PACIFIC GAS & ELECTRIC Co

The following discussion presents PG&E Corporation’s and the Utility’s operating results for the three months ended March 31, 2026 and 2025. See “Key Factors Affecting Financial Results” above for further discussion about factors that could affect future results of operations.

PG&E Corporation

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, 2026 and 2025:

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, 2026 and 2025. 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 $898 million, or 15%, in the three months ended March 31, 2026, compared to the same period in 2025. This increase was primarily due to:

•approximately $620 million in revenues authorized in the 2023 WMCE final decision (see “2023 WMCE Application” below) in the three months ended March 31, 2026, with no comparable revenues in the same period in 2025. The revenues recognized are incremental to revenues previously recognized for interim rate relief;

•approximately $162 million more in revenues to recover the cost of electricity in the three months ended March 31, 2026, compared to the same period in 2025. These costs are passed through to customers and do not impact net income; and

•approximately $90 million more in revenues to recover costs associated with extended operations at DCPP in the three months ended March 31, 2026, compared to the same period in 2025.

This increase was partially offset by:

•approximately $70 million less in interim rate relief authorized in the 2023 WMCE proceeding (see “2023 WMCE Application” below) in the three months ended March 31, 2026, compared to the same period in 2025.

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 from third parties.

The Cost of electricity increased by $162 million, or 41%, in the three months ended March 31, 2026, compared to the same period in 2025. This increase was primarily the result of lower CAISO market sales revenues, lower renewable energy credit sales, and higher CAISO transmission costs, partially offset by decreases in natural gas prices and volumes used in Utility owned generation.

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 $26 million, or 5%, in the three months ended March 31, 2026, compared to the same period in 2025. This decrease was primarily the result of a decrease in natural gas prices and volumes.

Operating and Maintenance

The Utility’s Operating and maintenance expenses increased by $466 million, or 18%, in the three months ended March 31, 2026, compared to the same period in 2025. This increase was primarily due to:

•approximately $400 millionin costs due to recognition of previously deferred expenses authorized in the 2023 WMCE final decision (see “2023 WMCE Application” below) in the three months ended March 31, 2026, with no comparable costs in the same period in 2025. The expenses are incremental to the expenses previously recognized in the 2023 WMCE application as part of interim rate relief; and

•approximately$70 million more in costs associated with extended operations at DCPP in thethree months ended March 31, 2026, compared to the same period in 2025.

This increase was partially offset by:

•approximately$70 million less in previously deferred expenses authorized through interim rate relief for the 2023 WMCE application (see “2023 WMCE Application” below) in thethree months ended March 31, 2026, compared to the same period in 2025.

Wildfire-Related Claims, Net of Recoveries

The Utility’s Wildfire-related claims, net of recoveries decreased by $49 million, or 100%, in the three months ended March 31, 2026, compared to the same period in 2025. The Utility recognized pre-tax charges of $50 million related to the 2019 Kincade fire in thethree months ended March 31, 2025, with no comparable costs in the same period in 2026.

Wildfire Fund Expense

The Utility’s Wildfire Fund expense increased by $26 million, or 34%, in the three months ended March 31, 2026, compared to the same period in 2025. This increase was due to accelerated amortization associated with SCE’s disclosure of a receivable from the Wildfire Fund related to the Eaton Fire.

Depreciation, Amortization, and Decommissioning

The Utility's Depreciation, amortization, and decommissioning expenses increased by $69 million, or 6%, in the three months ended March 31, 2026, compared to the same period in 2025. This increase was primarily due to the growth in plant balance from capital additions and the recognition of previously deferred depreciation expense authorized in the 2023 WMCE final decision.

Interest Expense

The Utility’s Interest expense increased by $62 million, or 9%, in the three months ended March 31, 2026, compared to the same period in 2025. This increase was primarily due to the issuance of additional long-term debt.

Other Income, Net

The Utility’s Other Income, Net increased by $47 million, or 66%, in the three months ended March 31, 2026, compared to the same period in 2025. This increase was primarily due to a higher return from the trust assets for the qualified pension in the three months ended March 31, 2026, compared to the same period in 2025.

Income Tax Provision

The Utility’s Income tax provision decreased by $22 million, or 35%, in the three months ended March 31, 2026, compared to the same period in 2025, primarily due to increased tax repairs deductions and deductions for certain costs attributable to electric generation.

The effective tax rates were 4.1% and 8.3% for the three months ended March 31, 2026 and 2025, respectively. The change in effective tax rate is primarily due to increased deductions for certain costs attributable to electric generation. The Utility’s effective tax rate is below the federal statutory rate of 21% for 2026 and 2025 primarily due to the effect of the increase in 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.