PG&E Corp. - Units

Earnings / forecast beat & momentum - Core EPS: $0.40 for Q2 2026; $0.83 for 1H 2026 (management cites +$0.19 vs. 1H 2025), helped by customer capital investment ($+0.09) and O&M savings/redeployment (+$0.03 net); some timing items are expected to reverse later in the year. - Full-year guidance unchanged: Core EPS $1.64–$1.66 (midpoint up ~10% vs 2025), and management reiterated confidence in delivery. - Medium-term growth target: ~9%+ annual core EPS growth from 2027–2030 (per stated plan).

“Simple Affordable Model” progress (customers + performance) - Affordability: residential bundled electric rates are cited as down 23% since Jan 2024 for the most vulnerable customers; company remains committed to flat customer bill growth targeting 0%–3% annually. - Operational outcomes: Reliability +23% YTD (fewer outages and faster restoration). - Wildfire/safety outcomes: 4th year with zero major fires linked to PG&E equipment and zero structures destroyed (also tied to continuous monitoring effectiveness). - Surprising operational detail: since Jan 2025, continuous monitoring helped avoid ~20 million outage minutes, 28 ignitions in high fire risk areas, and 5,000+ emergency response hours, saving >$11M via lower-cost repairs (management’s “performance is power” narrative).

Data center load growth opportunity (major upside case) - Pipeline update: additional interest from the 2026 cluster study drives demand; PG&E says pipeline is now >12 GW (up from >10 GW preapplication interest last quarter). - Quality gating tightened: higher thresholds for inclusion in preliminary/final engineering; signed work performance agreement + ~10% financial commitment becomes a prerequisite to enter final engineering. - Planning assumption: expects about ~1.8 GW of new load online by 2030 (with the possibility of increasing if certain projects achieve faster timelines, e.g., direct connect / 500kV pathways). - Pricing constraint: management repeatedly emphasized load must be rate-reducing (i.e., attractive to data centers *and* not hurting other customers).