Pacific Gas & Electric Co. Q2 FY2025 earnings call

• Physical protection: Deployed over 10,000 sensors in high-risk areas, expanded PSPS model to include more areas, and executed 4 PSPS events in 2025.
• Affordability: Bills went down in 2025, forecast flat for remainder of 2025, down in 2026, and potential further decreases in 2027; data center pipeline growth offers potential rate benefits.
• Cost savings: Annual nonfuel O&M cost reductions exceeded $200 million in recent years, with AI and new technologies driving potential upside in O&M savings.

Core earnings per share for the second quarter were $0.31, and $0.54 for the first half of 2025. Full-year guidance remains in the range of $1.48 to $1.52, up 10% over 2024. The company's data center pipeline is growing, with 10 gigawatts actively worked, representing more than 50 projects.

• Reaffirmed full-year 2025 guidance of $1.48 to $1.52 with a bias toward the midpoint, up 10% over 2024.
• Reaffirmed 5-year financial plan through 2028 with EPS growth 10% in 2025 and at least 9% each year 2026-2028; $63 billion capital investments planned.
• Focus on legislative clarity to roll forward plans and maintain financial flexibility in financing.

• Legislative uncertainty, including potential negative impacts of securitization proposals on customer bills.
• Uncertainty around wildfire fund financing and potential need for equity issuance, with PG&E opposing equity issuance for wildfire fund.
• Dependence on legislative outcomes affecting affordability and wildfire mitigation funding.

Q: Concerns on securitization and wildfire fund equity needs A: Patti Poppe clarified no support for securitization, stating it would result in bills going up, and no need for upfront equity for wildfire fund, emphasizing the state's pattern of doing the right thing legislatively Q: Thoughts on data center pipeline and timing A: Patricia Kessler Poppe discussed San Jose projects starting construction in late 2026/early 2027, with rate benefits likely starting in 2027 Q: O&M reduction potential A: Patti Poppe mentioned AI and new technologies in inspection and vegetation management driving potential upside in O&M savings