PRESS RELEASES 2017
 
 
July 27, 2017
ISSUED BY:   PG&E Corporation, 1-415-973-5930

PG&E CORPORATION REPORTS SECOND-QUARTER 2017 FINANCIAL RESULTS

Related Documents
Press Release and Selected Exhibits
Presentation and Complete Earnings Exhibits

SAN FRANCISCO, Calif. — PG&E Corporation's (NYSE: PCG) second-quarter 2017 net income after dividends on preferred stock (also called "income available for common shareholders") was $406 million or $0.79 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with $206 million, or $0.41 per share, for the second quarter of 2016. The quarter-over-quarter increase primarily reflects the timing impacts of regulatory decisions in Pacific Gas and Electric Company's 2017 General Rate Case (GRC) and its 2015 Gas Transmission and Storage (GT&S) rate case.

GAAP results include items that management does not consider part of normal, ongoing operations (items impacting comparability), which totaled $50 million of pre-tax earnings, or $0.07 per share, for the quarter. For the second quarter of 2017, these items included a cost disallowance related to the settlement pending before the California Public Utilities Commission (CPUC) in connection with the joint proposal to retire Diablo Canyon, costs for work to clear pipeline rights-of-way, and legal and regulatory costs related to the Butte fire, gas matters, and regulatory communications. These costs were partially offset by insurance recoveries related to the Butte fire.

"Our focus on delivering safe and reliable service, running our operations affordably, and supporting California's clean energy goals continued to drive solid operational and financial results in the second quarter, while positioning PG&E for long-term growth and success," said PG&E Corporation CEO and President Geisha Williams.

Second-quarter highlights included:

  • Pacific Gas and Electric Company achieved two international re-certifications for best-in-class operational standards in its gas operations. The re-certifications for both the International Organization for Standardization (ISO) 55001 and Publicly Available Specification (PAS) 55-1 standards were awarded by Lloyd's Register, the independent auditor.
  • Pacific Gas and Electric Company received Edison Electric Institute's 2017 Emergency Recovery Award for the company's response to record winter storms. Facing a record 18 major storm event days this winter, PG&E safely restored more than 2.3 million customers — the vast majority within 24 hours.
  • Pacific Gas and Electric Company received Information Week's IT Excellence Award for the development of its Mobile Asset Inspection app, which provides field inspectors with real-time information including maps, customer information, and safety and access information.
Earnings from Operations

On a non-GAAP basis, excluding items impacting comparability, PG&E Corporation's earnings from operations in the second quarter of 2017 were $440 million, or $0.86 per share, compared with $330 million, or $0.66 per share, in the second quarter of 2016.

The increase in quarter-over-quarter earnings from operations reflected additional authorized revenue as a result of the 2017 GRC decision, the timing impacts of the phase-two decision in the 2015 GT&S rate case issued December 1, 2016, and growth in rate base earnings.   

Earnings Guidance

PG&E Corporation is updating 2017 guidance for projected GAAP earnings in the range of $3.54 to $3.79 per share. On a non-GAAP basis, the guidance range for projected 2017 earnings from operations remains unchanged at $3.55 to $3.75 per share.

Guidance is based on various assumptions and forecasts, including those relating to future authorized revenues, expenses, capital expenditures, rate base, equity issuances, and certain other factors. PG&E Corporation discloses historical financial results and provides guidance based on "earnings from operations" in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of items impacting comparability. See the accompanying tables for a reconciliation of earnings from operations to consolidated income available for common shareholders.

Supplemental Financial Information

In addition to the financial information accompanying this release, presentation slides for today's conference call with the financial community have been furnished to the Securities and Exchange Commission (SEC) and are available on PG&E Corporation's website at: http://investor.pgecorp.com/financials/quarterly-earnings-reports/default.aspx.

Access to Regulatory Filings

PG&E Corporation and Pacific Gas and Electric Company routinely provide links to regulatory proceedings with the CPUC and the Federal Energy Regulatory Commission (FERC) at http://investor.pgecorp.com, under the "Regulatory Filings" tab, so that such filings are available to investors upon filing with the relevant agency. It is possible that these regulatory filings or information included therein could be deemed to be material information. 

