PG&E Corporation (PCG): Business Model Canvas [Dec-2025 Updated]

You're looking to map out the business engine of PG&E Corporation, and honestly, it's a study in regulated infrastructure under extreme pressure. Forget simple power sales; this model hinges on executing a $\mathbf{\$12.9}$ billion capital expenditure plan in 2025, primarily to harden the grid against wildfire risk, all while seeking approval from the California Public Utilities Commission to earn a return on a rate base projected near $\mathbf{\$69}$ billion. It's a balancing act where enhanced safety and state mandates meet the reality of significant costs, including up to $\mathbf{\$400}$ million in unrecoverable interest expense this year. To see exactly how they manage this high-stakes utility operation-from securing capital to delivering 98% greenhouse gas-free electricity-dive into the full canvas below.

PG&E Corporation (PCG) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships PG&E Corporation relies on to execute its massive infrastructure and safety plans. These aren't just vendor agreements; they are mandated relationships and strategic alliances that unlock capital and technology for grid resilience.

California Public Utilities Commission (CPUC) for Rate Case Approvals

The CPUC is the gatekeeper for cost recovery, which directly funds the Key Activities and Resources. Without their sign-off, the multi-billion dollar capital plans stall. The regulatory framework dictates the pace of investment and the ultimate impact on customer bills.

PG&E Corporation submitted its 2027-2030 General Rate Case (GRC) filing to the CPUC on May 15, 2025. This proposal is designed to fund the next phase of grid modernization and wildfire safety improvements. The prior 2023-2026 GRC, approved by the CPUC, authorized placing 1,230 miles of powerlines underground in the highest fire-risk areas. For a typical residential non-CARE customer, that prior GRC resulted in a monthly bill increase of approximately $4.50 in 2025. The 2027-2030 filing aims for total residential combined gas and electric bills in 2027 to be flat compared to 2025 bills, if approved. Also, PG&E is conducting solicitations for Renewable Portfolio Standard (RPS) energy in compliance with CPUC Decision (D) 24-12-035.

Technology Innovators for AI and Grid Tech

To manage the grid overhaul, which includes a $73 billion capital expenditure program through 2030, PG&E Corporation actively partners with technology providers to scale solutions quickly. This investment is heavily focused on hardening the system against wildfires and meeting new demand from the artificial intelligence sector.

The company uses events like the 2025 Pitch Fest to source these partners. Here's a look at that specific innovation funnel for late 2025:

These innovators present solutions across categories like Wildfire & Forest Management, EV & DER Management, and Undergrounding.

Independent Power Producers (IPPs) for Renewable Energy Procurement

Securing power from Independent Power Producers is critical for meeting California's clean energy mandates, which are overseen by the CPUC. PG&E Corporation has a strong track record in this area.

The utility is executing on its clean energy goals through active procurement:

• In 2024, 98% of the electricity delivered to customers who purchase power directly was greenhouse-gas free.
• The CPUC compliance requirement for RPS was 60 percent as of 2023.
• PG&E is currently conducting a solicitation to sell Portfolio Content Category 1 (PCC 1) bundled RPS energy and Renewable Energy Credits (RECs) generated in 2025 and 2026.

This procurement strategy supports the overall goal of limiting annual growth in customer costs to 2-4%.

Energy Vault for Ultra-Long Duration Storage Microgrid Projects

The partnership with Energy Vault delivers tangible, resilient assets designed to keep power on during Public Safety Power Shutoffs (PSPS) driven by wildfire threats. This is a key component of PG&E Corporation's multi-day, long-duration energy storage requirements.

The Calistoga Resiliency Center (CRC) is a prime example of this collaboration:

The CRC is a hybrid microgrid integrating lithium-ion batteries with advanced hydrogen fuel cells. Energy Vault owns and operates the microgrid under a long-term energy services agreement with PG&E Corporation. The project was facilitated by securing $28 million in financing.

This system enables 'black-start' operation, meaning it can restart the grid from a standing start during a blackout.

