Pacific Gas & Electric Co. Q3 FY2025 earnings call

• Core earnings per share: $0.50 for Q3 2025 and $1.14 for first nine months of 2025.
• Narrowed 2025 full-year EPS guidance to $1.49-$1.51 (previously $1.48-$1.52) with bias toward midpoint, and introduced 2026 EPS guidance of $1.62-$1.66.
• Extended 5-year capital plan through 2030: $73 billion plan, 9% EPS growth annually 2026-2030, no new equity required through 2030.
• Wildfire mitigation: Year-to-date CPUC reportable ignitions down over 35% from 2024; 1,000 miles of power lines underground in highest fire-risk areas; cleared vegetation around 4,000 transmission structures; deployed 8,500 sensor devices.
• Data centers: Robust pipeline over 9.5 gigawatts, most projects 100 MW or less; partnered with San Jose to identify land for data centers.
• O&M cost savings: Achieved $0.05 for Q3 and $0.08 year-to-date, on track to meet 2% reduction target.

No detailed product segment financial performance provided in the transcript

• Narrowed 2025 full-year EPS guidance range to $1.49-$1.51 from $1.48-$1.52.
• Introduced 2026 EPS guidance range of $1.62-$1.66.
• Extended 5-year capital plan through 2030 with $73 billion investment, 9% EPS growth annually 2026-2030, no new equity required.

• Climate-related wildfire risk: Continued elevated risk despite mitigation efforts.
• Regulatory and policy uncertainties: Uncertainties around SB 254 Phase 2 process, cost of capital proceeding outcomes.

Q: On SB 254 process, any sense of when details might be public?

A: Stakeholder abstracts due Nov 3, full submissions Dec 12, state agencies final recommendations Jan 30, CEA final study Apr 1.

Q: On cost of capital case, when is proposed order?

A: Expected in November 2025.

Q: Phase 2 policy reform recommendations and legislature buy-in?

A: Phase 1 had improvements like moving disallowance cap date to ignition, rebalanced utility funding; Phase 2 process ongoing with governor's executive order emphasizing whole of government approach.

Q: Undergrounding decision track?

A: Commission meeting Oct 30 on 10-year undergrounding procedure; undergrounding remains appropriate in highest risk areas, with 1,000 miles already underground.

Q: Data center pipeline and capital raising?

A: Pipeline has final engineering projects, expected 95% online by 2030; beneficial for customers and investors, driving bill reductions and local revenue.

Q: Credit upgrades and milestones?

A: Fitch upgraded parent company rating; ongoing conversations with Moody's and S&P, looking for progress on Phase 2 as trigger.

Q: O&M target and upside?

A: On track to meet 2% reduction target, driver of affordable model.

Q: Comfort with 2026 EPS guidance before cost of capital resolution?

A: Plan conservatively, will deliver as promised.

Q: Storage projects as blueprint?

A: CRC energy storage microgrid with Energy Vault is a blueprint for high-risk communities, to minimize outages during public safety power shutoffs.

Q: Payout ratio beyond 2028?

A: Maintaining 20% payout ratio through 2030.