Conference Call with the Financial Community to Discuss Financial Results

Today's call at 11:00 am, Eastern Time, is open to the public on a listen-only basis via webcast. Please visit http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx for more information and instructions for accessing the webcast. The webcast call and the related materials will be available for replay through the website for at least one year. Alternatively, a toll-free replay of the conference call may be accessed shortly after the live call through August 10, 2017, by dialing (866) 415-9493. International callers may dial (205) 289-3247. For both domestic and international callers, the confirmation code 3250# will be required to access the replay.

About PG&E Corporation

PG&E Corporation (NYSE: PCG) is a Fortune 200 energy-based holding company, headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000 square-mile service area in Northern and Central California. For more information, visit http://www.pgecorp.com. In this press release, they are together referred to as "PG&E."

Forward-Looking Statements

Management's statements providing guidance for PG&E Corporation's 2017 financial results and the assumptions and forecasts underlying such guidance constitute forward-looking statements that reflect management's judgments and opinions. These statements, assumptions and forecasts are necessarily subject to various risks and uncertainties, the realization or resolution of which may be outside management's control.Actual results may differ materially. Factors that could cause actual results to differ materially include, but are not limited to:

  • the timing and outcomes of the two TO rate cases pending before the FERC, and other ratemaking and regulatory proceedings;
  • the timing and outcome of the Butte fire litigation; whether insurance is sufficient to cover the Utility's liability resulting therefrom; the timing and outcome of any proceeding to recover costs in excess of insurance from customers, if any; the effect, if any, of the SED's $8.3 million citations issued in connection with the Butte fire may have on the Butte fire litigation; and whether additional investigations and proceedings in connection with the Butte fire will be opened and any additional fines or penalties imposed on the Utility;
  • the outcome of the probation and the monitorship, the timing and outcomes of the debarment proceeding, the SED's unresolved enforcement matters relating to the Utility's compliance with natural gas-related laws and regulations, and other investigations that have been or may be commenced, and the ultimate amount of fines, penalties, and remedial and other costs that the Utility may incur as a result;
  • the timing and outcomes of the ex parte OII and the safety culture OII;
  • the Utility's ability to control its costs within the authorized levels of spending and the extent to which the Utility incurs unrecoverable costs that are higher than the forecasts of such costs;
  • the impact that reductions in customer demand for electricity and natural gas have on the Utility's ability to make and recover its investments through rates and earn its authorized return on equity; whether the Utility is successful in addressing the changing industry landscape, including the impact of growing distributed and renewable generation resources, changing customer demand for natural gas and electric services, and an increasing number of customers departing for community choice aggregators;
  • the impact of the increasing cost of natural gas regulations;
  • whether the Utility can continue to obtain insurance and whether insurance coverage is adequate for future losses or claims, especially following a major event that causes widespread third-party losses;
  • changes in estimated environmental remediation costs, including costs associated with the Utility's natural gas compressor sites;
  • the ability of PG&E Corporation and the Utility to access capital markets and other sources of debt and equity financing in a timely manner on acceptable terms, and the amount and timing of additional common stock and debt issuances by PG&E Corporation;
  • the outcomes of current and future self-reports, investigations or other enforcement proceedings that could be commenced or notices of violation that could be issued relating to the Utility's compliance with laws, rules, regulations, or orders applicable to its operations;
  • the outcome of federal or state tax audits and the impact of any changes in federal or state tax laws, policies, regulations, or their interpretation, including as a result of the recent changes in the federal government;
  • the impact of changes in GAAP, standards, rules, or policies, including those related to regulatory accounting, and the impact of changes in their interpretation or application; and
  • the other factors disclosed in PG&E Corporation and the Utility's joint annual report on Form 10-K for the year ended December 31, 2016, their joint quarterly reports on Form 10-Q for the quarters ended March 31 and June 30, 2017, and other reports filed with the Securities and Exchange Commission (SEC), which are available on PG&E Corporation's website at http://www.pgecorp.com and on the SEC website at www.sec.gov.
 

 

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