Local and Federal Agencies for Wildfire Mitigation and Emergency Response

Wildfire mitigation is a core driver of PG&E Corporation's capital spending, often requiring coordination with state and local entities for funding and execution of risk reduction measures. The company deployed 1,000 miles of underground power lines in the highest fire-risk areas as part of its ongoing efforts.

Financial commitments related to state-level wildfire risk sharing include:

• The California legislature expanded the state's wildfire fund by $18 billion.
• PG&E's contribution to this fund is set to be $144 million annually, starting in 2029.

The utility forecasts an annual rate base growth of 9% from 2026 through 2030, supported by these infrastructure hardening investments. Finance: draft 13-week cash view by Friday.

PG&E Corporation (PCG) - Canvas Business Model: Key Activities

You're looking at the core engine of PG&E Corporation, the day-to-day work that keeps the lights on and the gas flowing while navigating massive safety and regulatory demands. The key activities are capital-intensive and heavily focused on risk reduction right now.

Executing the $63 billion capital investment plan through 2028

The sheer scale of the planned spending is a primary activity. PG&E Corporation has a projected capital expenditure plan totaling $63 billion covering 2024 through 2028. . This investment is designed to drive a compound annual growth rate (CAGR) of approximately +10% in the rate base through 2028. . For the current year, PG&E expects to invest $12.9 B in capital projects, an increase from $10.6 B in 2024. . Honestly, this spending is the mechanism to fund the grid modernization and wildfire mitigation efforts we'll discuss next.

Here's a quick look at how that capital is allocated across the near term:

Wildfire risk mitigation via undergrounding and system hardening

This is arguably the most critical, visible activity. PG&E is executing the largest utility undergrounding effort in history to permanently reduce ignition risk. As of October 3, 2025, the company has constructed and energized 1,000 miles of powerlines underground in high fire-risk areas. . This is a significant milestone, especially since the cost per mile for this work has dropped to just over $3.1 million per mile in 2025, down from $4 million previously. . Their system hardening efforts, which include undergrounding, stronger poles, and covered wires, have permanently removed 8.4% of wildfire ignition risk from the entire system since 2023. . They are planning for more aggressive deployment, anticipating a total of 1,600 miles underground by the end of 2026.

The overall strategy involves multiple layers of protection:

• Undergrounding powerlines in high fire-risk areas.
• Strengthening overhead lines with stronger poles and covered conductors.
• Pruning vegetation near infrastructure.
• Deploying new technologies like downed conductor detection.

For context on recent hardening progress, in 2024 alone, PG&E completed 366 miles of system hardening, which included 258 miles of underground powerlines. . The 2026-2028 Wildfire Mitigation Plan specifically targets strengthening another 570 miles of overhead powerlines and poles.

Regulated electric and natural gas transmission and distribution

The core utility function involves maintaining and operating the physical network under regulatory oversight. PG&E owns and operates one of the nation's largest natural gas systems. As of mid-2025, this system comprises over 50,000+ miles of combined transmission and distribution (T&D) pipeline. [cite: 1, search result 1]. This infrastructure serves approximately 4.5 million natural gas customer accounts. [cite: 1, search result 1]. For the electric side, the company is focused on distribution upgrades, with its 2025 Distribution Upgrade Project Report providing transparency into execution plans for the electric distribution system. [cite: 9, search result 9]

Procuring and integrating clean energy to meet state mandates

Meeting California's aggressive clean energy mandates is a continuous procurement and integration activity. PG&E retail customers received 100% greenhouse gas-free electricity in 2023. [cite: 3, search result 3]. This portfolio in 2023 was composed of 53% nuclear, 13% large hydroelectric, and 34% eligible-renewable resources like solar and wind. [cite: 3, search result 3]. To support future needs, PG&E has more than 260 Renewables Portfolio Standard-eligible power purchase agreements totaling over 6,000 megawatts. [cite: 3, search result 3]. Furthermore, the utility is actively integrating energy storage, having brought online over 2,100 megawatts of new battery storage capacity to help integrate renewables. [cite: 3, search result 3]. Looking ahead, PG&E's Integrated Resource Planning seeks Commission approval to procure up to 12 terawatt-hours (TWh) of GHG-free generation by 2030. [cite: 2, search result 2]

