PG&E Corp.

Core earnings + guidance reaffirmed (good) - Q3 2026 core EPS: $0.41; core EPS YTD (1st 9 months): $1.24 vs $1.14 LY (+~9%). - Reaffirmed 2026 core EPS guidance: $1.64–$1.66 (about +10% vs 2025 at the midpoint). - Reaffirmed 2027 core EPS guidance: $1.78–$1.82 (about +9% at the midpoint). - No guidance beyond 2027 because of an ongoing strategic review.

Strategic review: goal is investment-grade + capital structure options (opportunity, with execution/regulatory risk) - PG&E is assessing “how PG&E is organized and financed” with a foundational objective: achieve/maintain investment-grade ratings to reduce financing costs. - Evaluating pathways such as capital allocation changes, regulatory reforms, and revisiting corporate structure (examples mentioned: ring fencing, sales/separations), aiming to reduce the discount from wildfire risk that burdens parts of the business with little/no exposure. - Timeline: more definitive outcome “no later than next summer” (with ongoing updates through earnings calls). - Key risk: some solutions depend heavily on regulator/legislature approval and could face long lead times.

Wildfire policy reform remains the “fastest” solution, but legislation not yet enacted (bad + key risk factor) - Management emphasized comprehensive wildfire reform has not yet been enacted; tail risk under current framework remains. - The framework has evolved (SB 901 → AB 1.05 → SB 254), including self-insurance up to $1B, liquidity from wildfire fund/continuation account, revised prudency, presumption of prudency for certified utilities, and limits on reimbursements if imprudent. - Despite progress, leadership said major work remains and cited ongoing pressure from Governor Newsom, CPUC, wildfire fund administrator, and rating agencies. - Near-term “signal”: CPUC report due Nov 1 (requested by the Governor) expected to document the unsustainable customer impact of the status quo.