July 28, 2016
ISSUED BY:   PG&E Corporation, 1-415-973-5930


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SAN FRANCISCO, Calif.—PG&E Corporation's (NYSE: PCG) second-quarter 2016 net income after dividends on preferred stock (also called "income available for common shareholders") was $206 million, or $0.41 per share, as reported in accordance with generally accepted accounting principles (GAAP). GAAP earnings for the same period in 2015 were $402 million, or $0.83 per share.

GAAP results include items that management does not consider part of normal, ongoing operations (items impacting comparability), totaling $192 million pre-tax, or $0.25 per share, in the second quarter of 2016. This includes a charge of $190 million pre-tax for pipeline-related capital expenditures that PG&E Corporation believes are probable of disallowance as a result of the phase one decision in the 2015 Gas Transmission and Storage (GT&S) Rate Case. Items impacting comparability also include $148 million pre-tax for safety-related capital expenditures disallowed as part of the San Bruno penalty, $49 million pre-tax for Utility expenses related to the Butte fire, $27 million pre-tax for work to clear pipeline rights-of-way, $24 million pre-tax for the gas distribution record-keeping fine, and $14 million pre-tax for legal and regulatory costs related to natural gas matters and regulatory communications. These costs were partially offset by $260 million pre-tax accrued as probable insurance recoveries in connection with the Butte fire.

"Our focus on operational excellence drove solid results in the second quarter. The progress we continue to make reaffirms our confidence in PG&E's future and our ability to execute on the significant investments planned for the coming years as we work to provide safe, reliable, affordable energy for our customers and to support California's clean energy goals," said PG&E Corporation Chairman and CEO Tony Earley.

Earnings from Operations

On a non-GAAP basis, excluding items impacting comparability, PG&E Corporation's earnings from operations for the second quarter of 2016 were $330 million, or $0.66 per share, compared with $442 million, or $0.91 per share, during the same period in 2015. The difference in quarter-over-quarter earnings from operations reflected some timing-related tax expenses and the impact of the second-quarter 2016 refueling outage at Diablo Canyon Power Plant, among other items. These were partially offset by higher rate base earnings.

2016 Earnings Guidance

PG&E Corporation is adjusting the previously issued guidance range for projected GAAP earnings to $2.83 to $3.15 per share to reflect the timing impacts of Gas Transmission and Storage revenues, estimates for probable capital disallowance in the 2015 GT&S rate case, and estimates of Butte fire costs net of insurance. The GAAP range also includes forecasts for expected pipeline-related costs related to transmission rights-of-way, legal and regulatory expenses related to natural gas matters and regulatory communications, and fines and penalties. PG&E Corporation is maintaining its previously issued 2016 guidance for non-GAAP earnings from operations in the range of $3.65 to $3.85 per share.  Guidance is based on various assumptions and forecasts, including those relating to expenses, authorized revenues, capital expenditures, rate base, and equity issuances.

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 for the second quarter 2016 and the 2016 guidance, respectively.

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 and are available on PG&E Corporation's website at:

Conference Call with the Financial Community to Discuss Financial Results

Today's call at 11:00 a.m., Eastern Time, is open to the public on a listen-only basis via webcast. Please visit 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 11, 2016, by dialing (866) 415-9493. International callers may dial (205) 289-3247. For both domestic and international callers, the confirmation code 1702# 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, California's largest investor-owned utility. PG&E serves 16 million Californians across a 70,000 square-mile service area in Northern and Central California. For more information, visit

Forward-Looking Statements

Management's statements providing guidance for PG&E Corporation's 2016 financial results and the assumptions and forecasts underlying such guidance constitute forward-looking statements that reflect management's judgments and opinions. These statements and assumptions 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 final CPUC decision in phase two of the 2015 GT&S rate case, the 2017 GRC, the TO rate cases, and other ratemaking and regulatory proceedings;
  • the timing and amount of fines, penalties, and remedial costs that the Utility may incur in connection with the federal criminal prosecution of the Utility, the CPUC decision in the Utility's natural gas distribution record-keeping practices investigation, the SED's 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 relating to the Utility's compliance with natural gas-related laws and regulations;
  • the timing and outcomes of (i) the CPUC's investigation of communications between the Utility and the CPUC that may have violated the CPUC's rules regarding ex parte communications or are otherwise alleged to be improper, and (ii) the U.S. Attorney's Office in San Francisco and the California Attorney General's office investigations in connection with communications between the Utility's personnel and CPUC officials, and whether such matters negatively affect the final decisions to be issued in phase two of the 2015 GT&S rate case or other ratemaking proceedings;
  • the outcome of the Butte fire litigation, and whether the Utility's insurance is sufficient to cover the Utility's liability resulting therefrom and otherwise available; and whether additional investigations and proceedings will be opened;
  • 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;
  • changes in cost forecasts or the scope and timing of planned work resulting from changes in customer demand for electricity and natural gas or other reasons;
  • the impact that reductions in customer demand for electricity and natural gas have on the Utility's ability to make investments and recover its costs through rates and earn its authorized return on equity, and whether the Utility's is successful in addressing the impact of growing distributed and renewable generation resources and changing customer demand for natural gas and electric services;
  • the amount and timing of charges reflecting probable liabilities for third-party claims and the extent to which costs incurred in connection with third-party claims or litigation can be recovered through insurance, rates, or from other third parties;
  • 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;
  • changes in estimated environmental remediation costs, including costs associated with the Utility's natural gas compressor sites;
  • 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;
  • 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, 2015 and Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2016.