The utility is also actively managing significant new load growth from data centers, which supports clean energy integration by increasing utilization of existing infrastructure:

• Total data center load in PG&E's pipeline as of July 2025: about 10 GW. [cite: 6, search result 6]
• Data center load projected to come online between 2026 and 2030: 1.4 GW. [cite: 7, search result 7]
• Total battery energy storage under contract: more than 3.5 gigawatts. [cite: 3, search result 3]

Achieving a 2% annual reduction in non-fuel Operating & Maintenance (O&M) costs

Cost discipline is a required activity to offset capital spending and stabilize customer bills. PG&E Corporation has consistently delivered on its cost reduction commitment. In 2024, non-fuel O&M costs were reduced by 4% compared to 2023, exceeding the 2% target. . The company saved over $200 million in non-fuel O&M costs in each of 2022, 2023, and 2024. . Management reaffirmed that they remain on track to meet the 2% non-fuel O&M reduction target for 2025. . To be fair, over the past three years leading up to May 2025, the company implemented new processes that reduced operating and capital costs by about $2.5 billion in total. [cite: 12, search result 12]. This focus helps them project residential combined gas and electric bills to be essentially flat for the remainder of 2025.

PG&E Corporation (PCG) - Canvas Business Model: Key Resources

You're looking at the core assets that underpin PG&E Corporation's ability to operate its regulated utility business in late 2025. These aren't just line items on a balance sheet; they are the physical and financial foundations that allow the company to serve customers and manage massive infrastructure risk.

The physical plant is anchored by a significant regulated asset base (rate base), projected to be $69 billion as of 2025. This rate base is expected to grow, with projections showing it rising to $106 billion by 2030 under the recently announced capital plan. PG&E Corporation's operational footprint is vast, covering an exclusive service territory of 70,000 square miles across Northern and Central California. This territory serves approximately 16 million people.

Critical generation assets provide essential baseload power. The Diablo Canyon Power Plant (DCPP), which provides about 10% of California's electricity and nearly 20% of its clean, carbon-free energy, is now operating under an extended schedule through 2030 for both Unit 1 and Unit 2, generating enough electricity for 4 million Californians. Complementing this is PG&E Corporation's substantial hydroelectric system, one of the largest investor-owned systems in the nation, which has 67 powerhouses and produces roughly 3,900 megawatts (MW) of power.

Situational awareness is managed through a sophisticated network of monitoring tools, vital for wildfire mitigation. PG&E Corporation has deployed a state-wide network of 1,600 weather stations, with 1,400 of those stations equipped with AI and machine learning technology to enhance forecast accuracy. This is paired with a network of more than 650 high-definition wildfire cameras.

The ability to fund massive, multi-year safety and infrastructure programs relies heavily on access to capital markets. PG&E Corporation is executing on a capital deployment plan that envisions $73 billion in capital investments through 2030. The company reaffirmed its 2025 to 2028 equity issuance guidance of $3 billion. However, the need for this capital is reflected in its financial structure, as the company carries one of the highest net debt-to-EBITDA coefficients among its peers. The utility's financial planning is formalized through regulatory filings, such as the submission of its 2026 Cost of Capital applications in March 2025.

Here's a quick look at the scale of some of these key physical and technological resources:

The company also maintains extensive delivery infrastructure to support this service area, which you should keep in mind when assessing asset utilization:

• Electric Distribution Lines: 106,681 circuit miles
• Electric Transmission Lines: 18,466 circuit miles
• Natural Gas Distribution Pipelines: 42,141 miles
• Natural Gas Transmission Pipelines: 6,438 miles

Finance: draft 13-week cash view by Friday.

PG&E Corporation (PCG) - Canvas Business Model: Value Propositions

You're looking at the core promises PG&E Corporation (PCG) is making to its customers and the state of California as of late 2025. These aren't just vague goals; they are backed by massive capital commitments and measurable operational results, which is what you need to see as a financially-literate stakeholder.

