PG&E Corp. - Units

Strong earnings & reaffirmed guidance (good): - PG&E reported Q1 2026 core EPS of $0.43, +$0.10 vs. Q1 2025, and said performance keeps the company on track for full-year results. - Reaffirmed 2026 core EPS guidance: $1.64–$1.66 (midpoint implies ~10% growth vs. 2025, and would be the 5th straight year of double-digit core EPS growth). - Outlook for 2027–2030 remains unchanged: ~9%+ annual EPS growth.

Affordability momentum via rate cuts + “path to flat” (good, with measurable wins): - PG&E lowered electric rates five times since Jan 2024; most vulnerable bundled residential rates are down 23% since Jan 2024, and other residential rates down 13% (about $300/year). - Management highlighted a “simple, affordable model” targeting customer bill growth of 0% to 3% (the “path to flat”), supported by O&M reductions, disciplined capex, and financing efficiency.

Wildfire reform is the key swing factor; capital allocation remains disciplined but conditional (mixed/good with risk): - Company is encouraged by the CEA report and ongoing legislative work, emphasizing a “whole of society” approach (hardening + liability reform + state backstop). - Minimum investor/shareholder-protection is essential: management wants a regime where wildfire tail risk is modelable/quantifiable for capital providers. - If reform doesn’t reach a sufficient outcome, PG&E said it would actively reevaluate its entire capital allocation plan (buyback/dividend/capex mix implied “on the table,” though no specifics given). - Boardroom-level takeaway: progress is positive, but the tail-risk + shareholder contribution debate remains unresolved and is a direct risk to capital strategy.