PG&E Corporation (PCG) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 27, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen thank you for standing by. My name is Brent and I will be your conference operator today. At this time, I would like to welcome everyone to the PG&E Corporation Second Quarter 2023 Earnings Release Call. [Operator Instructions] It is now my pleasure to turn today's call over to Mr. Jonathan Arnold Vice President of Investor Relations. Please go ahead.

Jonathan Arnold

Good morning everyone and thank you for joining us for PG&E's Second Quarter 2023 Earnings Call. With us today are Patti Poppe, Chief Executive Officer; and Carolyn Burke, Executive Vice President and Chief Financial Officer. We also have other members of the leadership team here with us in our Oakland headquarters.

First, I should remind you that today's discussion will include forward-looking statements about our outlook for future financial results. These statements are based on information currently available to management. Some of the important factors which could affect our actual financial results are described on the second page of today's second quarter earnings call presentation. Presentation also includes a reconciliation between non-GAAP and GAAP financial measures. The slides along with other relevant information can be found online at investor.pgecorp.com. We would also encourage you to review our quarterly report on Form 10-Q for the quarter ended June 30 2023.

With that it's my pleasure to hand the call over to our CEO Patti Poppe.

Patti Poppe

Thank you, Jonathan. And good morning, everyone. Thanks for joining us on what we know is a very busy earnings morning. We continue to make progress here at PG&E and this quarter is no different. Our core earnings per share of $0.23 for the second quarter bring us to $0.52 for the first half of 2023. While our first half earnings are down $0.03 versus 2022 we have not yet recognized the benefit of our general rate case.

As a reminder we have a memo account in place which will allow us to book catch-up revenues from the January 1 2023 effective date once we receive a final CPUC decision. We still expect a final decision in the third quarter and we were encouraged that the CPUC affirmed this timing earlier this month.

As we shared at our Investor Day in May 86% of our incremental revenue request is for core safety reliability and maintenance work. All areas where there is strong alignment with state policy goals and stakeholder priorities. While the GRC decision will be an important driver halfway through the year we remain on track to plan and laser-focused on delivering our annual guidance which we are reaffirming today. We are also reaffirming earnings growth rates of at least 10% in 2024 and at least 9% in 2025 and 2026 along with our commitment to no new equity issuance through 2024.