PG&E is like the AT&T of electricity and natural gas for Northern and Central California.

PG&E is like the Comcast of electricity and natural gas for Northern and Central California.

• Electricity Services: Providing electric power generation, transmission, and distribution to residential, commercial, and industrial customers across its service area.
• Natural Gas Services: Delivering natural gas through a vast pipeline network for heating, cooking, and other uses to residential, commercial, and industrial customers.

PG&E (Pacific Gas and Electric Company, symbol: PCG) is a regulated utility company that provides natural gas and electricity primarily to end-users in northern and central California. As a utility, it sells directly to customers within its service territory, rather than primarily to other companies for resale.

The company serves the following major categories of customers:

• Residential Customers: This category includes individual households and families that use electricity and natural gas for their homes. This represents the largest customer segment by the number of accounts.
• Commercial Customers: This segment comprises a wide range of businesses, including small and medium-sized enterprises, retail stores, offices, restaurants, and other non-industrial commercial establishments that require energy for their operations.
• Industrial Customers: This category consists of large-scale businesses and facilities with significant energy demands, such as manufacturing plants, data centers, agricultural operations, and other industrial processes.

• NextEra Energy (Symbol: NEE)
• Vistra Corp. (Symbol: VST)

Patricia K. Poppe, Chief Executive Officer

Joined PG&E in January 2021. She previously served as President and CEO of CMS Energy and its subsidiary, Consumers Energy, from July 2016 to December 2020. Her decade-long career at CMS Energy included leadership positions in distribution operations, engineering, transmission, customer experience, rates, regulation, and customer operations. Before CMS Energy, she was a Power Plant Director at DTE Energy for five years. Prior to DTE, she worked for General Motors for 15 years in various plant management roles, including managing the Lordstown manufacturing plant. Poppe is recognized as the first female executive to serve as CEO of one Fortune 500 company and subsequently become CEO of another.

Carolyn Burke, Executive Vice President and Chief Financial Officer

Assumed the role of Executive Vice President and Chief Financial Officer at PG&E, effective May 4, 2023. She possesses extensive leadership and turnaround experience gained from Fortune 500 energy and financial services companies. Her prior positions include Executive Vice President and Chief Financial Officer at Chevron Phillips Chemical Company. She also served as Executive Vice President, Strategy at Dynegy, where she was instrumental in the company's emergence from bankruptcy. Earlier in her career, she was Global Controller, Investment Bank, Global Commodities at JP Morgan Chase, and Vice President and Corporate Controller at NRG Energy, Inc., where she contributed to rebuilding its finance team during a turnaround. Burke founded and operated FSC Internet, Corp. (later Assurent Security Technologies) from 1993 to 2002, a company that was subsequently acquired by Telus in 2006. She also founded Integrity Incorporated in 2002.

Ajay Waghray, Executive Vice President and Chief Information Officer

Appointed as Senior Vice President and Chief Information Officer of PG&E Corporation in September 2020. He brings over 30 years of experience leading information technology organizations in diverse and highly regulated industries. Prior to PG&E, he was Managing Partner of Agni Growth Ventures, offering advisory services on big data, security, machine learning, and artificial intelligence strategies. He previously served as Chief Technology Officer of Assurant, a Fortune 500 global provider of risk management products and services. Waghray also held the position of CIO for Verizon Enterprise Solutions and Verizon Wireless.

Carla J. Peterman, Executive Vice President, Corporate Affairs & Chief Sustainability Officer

Her career has been dedicated to California's energy policy and regulatory environment. Before joining PG&E in 2021, she was Senior Vice President of Strategy and Regulatory Affairs at Southern California Edison. She also served a six-year term as a Commissioner of the California Public Utilities Commission (CPUC), where she notably led the adoption of the nation's first utility energy storage mandate and approved significant utility investments in electric vehicle charging infrastructure.

Sumeet Singh, Executive Vice President, Operations and Chief Operating Officer

Began his career at PG&E in 2000 as an engineer. His experience at the company encompasses various roles in natural gas distribution and transmission engineering, as well as in Finance and Energy Procurement. Singh also served as the Gas Safety and Integrity Officer at Picarro Inc., where he focused on leveraging innovative technology to enhance the safety and cleanliness of natural gas systems. He is a registered professional Civil Engineer in California and currently serves on the board of GTI Energy.

The key risks to PG&E's (PCG) business are dominated by its exposure to wildfires, the associated regulatory and legal pressures, and the substantial costs related to upgrading its aging infrastructure.

