Pacific Gas and Electric Company

Earnings & guidance reaffirmed (core EPS) - 3Q 2026 core EPS: $0.41; 1–9 months core EPS: $1.24 vs $1.14 prior year (growth supports full-year delivery). - 2026 core EPS guidance reaffirmed: $1.64–$1.66 (~+10% YoY at midpoint). - 2027 core EPS guidance reaffirmed: $1.78–$1.82 (~+9% at midpoint). - No guidance beyond 2027 because of an ongoing strategic review (but management says financing needs are already addressed through 2030).

Wildfire liability reform is the central catalyst—and the main risk - Management repeatedly emphasizes that comprehensive wildfire policy reform has not yet been enacted, so the status quo remains unacceptable. - They argue inaction keeps financing costs too high and prevents PG&E from reaching investment grade. - Expected near-term external milestones: CPUC report requested by Governor due Nov 1, described as likely to reinforce why the current framework is unsustainable.

Strategic review: objective is investment-grade credibility and value unlock (with multiple structure options) - Company is assessing “full range of options” for how PG&E is organized/financed, including possibilities such as ring fencing and sales/separations. - Foundational goal: achieve investment-grade credit ratings (seen as critical to lowering the cost of capital and improving customer outcomes). - Evaluation framework (based on Q&A): - “Unlock value” and target investment-grade outcomes. - Must be feasible to execute and reduce reliance on factors out of PG&E’s control. - Example rationale: PG&E’s gas business (~4M customers) is effectively borrowing at sub-investment-grade costs due to wildfire risk being held at the consolidated level; strategic alternatives may allow regulatory-approved isolation of risk/value. - Timing: expects more definitive outcome by next summer, while continuing to pursue alternatives in parallel if opportunities/fillings become possible sooner.