PG&E Corp

The following discussion presents PG&E Corporation’s and the Utility’s operating results for the three months ended March 31, 2025 and 2024. See “Key Factors Affecting Financial Results” above for further discussion about factors that could affect future results of operations.

The consolidated results of operations consist primarily of results related to the Utility, which are discussed in the “Utility” section below. The following table provides a summary of income (loss) attributable to common shareholders for the three months ended March 31, 2025 and 2024:

PG&E Corporation’s net loss primarily consists of interest expense on long-term debt.

Utility

The table below shows certain items from the Utility’s Condensed Consolidated Statements of Income for the three months ended March 31, 2025 and 2024. In general, expenses the Utility is authorized to pass through directly to customers (such as costs to purchase electricity and natural gas, as well as costs to fund public purpose programs) and the corresponding amount of revenues collected to recover those pass-through costs do not impact net income.

Operating Revenues

The Utility’s electric and natural gas operating revenues increased by $122 million, or 2%, in the three months ended March 31, 2025, compared to the same period in 2024. This increase was primarily due to:

•approximately $190 million in interim rate relief authorized in the 2023 WMCE proceeding (see “2023 Wildfire Mitigation and Catastrophic Events Application” below) in the three months ended March 31, 2025, with no comparable revenues in the same period in 2024;

•an increase in revenues to recover the cost of electricity procurement (which increased by approximately $78 million) in the three months ended March 31, 2025, as compared to costs in the same period in 2024. These costs are passed through to customers and do not impact net income;

•approximately $80 million in revenues to recover costs associated with extended operations at DCPP in the three months ended March 31, 2025, as compared to the same period in 2024;

•approximately $45 million in interim rate relief authorized in the WGSC proceeding (see “Wildfire and Gas Safety Costs Recovery Application” below) in the three months ended March 31, 2025, with no comparable revenues in the same period in 2024; and

•approximately $30 million in revenues authorized in the General Office Sale Memorandum Account (“GOSMA”) petition for modification final decision in the three months ended March 31, 2025 with no comparable revenues in the same period in 2024.

•approximately $275 million in interim rate relief authorized in the 2022 WMCE proceeding (see “2022 WMCE Application” below) in the three months ended March 31, 2024 with no comparable revenues in the same period in 2025;

•approximately $40 million in lower revenues related to winter storm response in the three months ended March 31, 2025, as compared to the same period in 2024; and

•a decrease in revenues to recover the cost of natural gas (which decreased by approximately $33 million) in the three months ended March 31, 2025, as compared to costs in the same period in 2024. These costs are passed through to customers and do not impact net income.

Cost of Electricity

The Utility’s Cost of electricity includes the cost of power purchased from third parties (including renewable energy resources), fuel and associated transmission costs used in its own generation facilities, fuel and associated transmission costs supplied to other facilities under power purchase agreements, costs to comply with California’s cap-and-trade program, and realized gains and losses on price risk management activities. See Note 8 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1. Cost of electricity also includes net energy sales (Utility owned and third parties’ generation) in the CAISO electricity markets and directly with third parties. The Cost of electricity increased by $78 million, or 24% in the three months ended March 31, 2025, compared to the same period in 2024. This increase was primarily the result of lower CAISO market sales revenues.

Cost of Natural Gas

The Utility’s Cost of natural gas includes the costs of procurement, storage and transportation of natural gas, costs to comply with California’s cap-and-trade program and realized gains and losses on price risk management activities. See Note 8 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1. The Cost of natural gas decreased by $33 million, or 6%, in the three months ended March 31, 2025, compared to the same period in 2024. This decrease was primarily the result of a reduction in GHG emissions expenses and favorable price risk management results, partially offset by increases in natural gas prices and volumes purchased for the period.

Operating and Maintenance

The Utility’s Operating and maintenance expenses increased by $7 million, or 0%, in the three months ended March 31, 2025, compared to the same period in 2024. This increase was primarily due to:

•approximately $190 million in interim rate relief authorized in the 2023 WMCE application (see “2023 WMCE Application” below) in the three months ended March 31, 2025, with no comparable costs in the same period in 2024;

•approximately $70 million in costs associated with extended operations at DCPP in the three months ended March 31, 2025, as compared to the same period in 2024;

•approximately $45 million in interim rate relief authorized in the WGSC proceeding (see “Wildfire and Gas Safety Costs Recovery Application” below) in the three months ended March 31, 2025, with no comparable costs in the same period in 2024; and

•approximately $30 million in costs authorized in the GOSMA petition for modification final decision in the three months ended March 31, 2025 with no comparable costs in the same period in 2024.

•the recognition of approximately $275 million of previously deferred expenses authorized in the 2022 WMCE proceeding (see “2022 WMCE Application” below) in the three months ended March 31, 2024 with no comparable costs in the same period in 2025; and

•approximately $40 million in lower costs related to winter storm response in the three months ended March 31, 2025, as compared to the same period in 2024.

Wildfire-Related Claims, Net of Recoveries

The Utility’s Wildfire-related claims, net of recoveries increased by $50 million, or more than 100%, in the three months ended March 31, 2025, compared to the same period in 2024. The Utility recognized pre-tax charges of $50 million related to the 2019 Kincade fire in the three months ended March 31, 2025, with no comparable costs in the same period in 2024.

Wildfire Fund Expense

There was no material change to Wildfire Fund expense for the periods presented.

Depreciation, Amortization, and Decommissioning

The Utility's Depreciation, amortization and decommissioning expenses increased by $75 million, or 7%, in the three months ended March 31, 2025, compared to the same period in 2024. This increase was primarily due to the growth in plant balance from capital additions.

Interest Income

The Utility’s Interest income decreased by $20 million, or 15%, in the three months ended March 31, 2025, compared to the same period in 2024. This decrease was primarily due to a decrease in interest rates and interest-bearing account balances in the three months ended March 31, 2025 compared to the same period in 2024.

Interest Expense

There was no material change to Interest expense for the periods presented.

Other Income, Net

There was no material change to Other income, net for the periods presented.

Income Tax Provision

There was no material change to Income tax provision for the periods presented. The effective tax rates were 8.3% and 7.0 % for the three months ended March 31, 2025 and 2024, respectively. The Utility’s effective tax rate is below the federal statutory rate of 21% for 2025 and 2024 primarily due to the effect of federal flow-through ratemaking treatment for certain property-related costs. For these temporary tax differences, the Utility recognizes the deferred tax impact in the current period and records offsetting regulatory assets and liabilities. Therefore, the Utility’s effective tax rate is impacted as these differences arise and reverse. The Utility recognizes such differences as regulatory assets or liabilities as it is probable that these amounts will be recovered from or returned to customers in future rates. These amounts also reflect the impact of the amortization of excess deferred tax benefits to be refunded to customers as a result of the Tax Cuts and Jobs Act of 2017.

Import Tariffs

PG&E Corporation and the Utility are assessing the impacts of changes to import tariffs, which could increase the costs they pay for goods and services, and their ability to mitigate such cost increases, including through operational, contractual, or regulatory initiatives.