February 09, 2018
ISSUED BY:   PG&E Corporation, 1-415-973-5930

PG&E Corporation Reports Full-Year and Fourth-Quarter 2017 Financial Results

Related Documents
Press Release and Selected Exhibits
Presentation and Complete Earnings Exhibits

SAN FRANCISCO, Calif. — PG&E Corporation's (NYSE: PCG) full-year 2017 net income after dividends on preferred stock (also called "income available for common shareholders") was $1,646 million or $3.21 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with $1,393 million, or $2.78 per share, for the full year 2016. For the fourth quarter of 2017, GAAP results were $114 million, or $0.22 per share, compared with $692 million, or $1.36 per share, for the same quarter in 2016.

GAAP results include items that management does not consider part of normal, ongoing operations (items impacting comparability), which totaled $243 million after-tax, or $0.47 per share, for the year. These included charges related to the transition impact of the Tax Cuts and Jobs Act of 2017, costs to clear pipeline rights-of-way, fines and penalties related to the San Bruno penalty decision and certain ex parte communications, costs related to the Northern California wildfires and the Butte fire, costs related to the Diablo Canyon settlement, and legal and regulatory costs related to natural gas matters and regulatory communications. These charges were partially offset by revenue recorded in excess of the 2017 authorized revenue requirement from the 2015 Gas Transmission and Storage (GT&S) rate case, and the net benefit of proceeds from insurance related to the court-approved settlement of the shareholder derivative litigation.

"Our financial performance in 2017 reflected PG&E's focus on safely and reliably providing clean and affordable service, and making critical investments in a sustainable energy future for our customers. These priorities will continue to drive our actions in 2018, including efforts to work with policy makers and others to develop comprehensive solutions to the significant challenges resulting from the devastating Northern California Wildfires," said PG&E Corporation CEO and President Geisha Williams.

Operating highlights from the fourth quarter included a number of actions to assist communities impacted by the Northern California wildfires. These ranged from standing up a dedicated team to streamline service planning to providing no-cost installation of temporary electric service and offering deposit relief and other special billing accommodations. Other highlights from the quarter included the following:

  • PG&E unveiled the Oakland Clean Energy Initiative, a proposed first-of-its-kind plan to use energy storage, energy efficiency and system upgrades as an innovative alternative to replace a decades-old fossil-fuel plant needed for local reliability.
  • PG&E asked the California Public Utilities Commission (CPUC) to allow the company to enter into six new large-scale battery storage contracts representing 165 megawatts of capacity.
  • Newsweek recognized PG&E as the nation's greenest energy provider and the No. 4 greenest company overall in its annual Green Rankings.

Earnings from Operations

On a non-GAAP basis, excluding items impacting comparability (IIC), PG&E Corporation's earnings from operations in 2017 were $1,889 million, or $3.68 per share, compared with $1,884 million, or $3.76 per share, in 2016. For the fourth quarter of 2017, earnings from operations were $327 million, or $0.63 per share, compared with $675 million, or $1.33 per share, during the same period in 2016.

The decrease in quarter-over-quarter earnings from operations was primarily driven by the timing of the 2015 GT&S rate case, which delayed recognition of the full 2016 revenue increase until the fourth quarter of 2016. Other drivers included the timing of taxes related to the percentage of quarterly earnings to annual earnings, the impact of the 2017 General Rate Case decision, and the timing of operational spend and other miscellaneous items. These were partially offset by growth in rate base earnings during the fourth quarter of 2017.

PG&E Corporation discloses historical financial results based on "earnings from operations," 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 items impacting comparability. See the accompanying tables for a reconciliation of earnings from operations to consolidated income available for common shareholders.

IIC Guidance

PG&E Corporation is not providing at this time guidance for 2018 GAAP earnings and non-GAAP earnings from operations due to the uncertainty related to the October 2017 Northern California wildfires. The company is providing 2018 IIC guidance of $72 million to $122 million after-tax for known costs to clear pipeline rights-of-way, legal costs related to the Butte fire, and legal and other costs related to the Northern California wildfires, net of insurance.

IIC guidance is based on various assumptions and forecasts related to future expenses and certain other factors.

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:

Public Dissemination of Certain Information

PG&E Corporation and Pacific Gas and Electric Company (Utility) routinely provide links to the Utility's principal regulatory proceedings with the CPUC and the Federal Energy Regulatory Commission (FERC) at, under the "Regulatory Filings" tab, so that such filings are available to investors upon filing with the relevant agency. It is possible that these regulatory filings or information included therein could be deemed to be material information. 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 under the "News & Events: Events & Presentations" tab, in order to publicly disseminate such information.

Conference Call with the Financial Community to Discuss Financial Results

Today's call at 11:00 am, 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 February 23, 2018, by dialing (866) 415-9493. International callers may dial (205) 289-3247. For both domestic and international callers, the confirmation code 3265# 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 In this press release, they are together referred to as "PG&E."

Forward-Looking Statements

Management's statements providing 2018 IIC guidance as well as statements regarding management's expectations and objectives for future years, constitute forward-looking statements that reflect management's judgments and opinions. These statements are based on assumptions and forecasts that 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 impact of the Northern California wildfires, including the costs of restoration of service to customers and repairs to the Utility's facilities, and whether the Utility is able to recover such costs through CEMA; the timing and outcome of the related wildfire investigations; whether the Utility may have liability associated with these fires; if liable for one or more fires, whether the Utility would be able to recover all or part of such costs through insurance or through regulatory mechanisms, to the extent insurance is not available or exhausted; and potential liabilities in connection with fines or penalties that could be imposed on the Utility if the CPUC or any other law enforcement agency brought an enforcement action and determined that the Utility failed to comply with applicable laws and regulations;
  • the impact of the Tax Cuts and Jobs Act of 2017, and the timing and outcome of the CPUC decision related to the Utility's future filings in connection with the impact of the Tax Cuts and Jobs Act of 2017 on the Utility's rate cases and its implementation plan;
  • the Utility's ability to efficiently manage capital expenditures and its operating and maintenance expenses within the authorized levels of spending and timely recover its costs through rates, and the extent to which the Utility incurs unrecoverable costs that are higher than the forecasts of such costs;
  • the timing and outcomes of the TO18 and TO19 rate cases and other ratemaking and regulatory proceedings;
  • the timing and outcomes of the ex parte OII and the safety culture OII;
  • the timing and outcome of the Butte fire litigation; the timing and outcome of any proceeding to recover costs in excess of insurance from customers, if any; the effect, if any, that the SED's $8.3 million citations issued in connection with the Butte fire may have on the Butte fire litigation; and whether additional investigations and proceedings in connection with the Butte fire will be opened and any additional fines or penalties imposed on the Utility;
  • whether the CPUC approves the Utility's application to establish a WEMA to track wildfire expenses and to preserve the opportunity for the Utility to request recovery of wildfire costs in excess of insurance at a future date, and the outcome of any potential request to recover such costs;
  • whether the Utility can continue to obtain insurance and whether insurance coverage is adequate for future losses or claims;
  • the outcome of the probation and the monitorship, 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, and the ultimate amount of fines, penalties, and remedial and other costs that the Utility may incur as a result;
  • 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 credit ratings which could, among other things, result in higher borrowing costs and fewer financing options, especially if PG&E Corporation or the Utility were to lose their investment grade credit ratings; 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, 2017 and other reports filed with the SEC, which are available on PG&E Corporation's website at and on the SEC website at