Enhanced safety and grid resilience through system hardening

The primary value proposition revolves around permanently mitigating the risk of catastrophic wildfires and ensuring the lights stay on, especially with the massive load growth coming from data centers. PG&E Corporation (PCG) has committed to a staggering $73 billion capital expenditure program through 2030 to overhaul its system. This isn't just for new connections; a significant portion is dedicated to hardening the existing infrastructure against extreme weather events.

Here's a quick look at how that capital is being allocated, based on the latest five-year plan details:

To be fair, the sheer scale of the investment is necessary given the utility's history, but the execution on prior targets is encouraging; for example, in 2024, they completed 258 miles of underground powerlines in high-fire-risk areas.

Delivery of 98% greenhouse gas-free electricity to customers

PG&E Corporation (PCG) is delivering one of the cleanest power mixes in the nation. For the 2024 reporting period, the utility supplied 98% greenhouse gas-free electricity to the customers to whom it directly sells power. This is a concrete metric supporting California's broader clean energy mandates.

The composition of that clean energy portfolio in 2024 was:

• Eligible renewable resources (wind, solar, geothermal, biomass, small hydro): 23%
• Non-emitting nuclear generation: 63%
• Large hydroelectric facilities: 12%

Fossil fuels, specifically natural gas, accounted for only 2% of the power mix delivered to these bundled customers in 2024.

Essential, reliable electric and natural gas utility service

As a regulated monopoly, the core value proposition is the provision of essential service. Beyond the safety investments mentioned, reliability is being enhanced through technology. PG&E Corporation (PCG) is integrating distributed energy resources (DERs) and has targets for battery storage deployment to manage peak demand and integrate intermittent renewables. They had brought online over 2,100 MW of new incremental battery storage capacity by early 2024, with an additional 687.5 MW planned for 2025. This helps ensure service continuity even when weather stresses the system.

Bill stabilization efforts to keep residential rates flat or decreasing

You're right to focus on affordability; significant safety spending can quickly translate into customer bill shock. PG&E Corporation (PCG) has actively worked to offset these necessary costs. The company forecasts no further electric rate increases in 2025. Furthermore, residential electric rates have dropped three times over the past 15 months (as of September 2025), effectively offsetting prior increases.

The most recent rate action in September 2025 saw a 2.1% residential electric rate decrease, which translates to about a $5 monthly dip for a typical customer using 500 kWh. Looking forward, the goal is for total residential combined gas and electric bills to be flat in 2027 compared to 2025 levels, even with proposed rate case increases, because expiring cost recoveries are expected to offset them. For customers needing immediate help, the PG&E REACH program distributed over $50 million in financial assistance last year alone.

Supporting California's clean energy goals and electric vehicle adoption

PG&E Corporation (PCG) is a key enabler for the state's decarbonization targets. The utility has a stated goal to serve 3 million EVs by 2030. This is a critical component, as transportation is the single largest source of climate-related pollution in California.

Here are the adoption metrics as of early to mid-2025:

• EVs currently in PG&E's service area: Over 700,000
• Impact of next 1 million EVs connecting: Estimated 2% to 3% lower residential electric rates by spreading fixed costs
• EV Fleet Program Goal: Deploy over 6,500 electric vehicles in medium- and heavy-duty fleets

The company has already helped more than 13,000 income-qualified customers get into EVs through rebate programs, directly addressing the equity gap in the clean energy transition. Finance: draft 13-week cash view by Friday.

PG&E Corporation (PCG) - Canvas Business Model: Customer Relationships

The service relationship for PG&E Corporation customers is fundamentally highly regulated, meaning terms of service, rates, and operational standards are non-negotiable and set by the California Public Utilities Commission (CPUC).

For the 2025 fiscal year, PG&E Corporation reaffirmed its GAAP earnings guidance in the range of $1.30 to $1.36 per share, reflecting the financial outcomes within this regulated structure. Furthermore, residential combined gas and electric bills were reported as remaining flat in January 2025 compared to January 2024, assuming similar usage patterns.

