Pacific Gas & Electric Co. Q1 FY2026 earnings call

Good morning, CEO Patti Poppe reports strong first quarter progress. Core earnings per share at 43 cents, on track for full year 2026 guidance. Lowered electric rates five times since Jan 2024, with vulnerable residential customers' bundled rates down 23%. Diablo Canyon Nuclear Power Plant received final state permits and 20-year license extension. Focused on helping California build wildfire solution with CEA report. Wildfire mitigations including PSPS, EPSS, continuous monitoring. Progress in enabling rate-reducing load growth with projects in development pipeline. Continuous monitoring avoiding unplanned customer outage minutes.

Not explicitly broken down by product segments; focuses on overall company financial progress with core earnings per share for first quarter at 43 cents, on track for full year 2026 core EPS guidance of $1.64 to $1.66

Reaffirms full year 2026 core EPS guidance of $1.64 to $1.66, midpoint implies 10% growth over 2025. Reaffirms EPS growth guidance for 2027 through 2030 at 9% plus annually. Reaffirms five-year capital and financing plans with zero new equity issuance needs through 2030.

Wildfire liability risk where tail risk not modeled or quantified, potential legislative progress not meeting expectations affecting capital allocation and investor confidence

Q: Char Perez asks about capital allocation if CEA report aspects don't fully pass.

A: Patti Poppe says encouraged by progress, minimum outcome needed to prevent additional costs, capital allocation plan working now but would reevaluate if essential outcome not met.

Q: Nicholas Campanella follows up on legislation, what's sufficient.

A: Importance of whole-of-society approach, need to model wildfire tail risk for investors, shareholder contributions depend on totality of legislative action.

Q: Steve Fleshman asks about wildfire report proposals.

A: Importance of whole-of-society look including community hardening, liability reform, state backstop.

Q: David Acaro asks about data center demand and bill reduction.

A: Third cluster study shows interest, word getting out about California's capacity, forecast 1.8 gigawatts online by 2030 to reduce rates.

Q: Anthony Cordell asks about final engineering to construction and $5 billion incremental opportunities.

A: High conversion expected but final details being buttoned up, $73 billion plan incorporates various investments.

Q: Greg Orrill asks about rate case settlement.

A: Evidentiary hearings in May, open to settlement but CPUC likes fully adjudicated GRC.

Q: Ryan Levine asks about summer weather and credit metrics.

A: Focus on being prepared regardless of weather, credit metrics plan built around no equity, maintaining dividend, modest debt, will reevaluate capital allocation if needed.

Q: Richard Sunderland asks about SB 254 Phase 2 process.

A: Hoping for hearings in May, hearings important for complex subject.

Q: Carly Davenport asks about TISO transmission project and Diablo Canyon.

A: Transmission planning process awarded projects, Diablo Canyon license renewal with legislature needed for extension beyond 2030 with cost benefits