financing
|
(23)
|
|
3
|
Bankruptcy and legal
costs (pre-tax)
|
$
11
|
|
$
123
|
Tax impacts
|
(3)
|
|
(34)
|
Bankruptcy and legal
costs (post-tax)
|
$
8
|
|
$
89
|
|
|
(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
December 31, 2023
|
|
Year Ended
December 31, 2023
|
SB 901 securitization
charge
|
$
359
|
|
$
1,267
|
Net gains related to
customer credit trust
|
1
|
|
(22)
|
Fire Victim Trust
tax benefit net of securitization (pre-tax)
|
$
360
|
|
$
1,245
|
Tax impacts
|
(101)
|
|
(348)
|
Tax benefits from Fire
Victim Trust share sales
|
(337)
|
|
(1,158)
|
Fire Victim Trust
tax benefit net of securitization (post-tax)
|
$
(77)
|
|
$
(262)
|
|
|
(5)
|
Includes costs
associated with the decision different for the OII related to the
2017 Northern California Wildfires and 2018 Camp Fire ("Wildfires
OII"), the system enhancements related to the locate and mark OII,
the restoration and rebuilding costs for the town of Paradise, and
the settlement agreement resolving the Safety and Enforcement
Division's investigation into the 2020 Zogg fire, as shown
below.
|
|
|
(in
millions)
|
Three Months
Ended
December 31, 2023
|
|
Year Ended
December 31, 2023
|
Wildfires OII
disallowance and system enhancements
|
$
3
|
|
$
3
|
Locate and mark OII
system enhancements
|
1
|
|
5
|
Paradise restoration
and rebuild
|
—
|
|
23
|
2020 Zogg fire
settlement
|
1
|
|
1
|
Investigation
remedies (pre-tax)
|
$
4
|
|
$
32
|
Tax impacts
|
(1)
|
|
(8)
|
Investigation
remedies (post-tax)
|
$
3
|
|
$
24
|
|
|
(6)
|
The Utility recorded $8
million (before the tax impact of $2 million) and $33 million
(before the tax impact of $9 million) during the three months and
year ended December 31, 2023 related to 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.
|
|
|
(7)
|
The Utility recorded $4
million (before the tax impact of $1 million) during the year ended
December 31, 2023 of one-time costs related to repositioning
PG&E Corporation's and the Utility's operating
model.
|
|
|
(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
December 31, 2023
|
|
Year Ended
December 31, 2023
|
2019 Kincade
third-party claims
|
$
100
|
|
$
100
|
2019 Kincade
fire-related costs
|
2
|
|
8
|
2020 Zogg fire-related
costs
|
1
|
|
18
|
2020 Zogg fire-related
insurance recoveries
|
—
|
|
(4)
|
2020 Zogg fire-related
legal settlements
|
—
|
|
50
|
2021 Dixie
fire-related legal settlements
|
3
|
|
20
|
Wildfire-related
costs, net of insurance (pre-tax)
|
$
106
|
|
$
193
|
Tax impacts
|
(30)
|
|
(43)
|
Wildfire-related
costs, net of insurance (post-tax)
|
$
76
|
|
$
150
|
|
|
(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 PG&E Corporation's and the
Utility's joint Annual Report on Form 10-K for the year ended
December 31, 2023.
|
|
PG&E Corporation's 2024 Earnings Guidance
|
|
|
2024
|
EPS
guidance
|
Low
|
|
High
|
Estimated EPS on a
GAAP basis
|
~
|
$
1.10
|
|
~
|
$
1.14
|
Estimated non-core
items: (1)
|
|
|
|
|
|
Amortization of
Wildfire Fund contribution (2)
|
~
|
0.16
|
|
~
|
0.16
|
Bankruptcy and legal
costs (3)
|
~
|
0.02
|
|
~
|
0.02
|
SB 901 securitization
(4)
|
~
|
0.01
|
|
~
|
0.01
|
Investigation remedies
(5)
|
~
|
0.04
|
|
~
|
0.04
|
Prior period net
regulatory impact (6)
|
~
|
(0.01)
|
|
~
|
(0.01)
|
Wildfire-related
costs, net of insurance (7)
|
~
|
0.01
|
|
~
|
0.01
|
Estimated EPS on a
non-GAAP core earnings basis
|
~
|
$
1.33
|
|
~
|
$
1.37
|
|
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 2024, 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.
