• Core Earnings Per Share (EPS) for Q4 2024: $0.31
• Core Earnings Per Share (EPS) for Full Year 2024: $1.36, representing 11% growth over 2023
• 2025 EPS Guidance Range: $1.48 to $1.52, with a midpoint up 10% from 2024
• Annual Dividend Rate for 2025: $0.10, up from $0.04 in 2024
• Non-Fuel O&M Cost Savings in 2024: 4% reduction
• Capital Investment Plan Through 2028: $63 billion
• Operating Cash Flow Growth: More than doubled from 2022
• Non-Fuel O&M Savings in 2024: Nearly $350 million
• Beneficial Load Growth: 5.5 gigawatts of new potential data center load in the pipeline

• Warning! GuruFocus has detected 8 Warning Signs with PCG.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PG&E Corp (NYSE:PCG) reported a core earnings per share growth of 11% in 2024, reaching $1.36, and has updated its 2025 guidance range with a midpoint increase of 10%.
• The company has successfully completed its equity funding needs through 2028, supporting its $63 billion capital investment plan.
• PG&E Corp (NYSE:PCG) has achieved significant cost reductions, saving 4% in non-fuel O&M costs in 2024, continuing a trend of savings from previous years.
• The company is actively pursuing beneficial load growth, with 5.5 gigawatts of new potential data center load applications, which could lead to customer electricity bill savings.
• PG&E Corp (NYSE:PCG) has maintained a strong focus on safety, with its wildfire mitigation plan and safety protocols, including public safety power shutoffs and advanced technology deployments.

Negative Points

• The recent fires in Southern California have raised concerns about the adequacy of the AB 1054 wildfire fund and the potential need for legislative changes.
• There is uncertainty regarding the financial community's confidence in the California model for wildfire risk management, which could impact investor sentiment.
• The company faces challenges in balancing the need for infrastructure investment with maintaining affordability for customers.
• PG&E Corp (NYSE:PCG) is still working towards achieving investment-grade ratings, with rating agencies taking a cautious approach due to wildfire risks.
• The potential for a multi-year legislative effort to address wildfire funding issues could delay necessary reforms and impact the company's financial outlook.

Q & A Highlights

Q: Patti, regarding the California wildfire construct, are there any improvements being worked on, or is the state taking a wait-and-see approach? A: Patricia Poppe, CEO: The potential stress on AB 1054 due to recent fires has caught the attention of policymakers. While AB 1054 is fundamentally strong, discussions are ongoing about the fund's longevity. Ann Patterson's new role as senior counsel to the governor on wildfire issues indicates the state's recognition of the importance of this matter.

Q: Can you elaborate on the load expectations for data centers and the necessary grid investments? A: Patricia Poppe, CEO: Interest in data centers has increased to 5.5 gigawatts. The main limiting factor is building out transmission infrastructure, not generation. We are working on engineering studies and have agreements with customers, expecting 90% of 1.4 gigawatts to be online by 2030.

Q: What is the legislative process and timing for potential changes to AB 1054? A: Patricia Poppe, CEO: We are optimistic about improvements before year-end. The fund benefits those harmed by wildfires, and the state understands the need to attract capital for infrastructure. The legislative track record suggests a timely response is possible.

Q: How do you view the risk of the wildfire fund issue being a multi-year legislative effort? A: Patricia Poppe, CEO: We are not ruling out a resolution this year. While broader issues exist, an incremental fix is possible. The state recognizes the importance of attracting investors and capital, and we are advocating for a timely response.

Q: How does the recent change in the cost of capital in California affect your upcoming filing? A: Patricia Poppe, CEO: We plan to file a strong case in March, aligning with other IOUs. The state has indicated no wildfire adder, but interest rates and the actual cost of capital are up, and we will make a strong case in our filing.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.