Community engagement is heavily focused on mitigating the impact of Public Safety Power Shutoff (PSPS) events, a necessary tool used as a last resort due to wildfire risk. PG&E Corporation is working to improve the PSPS experience, including expanding the use of 13 distribution microgrids, with two pre-staged with temporary generation for the 2025 wildfire season. During a January 2025 PSPS event, PG&E de-energized 583 customers in two TPs in one county, while contacting more than 10 community representatives to ensure local preparation.

Digital self-service tools offer personalized tracking, allowing customers to view electric and gas cost and usage trends by Day, Week, Month, or Year. For electric usage, data is available in 15-minute intervals, and customers can download this data or stream near real-time usage if on specific small- or medium-business rate schedules.

Support for income-qualified customers is a key relationship component. The California Alternate Rates for Energy (CARE) program provides a monthly discount of 20 percent or more on gas and electricity. PG&E Corporation supports approximately 1.4 million customers through this program, which, along with FERA, reduced customer bills by almost $1 billion in 2023.

Here are some key figures related to customer service and support initiatives:

The utility maintains several avenues for customers to manage their accounts and find assistance:

• Self-serve options to update account, pay bills, and update alert settings online.
• Access to rate analysis tools to find a potentially less expensive electric rate.
• The Relief for Energy Assistance through Community Help (REACH) program provided more than $50 million in total financial assistance to nearly 58,000 customers in 2024.
• The LIHEAP program provided over $49 million in funding to over 58,000 PG&E customers in 2024.
• CARE offers a minimum 20 percent discount on gas and electric rates.

Finance: draft 13-week cash view by Friday.

PG&E Corporation (PCG) - Canvas Business Model: Channels

You're looking at how PG&E Corporation physically connects with and delivers service to its customers across Northern and Central California. This is all about the wires, pipes, and digital touchpoints that make up their delivery mechanism.

Physical electric transmission and distribution infrastructure

The physical backbone is massive, covering a service area of approximately 70,000 square miles, serving about 16 million people. The company is actively managing this system, for instance, by burying 258 miles of powerlines in 2024 to reduce wildfire risk. For 2025 and 2026, PG&E Corporation plans to replace up to 100 miles of distribution pipelines annually, focusing on vintage plastic and steel pipes.

Here's a snapshot of the electric system utilization and related capital work:

Natural gas pipeline network and storage facilities

The natural gas delivery system is extensive. PG&E Corporation operates approximately 4.5 million natural gas distribution customer accounts. The network itself comprises significant mileage for delivery and transport.

• Natural gas distribution pipelines: 42,141 miles
• Natural gas transmission pipelines: 6,438 miles
• Total combined pipeline mileage: Over 50,000 miles
• Annual natural gas provided: Roughly 970 billion cubic feet

The utility is also focused on integrity and emissions, responding to gas odor reports within 19.6 minutes on average in 2024.

Digital platforms: Website and mobile app for billing and outage reporting

Digital channels are critical for customer interaction, especially for routine tasks and emergencies. Customer satisfaction metrics reflect the performance of these interfaces, though overall satisfaction for residential customers in the West region was low.

• Residential Customer Satisfaction (ACSI Score): 66 out of 100
• Telecommunications Customer Overall Satisfaction (9 or 10 rating): 88%
• Telecommunications Service Planning and Design Score: 9.4 out of 10
• Telecommunications Design Time Improvement: Reduced to 55 days from nearly six months in 2024

The company is using these digital improvements to streamline processes, aiming to streamline applications for repeat customers.

Customer call centers and field service personnel

Direct human interaction remains a key channel, supported by a large workforce. PG&E Corporation has approximately 28,000 coworkers who live and work in the communities served. Field service personnel are dispatched for essential tasks, including emergency response.

For income-qualified households, the Energy Savings Assistance Program provided weatherization and efficiency solutions to more than 50,750 households in 2024, and the CARE program provided a monthly discount to 1.4 million income-qualified customers.

Direct connections to large C&I and new data center loads

Serving large, new loads is a strategic channel for utilizing existing infrastructure and potentially lowering bills for all customers. The data center pipeline is substantial, representing significant future demand.