1. Wildfire Risk and Liabilities: PG&E faces significant and ongoing risks from wildfires, largely due to its extensive service territory in California and its history of equipment-related ignitions. The increased frequency and intensity of wildfires, exacerbated by climate change and drought, present substantial financial and operational challenges. The company has incurred billions in liabilities, settlements, and has undergone bankruptcy proceedings as a direct result of fires caused by its infrastructure. Despite significant investments in wildfire mitigation efforts, such as undergrounding power lines and enhanced vegetation management, this remains the most critical and prominent risk to the business.

2. Regulatory and Legal Pressures: Operating within California's highly scrutinized environment, PG&E is under intense oversight from the California Public Utilities Commission (CPUC) and the Office of Energy Infrastructure Safety. This regulatory scrutiny stems largely from its wildfire record and has led to strict conditions, potential penalties, and requirements for extensive safety improvements. Adverse regulatory decisions regarding cost recovery, rate structures, or enforcement actions can directly impact the company's financial performance and operational flexibility. Furthermore, legislative uncertainties surrounding wildfire funds and liability caps add another layer of risk.

3. Aging Infrastructure and High Capital Expenditure: A fundamental driver of PG&E's wildfire risk is its aging and inadequately maintained infrastructure. The company is undertaking a massive, multi-year investment program to modernize its grid, harden its system, and underground thousands of miles of power lines to reduce ignition risks and improve reliability. These capital expenditures are substantial and necessary, but delays, cost overruns, or challenges in execution can strain the company's cash flows and financial health, impacting its ability to meet other obligations and grow.

Clear emerging threats for PG&E (PCG) include:

• Decentralization of Energy Production (Distributed Energy Resources - DERs): The increasing adoption of rooftop solar, battery storage, and microgrids allows customers to generate and store their own electricity, reducing their reliance on PG&E for energy supply. This trend, driven by falling technology costs and supportive policies in California, directly erodes the utility's traditional volumetric sales and revenue base by enabling customers to partially or fully defect from purchasing power from PG&E.
• Growth of Community Choice Aggregators (CCAs): CCAs are local government entities that procure electricity on behalf of their residents and businesses, taking over the energy supply function from PG&E. While PG&E continues to own and operate the transmission and distribution infrastructure, the rapid expansion of CCAs in its service territory results in PG&E losing its direct customer relationship for energy generation and the associated revenue stream, shifting a significant portion of the electricity market to these local entities.

PG&E (PCG) anticipates several key drivers for its future revenue growth over the next two to three years:

1. Significant Capital Investments and Rate Base Growth: PG&E plans substantial capital expenditures, including a $73 billion five-year capital agenda for 2026-2030, which is projected to drive an average annual rate base growth of approximately 9%. These investments are focused on modernizing and enhancing infrastructure, particularly in electric distribution and transmission.
2. Increased Energy Demand from Customer Growth and Electrification Trends: The company expects growth in electric load stemming from several trends, including the addition of new electric customers, the expansion of its data center project pipeline (reaching 10 gigawatts), the increasing adoption of electric vehicles, and broader building electrification initiatives across its service territory.
3. Regulatory-Approved Revenue Mechanisms: As a regulated utility, PG&E's revenue is fundamentally linked to its approved rate base and the returns authorized by the California Public Utilities Commission (CPUC). The extensive capital investments described above contribute to a larger rate base, allowing the company to earn a regulated return, which in turn drives revenue growth.

Share Repurchases

• PG&E's 3-Year Share Buyback Ratio was -3.40% as of June 2025, and its 6-Month Share Buyback Ratio was -0.19% as of June 2025, indicating no significant share repurchases or potential share issuance.
• Repurchase of Stock for the trailing twelve months ended September 2025 was $0 million.

Share Issuance

• In December 2024, PG&E announced concurrent public offerings of $1.2 billion in common stock and $1.2 billion in Series A Mandatory Convertible Preferred Stock, with proceeds intended to support its five-year capital investment plan.
• As of July 31, 2025, PG&E had already issued the equity needed to fund its $63 billion investment plan through 2028 and has no intention of issuing additional equity at current levels.
• Equity dilution was cited as a factor for a decrease in core earnings per share by 4 cents in the first half of 2025 compared to the first half of 2024.

Capital Expenditures

• PG&E has outlined a five-year capital plan totaling $63 billion through 2028, with 82-93% of this investment already authorized by regulators.
• The company plans to invest $73 billion in capital expenditures from 2026 to 2030, primarily focused on transmission upgrades to meet growing energy demand, especially from data centers.
• A key focus of capital expenditures includes hardening the system against extreme weather, mitigating wildfire risk through projects like undergrounding power lines, and improving overall infrastructure reliability.