|
|
|
|
2024
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
Amortization of
Wildfire Fund contribution
|
~
|
$
460
|
|
~
|
$
460
|
Amortization of
Wildfire Fund contribution (pre-tax)
|
~
|
$
460
|
|
~
|
$
460
|
Tax impacts
|
~
|
(129)
|
|
~
|
(129)
|
Amortization of
Wildfire Fund contribution (post-tax)
|
~
|
$
331
|
|
~
|
$
331
|
|
|
(3)
|
"Bankruptcy and legal
costs" consists of legal and other costs associated with PG&E
Corporation's and the Utility's Chapter 11 filing.
|
|
|
|
2024
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
Legal and other
costs
|
~
|
$
50
|
|
~
|
$
50
|
Bankruptcy and legal
costs (pre-tax)
|
~
|
$
50
|
|
~
|
$
50
|
Tax impacts
|
~
|
(14)
|
|
~
|
(14)
|
Bankruptcy and legal
costs (post-tax)
|
~
|
$
36
|
|
~
|
$
36
|
|
|
(4)
|
"SB 901 securitization"
includes 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. Also included
are any earnings-impacting investment losses or gains associated
with investments related to the contributions to the customer
credit trust.
|
|
|
|
|
2024
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
SB 901 securitization
charge
|
~
|
$
33
|
|
~
|
$
33
|
Net gains related to
customer credit trust
|
~
|
—
|
|
~
|
—
|
SB 901
Securitization (pre-tax)
|
~
|
$
33
|
|
~
|
$
33
|
Tax impacts
|
~
|
(9)
|
|
~
|
(9)
|
SB901 Securitization
(post-tax)
|
~
|
$
24
|
|
~
|
$
24
|
|
|
(5)
|
"Investigation
remedies" includes costs related to the Paradise restoration and
rebuild, the Wildfires OII decision different, the settlement
agreement resolving the Safety and Enforcement Division's
investigation into the 2020 Zogg fire, and the locate and mark OII
system enhancements.
|
|
|
|
2024
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
Paradise restoration
and rebuild
|
~
|
$
10
|
|
~
|
$
10
|
Wildfires OII
disallowance and system enhancements
|
~
|
40
|
|
~
|
40
|
2020 Zogg fire
settlement
|
~
|
75
|
|
~
|
75
|
Locate and mark OII
system enhancements
|
~
|
5
|
|
~
|
5
|
Investigation
remedies (pre-tax)
|
~
|
$
130
|
|
~
|
$
130
|
Tax impacts
|
~
|
(35)
|
|
~
|
(35)
|
Investigation
remedies (post-tax)
|
~
|
$
95
|
|
~
|
$
95
|
|
|
(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.
|
|
|
|
2024
|
(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)
|
"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.
|
|
|
|
2024
|
(in millions,
pre-tax)
|
Low
guidance
range
|
|
High
guidance
range
|
2019 Kincade
fire-related costs
|
~
|
$
15
|
|
~
|
$
15
|
2020 Zogg fire-related
costs
|
~
|
5
|
|
~
|
5
|
2020 Zogg fire-related
insurance recoveries
|
~
|
(5)
|
|
~
|
(5)
|
2021 Dixie
fire-related legal settlements
|
~
|
15
|
|
~
|
15
|
Wildfire-related
costs, net of insurance (pre-tax)
|
~
|
$
30
|
|
~
|
$
30
|
Tax impacts
|
~
|
(8)
|
|
~
|
(8)
|
Wildfire-related
costs, net of insurance (post-tax)
|
~
|
$
22
|
|
~
|
$
22
|
|
Undefined, capitalized
terms have the meanings set forth in PG&E Corporation's and the
Utility's joint Annual Report on Form 10-K for the year ended
December 31, 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 on a diluted basis.
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