• Recorded GAAP losses were $0.05 per share for the year and GAAP earnings were $0.22 per share for the fourth quarter of 2021, compared to losses of $1.05 and earnings of $0.09, respectively, per share for the same periods in 2020.
• Non-GAAP core earnings were $1.08 per share for the year and $0.28 per share for the fourth quarter of 2021, compared to $1.61 and $0.21, respectively, per share for the same periods in 2020.
• Non-GAAP core earnings were consistent with guidance for the year when adjusted for potentially dilutive securities, landing at $1.00 per share.
• 2022 EPS guidance initiated for GAAP earnings in the range of $0.89 to $1.23 and non-GAAP core earnings in the range of $1.07 to $1.13 per share.
• On February 8, 2022, Pacific Gas and Electric Company declared payment of all cumulative and unpaid dividends on its preferred shares as of January 31, 2022 and dividends that will be accrued through April 30, 2022, payable on May 13, 2022 and May 15, 2022, respectively, to shareholders of record on April 29, 2022.
• Completed Enhanced Vegetation Management work on 1,983 miles of powerlines in extreme or elevated fire-risk areas, exceeding goal by 10%.

PG&E Corporation (NYSE: PCG) recorded full-year losses of $102 million, or $0.05 per share and fourth-quarter 2021 income available for common shareholders of $472 million, or $0.22 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with losses attributable to common shareholders of $1.3 billion, or $1.05 per share, for the full year of 2020 and income available for common shareholders of $200 million, or $0.09 per share, for the fourth quarter of 2020.

GAAP results include non-core items that management does not consider representative of ongoing earnings, which totaled $2.2 billion after tax, or $1.13 per share, for the year. These results were primarily driven by costs related to the amortization of Wildfire Fund contributions under Assembly Bill (AB) 1054, PG&E Corporation’s and Pacific Gas and Electric Company’s (Utility) reorganization cases under Chapter 11 of the U.S. Bankruptcy Code (Chapter 11), 2019-2020 wildfire-related costs, investigation remedies, and prior period net regulatory recoveries.

“Our performance in 2021 confirms my confidence in our future,” said Patti Poppe, CEO of PG&E Corporation. “We met our commitments for the year, and we intend to do so again in 2022. We are a safer company than we were before. And we will use our new operational and organizational structures to build on that progress every day, making investments to produce triple-bottom-line results for people, the planet, and California’s prosperity.”

Non-GAAP Core Earnings

PG&E Corporation’s non-GAAP core earnings, which exclude non-core items, were $2.1 billion, or $1.08 per share (or $1.00 per share on a fully diluted basis), for the full year 2021, compared with $2.0 billion, or $1.61 per share, during the same period in 2020. For the fourth-quarter, non-GAAP core earnings were $596 million, or $0.28 per share, compared with $441 million, or $0.21 per share, during the same period in 2020.

The increase in quarter-over-quarter non-GAAP core earnings per share was primarily driven by regulatory items, timing of taxes, cost reduction, and timing of nuclear refueling outages, partially offset by growth in rate base earnings and unrecoverable interest expense.

PG&E Corporation uses “non-GAAP core earnings,” which is a non-GAAP financial measure, 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 non-core items. See the accompanying tables for a reconciliation of non-GAAP core earnings to consolidated earnings (loss) attributable to common shareholders.

2022 Guidance

PG&E Corporation is initiating 2022 GAAP earnings guidance in the range of $0.89 to $1.23 per share, which includes non-core items. PG&E Corporation is initiating 2022 non-core items guidance in the range of $(210) million to $380 million after tax, reflecting costs related to the amortization of Wildfire Fund contributions under AB1054, PG&E Corporation’s and Utility’s reorganization cases under Chapter 11, investigation remedies, and 2019-2020 wildfire-related costs, partially offset by rate neutral securitization and Fire Victim Trust tax benefit and prior period net regulatory recoveries.

On a non-GAAP basis, the guidance range for projected 2022 core earnings is initiated at $1.07 to $1.13 per share. Factors driving non-GAAP core earnings include unrecoverable interest expense of $330 million to $370 million after tax and other earnings factors, including AFUDC equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs.

Guidance is based on various assumptions and forecasts, including those relating to authorized revenues, future expenses, capital expenditures, rate base, equity issuances, rate neutral securitization, and certain other factors.

Preferred Stock Dividend Information

On February 8, 2022, the Utility declared payment of all cumulative and unpaid dividends on the Utility’s preferred stock as of January 31, 2022 totaling $59.1 million payable on May 13, 2022 to holders of record on April 29, 2022 and declared a dividend on the Utility’s preferred stock totaling $3.5 million that will be accrued during the three-month period ending April 30, 2022 payable on May 15, 2022 to holders of record on April 29, 2022.

The Utility will pay dividends on its eight series of preferred stock as follows:

To be eligible for the preferred dividend payment, a shareholder must have purchased the stock at least one trading day before the applicable record date.

Supplemental Financial Information

In addition to the financial information accompanying this release, presentation slides 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.

Earnings Conference Call

PG&E Corporation will also hold a conference call on February 10, 2022, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its fourth quarter 2021 results. The public can access the conference call through a simultaneous webcast. The link is provided below and will also be available from the PG&E Corporation website.

What: Fourth Quarter 2021 Earnings Call

When: Thursday, February 10, 2022 at 11:00 a.m. Eastern Time

Where: http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx

A replay of the conference call will be archived through February 17, 2022 at http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx.

Alternatively, a toll-free replay of the conference call may be accessed shortly after the live call through February 17, 2022, by dialing (800) 585-8367. International callers may dial (416) 621-4642. For both domestic and international callers, the confirmation code 6580027 will be required to access the replay.

Public Dissemination of Certain Information

PG&E Corporation and the Utility routinely provide links to the Utility’s principal 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. PG&E Corporation and the Utility also routinely post, or provide direct links to, presentations, documents, and other information that may be of interest to investors at http://investor.pgecorp.com, under the “Chapter 11,” “Wildfire and Safety Updates” and “News & Events: Events & Presentations” tabs, respectively, in order to publicly disseminate such information. It is possible that any of these filings or information included therein could be deemed to be material information.

About PG&E Corporation

PG&E Corporation (NYSE: PCG) is a 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.

Forward-Looking Statements

This news release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and the Utility, including but not limited to earnings guidance for 2022. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in PG&E Corporation and the Utility’s joint annual report on Form 10-K for the year ended December 31, 2021 and other reports filed with the SEC, which are available on PG&E Corporation's website at www.pgecorp.com and on the SEC website at www.sec.gov. PG&E Corporation and PG&E undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.

PG&E Corporation discloses historical financial results and provides guidance based on “non-GAAP core earnings” and “non-GAAP core EPS” 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 non-core items.

“Non-GAAP core earnings” is a non-GAAP financial measure and is calculated as income available for common shareholders less 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 Exhibit A. “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 (taken on a basic basis in the event of a GAAP loss and a diluted basis in the event of a GAAP gain). 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. With respect to our projection of non-GAAP core EPS for the years 2023-2026, we are not providing a reconciliation to the corresponding GAAP measures because we are unable to predict with reasonable certainty the reconciling items that may affect GAAP net income without unreasonable effort. The reconciling items are primarily due to the future impact of wildfire-related costs, timing of regulatory recoveries, special tax items, and investigation remedies. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures.

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.

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