Pacific Gas & Electric Co. Q4 FY2025 earnings call

Patricia Kessler Poppe started by noting 2025 core earnings per share at midpoint $1.50, up 10% from 2024, marking fourth consecutive year of double-digit core EPS growth. She raised and tightened 2026 core EPS guidance range to $1.64 to $1.66. On safety, 2025 had 43% reduction in serious injuries/fatalities and 30% improvement in serious preventable motor vehicle incident rate. Reliability improved 19% systemwide. Affordability: fourth rate reduction in two years, bundled residential electric rates 11% lower than Jan 2024. Wildfire efforts: ignitions down 43%, third year without major fire caused by equipment; launched EmberPoint with Lockheed Martin, and five finalists in XPRIZE Wildfire. Regulatory updates: CPUC revised undergrounding guidelines, filing for ten-year undergrounding plan. Load growth: 3.6 gigawatts of data center demand in final engineering stage. O&M savings: 2.5% reduction in 2025, updated simple, affordable model to 0%-3% bill growth.

2025 core EPS at midpoint $1.50, up 10% from 2024. Raised 2026 core EPS guidance range to $1.64-$1.66, midpoint implies 10% growth. Reaffirmed 9%+ annual growth from 2027-2030. 2026 plans to expand continuous monitoring capabilities, including smart meters.

Uncertainties in wildfire policy reform and legislative outcomes affecting affordability and investment. Current model putting excessive burden on customers and IOUs. Contingent contributions to the continuation account and their potential impact.

Q: Nicholas Joseph Campanella asked about the CEA process, what's most encouraging and view on legislative timing.

A: Patricia Kessler Poppe said CEA is on track, support actionable solutions, need to focus on risk reduction, affordability. If progress stops, all aspects of plan on table.

Q: Steven Isaac Fleishman asked about CPUC view and influence on legislature.

A: Patricia Kessler Poppe said CPUC sees current model as regressive, supports whole-society approach, hope CPUC advocacy helps with SB 254.

Q: Anthony Crowdell asked about new faces in legislature and their support.

A: Patricia Kessler Poppe said been in conversation with leadership, need to educate on business model where profits and lower rates go hand-in-hand.

Q: Julien Patrick Dumoulin-Smith asked about upside capital, financing, and JSON.

A: Carolyn J. Burke said $5B can be used to make plan better for affordability, prioritize avoiding equity, maintain FFO-to-debt mid-teens.

Q: Carly S. Davenport asked about data center pipeline and wildfire policy timeline.

A: Patricia Kessler Poppe said data center growth is part of 0%-3% bill growth, wildfire policy hoped to be resolved in current legislative session.

Q: Gregg Gillander Orrill asked about Kincaid and Dixie cost recovery.

A: Carolyn J. Burke said filed for recovery of costs associated with Dixie and Kincaid, looking for recovery of WEMA and CEMA costs.

Q: Ryan Michael Levine asked about prudency determination through CEA.

A: Patricia Kessler Poppe said CEA process will consider bundle of options for downside risk knowability and affordability.