February 16, 2017
ISSUED BY:   PG&E Corporation, 1-415-973-5930


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Press Release and Selected Exhibits
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SAN FRANCISCO, Calif. — PG&E Corporation's (NYSE: PCG) full-year 2016 net income after dividends on preferred stock (also called "income available for common shareholders") was $1,393 million or $2.78 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with $874 million, or $1.79 per share, for the full year 2015. For the fourth quarter of 2016, GAAP results were $692 million, or $1.36 per share, compared with $134 million, or $0.27 per share, for the same quarter in 2015.

GAAP results include items that management does not consider part of normal, ongoing operations (items impacting comparability), which totaled $809 million pre-tax, or $0.98 per share, for the year. These items primarily included capital and expense disallowances ordered by the California Public Utilities Commission (CPUC) in Pacific Gas and Electric Company's (Utility) 2015 Gas Transmission and Storage (GT&S) rate case, expenses related to the Butte fire, costs for work to clear pipeline rights-of-way, legal and regulatory costs related to natural gas matters and regulatory communications, and fines associated with the CPUC's gas distribution record-keeping investigation and the Utility's conviction in the federal criminal trial. These items were partially offset by the additional authorized revenue recorded as a result of the final phase two decision in the 2015 GT&S rate case, and probable insurance recoveries associated with Butte fire costs. For the fourth quarter alone, the additional GT&S revenues fully offset other items and increased GAAP earnings by $29 million, or $0.03 per share.

"Our focus on safety, reliability and California's clean energy goals continues to drive major investments in our operations and infrastructure that are vital to meeting the needs of our customers in 2017 and beyond," said PG&E Corporation Chairman and CEO Tony Earley.

Among the company's highlights from the fourth quarter of 2016, PG&E:

  • Secured California Public Utilities Commission approval to build the infrastructure to support 7,500 level 2 electric-vehicle charging stations across Northern and Central California.
  • Delivered nearly 33 percent of our electricity from qualified renewable resources, four years ahead of California's goal.
  • Completed a successful technology demonstration project to explore the performance of battery storage systems participating in California's electricity markets.
  • Announced the second phase of the BMW ChargeForward program to test the ability of electric vehicles to support the electric grid and integrate renewable energy through smart charging.
Earnings from Operations

On a non-GAAP basis, excluding items impacting comparability, PG&E Corporation's earnings from operations in 2016 were $1,884 million, or $3.76 per share, compared with $1,519 million, or $3.12 per share, in 2015. For the fourth quarter of 2016, earnings from operations were $675 million, or $1.33 per share, compared with $247 million, or $0.50 per share, during the same period in 2015.

The increase in quarter-over-quarter earnings from operations reflected additional authorized revenue as a result of the 2015 GT&S rate case, timing-related tax items, the impact of a nuclear refueling outage in the prior period, and growth in rate base earnings.

Earnings Guidance

PG&E Corporation is adjusting 2017 guidance for projected GAAP earnings in the range of $3.48 to $3.77 per share, which includes forecasts for the revenue adjustment authorized in the 2015 GT&S rate case, pipeline-related costs, legal and regulatory expenses, penalties imposed by the CPUC, as well as other items. On a non-GAAP basis, the guidance range for projected 2017 earnings from operations is $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:

Conference Call with the Financial Community to Discuss Financial Results

Today's call at 12:00 pm, 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 March 2, 2017, by dialing (866) 415-9493. International callers may dial (205) 289-3247. For both domestic and international callers, the confirmation code 3237# 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

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 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 2017 GRC, the TO rate case, the cost of capital proceeding, and other ratemaking and regulatory proceedings;
  • the amount and timing of costs related to Butte fire litigation, the extent to which such costs can be recovered through insurance, and whether additional investigations and proceedings in connection with Butte fire will be opened;
  • 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, or a potential settlement in connection with this proceeding, 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;
  • the terms of probation and the monitorship imposed in the sentencing phase of the Utility's federal criminal trial, 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 relating to the Utility's compliance with natural gas-related laws and regulations, and the ultimate amount of fines, penalties, and remedial and other costs and remedial measures that the Utility may incur as a result;
  • the outcomes of the SED's investigations of potential violations identified through audits, investigations, or self-reports;
  • 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 and recover its investments through rates and earn its authorized return on equity, and whether the Utility is successful in addressing 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;
  • 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;
  • 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, 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.