Press release·10/23/2025 12:00:56

OVERVIEW

This combined Form 10-Q of PG&E Corporation and the Utility includes separate Condensed Consolidated Financial Statements for each of these two entities. The discussions related to the results of operations and liquidity for the three and nine months ended September 30, 2024 compared to the same periods in 2023 are incorporated by reference to the previous Form 10-Q filing.

Key Factors Affecting Financial Results

The key factors that could materially affect PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows include:

1. The Uncertainties in Connection with Wildfires, Wildfire Mitigation, and Associated Cost Recovery: PG&E Corporation and the Utility have taken aggressive steps to mitigate wildfire risk, but the potential for the Utility’s equipment to be involved in future wildfires remains significant. The financial impact of past wildfires is substantial, and PG&E Corporation and the Utility may not be able to fully mitigate the financial impact of future wildfires through insurance, the Wildfire Fund, the Continuation Account, or regulatory recovery.

2. The Timing and Outcome of Ratemaking and Other Proceedings: Regulatory ratemaking proceedings are a key aspect of the Utility’s business, and the outcome of these proceedings can significantly impact the Utility’s financial results.

3. PG&E Corporation’s and the Utility’s Ability to Control Operating and Financing Costs: The Utility’s earnings depend on its ability to manage costs within authorized amounts, and PG&E Corporation and the Utility work to reduce financing costs.

Tax Matters

PG&E Corporation had significant net operating loss carryforwards as of December 31, 2024. The Amended Articles of Incorporation contain restrictions on the acquisition or accumulation of PG&E Corporation’s stock to prevent an ownership change that could limit the use of these tax attributes.

RESULTS OF OPERATIONS

PG&E Corporation

PG&E Corporation’s consolidated results of operations consist primarily of results related to the Utility. PG&E Corporation’s net loss primarily consists of interest expense on long-term debt.

Utility

The Utility’s operating revenues and expenses are summarized in the tables provided. Key points include:

• Operating revenues increased in the three and nine months ended September 30, 2025 compared to the same periods in 2024, primarily due to increased revenues to recover costs associated with extended operations at Diablo Canyon Power Plant (DCPP) and interim rate relief.

• Cost of electricity and natural gas increased or decreased based on changes in procurement costs and other factors.

• Operating and maintenance expenses decreased in the three months ended September 30, 2025 but increased in the nine months ended September 30, 2025 compared to the same periods in 2024, due to a mix of factors including costs related to DCPP operations, interim rate relief, and disallowances.

• Wildfire-related claims, net of recoveries, and Wildfire Fund expense varied period-over-period.

• Interest income decreased and interest expense decreased due to changes in interest rates and debt levels.

• Income tax benefit increased due to an increased tax repairs deduction and an additional deduction for certain electric generation costs.

LIQUIDITY AND FINANCIAL RESOURCES

PG&E Corporation and the Utility expect to be able to generate and obtain adequate cash to meet their cash requirements. They rely on access to debt and equity markets and credit facilities to finance their capital requirements and support their liquidity needs.

As of September 30, 2025, PG&E Corporation and the Utility had $6.1 billion of total liquidity. PG&E Corporation has completed the planned equity financing for its $73 billion capital expenditure plan for 2026-2030. The Utility has issued various long-term debt and short-term debt to meet its financing needs.

PG&E Corporation and the Utility paid common stock and preferred stock dividends during the periods presented.

The Utility’s cash flows from operating, investing, and financing activities are discussed, including the key factors that could affect future cash flows.

REGULATORY MATTERS

PG&E Corporation and the Utility are subject to extensive regulation, and the outcomes of various regulatory proceedings can significantly impact their financial condition and results of operations. Key regulatory matters discussed include:

• Cost Recovery Proceedings: The Utility has recorded significant amounts in various memorandum and balancing accounts, and the recovery of these costs is subject to CPUC authorization.

• Wildfire Mitigation and Catastrophic Events Cost Recovery Applications: The Utility has filed several applications seeking recovery of costs related to wildfire mitigation and catastrophic events.

• Forward-Looking Rate Cases: The Utility participates in rate case proceedings to establish its revenue requirements, including its General Rate Case and Cost of Capital proceedings.

• Other Regulatory Proceedings: The Utility’s Wildfire Mitigation Plans, distribution undergrounding program, and other initiatives are subject to regulatory review and approval.

LEGISLATIVE AND REGULATORY INITIATIVES

The key legislative and regulatory initiative discussed is SB 254, which establishes the Continuation Account to provide additional liquidity for catastrophic wildfire-related claims if the Wildfire Fund is depleted.

ENVIRONMENTAL MATTERS and RISK MANAGEMENT ACTIVITIES have not had material changes from the previous disclosures.