Corporate Responsibility and Sustainability Report 2020

Headquarters Location

San Francisco, California

Service Area

70,000 square miles in Northern and Central California

Service Area Population

Approximately 16 million people

Customer Accounts (as of December 31, 2019)

5.5 million electric distribution accounts:

• 4.8 million residential
• 0.7 million commercial, industrial and other

4.5 million natural gas distribution accounts:

• 4.2 million residential
• 0.3 million commercial and industrial

Employees (as of December 31, 2019)

Approximately 23,000 regular employees

Approximately 15,000 employees are covered by collective bargaining agreements with three labor unions:

• International Brotherhood of Electrical Workers (IBEW), Local 1245, AFL-CIO
• Engineers and Scientists of California/International Federation of Professional and Technical Engineers (ESC/IFPTE), Local 20, AFL-CIO and CLC
• Service Employees International Union (SEIU), Local 24/7

System

• 7,686 MW of PG&E-owned hydroelectric, nuclear, natural gas, solar and fuel cell generation
• Approximately 107,000 circuit miles of electric distribution lines (about 25 percent underground and 75 percent overhead) and approximately 18,000 circuit miles of electric transmission lines
• Approximately 43,000 miles of gas distribution pipelines, 6,600 miles of backbone and local gas transmission pipelines and three gas storage facilities

• 1. Includes interdepartmental natural gas sales for the purpose of electric generation but excludes other interdepartmental natural gas sales.¹

System Investments

Approximately $7 billion in capital investments in 2019 to enhance and upgrade PG&E’s infrastructure for safety, reliability and wildfire mitigation.

Contribution to State and Local Revenues

PG&E is a major contributor to the revenue that state and local governments depend on to fund critical public services. In addition to property taxes, PG&E pays franchise fees to cities and counties for the right to use public streets for gas and electric facilities.

• 1. Includes franchise fee surcharges and city franchise surcharges.¹
• 2. Property tax payments are based on a fiscal year (not calendar year).²

Financial Performance

The financial information below is derived from PG&E Corporation’s Consolidated Financial Statements at December 31, 2018 and December 31, 2019, unless otherwise indicated, which include the accounts of PG&E Corporation, the Utility and other wholly owned and controlled subsidiaries.

• 1. This is a combined annual report of PG&E Corporation and the Utility. PG&E Corporation’s Consolidated Financial Statements include the accounts of PG&E Corporation, the Utility, and subsidiaries, and have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). All amounts presented in the table above are tax-adjusted at PG&E Corporation’s statutory tax rate of 27.98%, except for certain Wildfire-related, Chapter 11-related, and 2019 GT&S capital disallowance costs, which are not tax deductible. Amounts may not sum due to rounding.¹
• 2. “Non-GAAP core earnings” is a non-GAAP financial measure and is calculated as income available for common shareholders less items non-core items. “Non-core items” include items that management does not consider representative of ongoing earnings and affect comparability of financial results between periods, consisting of the items listed in the table above. “Non-GAAP core EPS”, also referred to as “non-GAAP core earnings per share”, is a non-GAAP financial measure and is calculated as non-GAAP core earnings divided by common shares outstanding (diluted). PG&E Corporation and the Utility use non-GAAP core earnings and non-GAAP core EPS to understand and compare operating results across reporting periods for various purposes including internal budgeting and forecasting, short- and long-term operating planning, and employee incentive compensation. PG&E Corporation and the Utility believe that non-GAAP core earnings and non-GAAP core EPS provide additional insight into the underlying trends of the business, allowing for a better comparison against historical results and expectations for future performance. Non-GAAP core earnings and non-GAAP core EPS are not substitutes or alternatives for GAAP measures such as consolidated income available for common shareholders and may not be comparable to similarly titled measures used by other companies.^{2a, 2b}
• 3. “Non-core Items” include items that management does not consider representative of ongoing earnings and affect comparability of financial results between periods, consisting of the items listed in the table below:
  

  Year Ended December 31, 2019 (in millions, except per share amounts)

  	Earnings		Earnings per Common Share (Diluted)
  	2019	2018	2019	2018
  PG&E Corporation’s Non-GAAP Core Earnings	$2,074	$2,069	$3.93	$4.00
  PG&E Corporation’s Loss on a GAAP basis	$(7,656)	$(6,851)	$(14.50)	$(13.25)
  Non-core items:
  Wildfire-related costs	8,761	8,914	16.59	17.24
  Electric asset inspection costs	557	—	1.05	—
  Locate and mark penalty	39	—	0.07	—
  Chapter 11-related costs	180	—	0.34	—
  2019 GT&S capital disallowance	193	—	0.37	—
  Pipeline-related expenses	—	33	—	0.06
  Reduction in gas-related capital disallowances	—	(27)	—	(0.05)

  For information about Non-core items in 2018 and 2019, see PG&E Corporation’s and the Utility’s annual reports on Form 10-K for the years ended December 31, 2018 and December 31, 2019, respectively.^{3a, 3b}
• 4. The quarterly cash dividend on PG&E Corporation’s common stock was suspended beginning with the fourth quarter of 2017.⁴

For more information, see PG&E Corporation’s and Pacific Gas and Electric Company’s 2019 Joint Annual Report to Shareholders or Annual Report on Form 10-K for year ended December 31, 2019, which have been filed with the U.S. Securities and Exchange Commission.

Forward-Looking Statements

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