The current data center demand pipeline is estimated at 10 GW as of July 2025. This is a major increase from the 5.5 GW reported at the end of 2024.

This growth is being managed through streamlined processes like the interim implementation of Electric Rule 30, which facilitates accelerated connections for large loads. The company is also focused on connecting new commercial and industrial demand, having connected nearly 14,000 new customers in 2024.

PG&E Corporation (PCG) - Canvas Business Model: Customer Segments

You're looking at the core groups PG&E Corporation (PCG) serves across its 70,000-square-mile territory in Northern and Central California. These segments drive the massive infrastructure investment you see in their capital plan, which is approximately $63 billion through 2028.

The customer base is segmented by service type and energy demand profile. Here are the key groups:

• Residential customers: Approximately 5.6 million residential gas customers served as of 2024.
• Commercial and Industrial (C&I) businesses.
• High-demand data centers with a 10 gigawatt pipeline.
• Agricultural operations across Northern and Central California.
• Public sector entities (e.g., street lighting, government facilities).

The sheer scale of the residential base is significant, but the growth in data center demand is reshaping the load profile. The 10 GW data center pipeline, as reported in July 2025, is enough electricity to power about 7.5 million homes simultaneously.

Here's a breakdown of the non-residential segments with the latest available financial contribution data:

The data center pipeline growth is notable; it increased from 5.5 GW at the end of 2024 to 10 GW by July 2025.

For the broader Commercial and Industrial group, which PG&E Corporation often groups with Agricultural for reporting purposes, the combined electric revenue for the three months ended March 31, 2025, was substantial. You can see the individual components above, but it's worth noting the operational data available for these non-residential classes:

• PG&E Corporation provides non-confidential, aggregated usage data quarterly for Residential, Commercial, Industrial, and Agricultural customer types.
• Public datasets must meet aggregation standards: a minimum of 100 Residential customers and a minimum of 15 Non-Residential customers per aggregation point.

The utility is actively connecting new customers, having connected nearly 14,000 new customers to its electric system in 2024, and anticipates load growth of 2% to 4% per year through 2040, partly driven by these segments.

PG&E Corporation (PCG) - Canvas Business Model: Cost Structure

You're looking at the major outflows that keep PG&E Corporation's system running and hardening it against climate risk. These costs are significant and heavily scrutinized by regulators.

Capital Expenditures (CapEx) Scale

The investment required for grid modernization is massive, underpinning future operational costs. PG&E Corporation has a multi-year plan that signals the scale of this spending commitment.

• PG&E Corporation has a 5-year capital plan of $63 billion through 2028.
• A more recent plan outlines $73 billion in capital expenditures through 2030.
• The weighted average rate base is projected to grow from $69 billion in 2025 to $106 billion by 2030.

Wildfire Mitigation Costs (Undergrounding, Vegetation Management, Insurance)

These costs are a primary driver of capital deployment and rate increases. The utility has a dedicated, multi-year plan to address this risk.

• PG&E planned to spend roughly $18 billion through 2025 under its 2023-2025 Wildfire Mitigation Plan (WMP) cycle.
• The 2026-2028 Wildfire Mitigation Plan includes targets like nearly 1,100 miles of undergrounding.
• PG&E Corporation deployed 1,000 miles of underground power lines in the highest fire-risk areas.
• The California legislature expanded the state's wildfire fund by $18 billion.

Debt Servicing and Unrecoverable Interest Expense

Interest expense related to certain financing activities is explicitly called out as a non-core item impacting GAAP earnings.

For 2025 GAAP earnings guidance, costs related to unrecoverable interest expense are projected to be between $350 million and $400 million after tax. The guidance range for 2025 non-core items, which includes this expense, is $360 million to $400 million after tax.

Energy Procurement Costs (Natural Gas and Electricity)

These costs are managed through regulatory proceedings that set procurement-related rates.

The annual Energy Resource and Recovery Account (ERRA) forecast proceeding sets electric procurement-related rates. For the January 2025 rate change, PG&E saw an average rate decrease of about 0.5% for bundled customers for PG&E-provided services. The utility is conducting a solicitation to sell Greenhouse Gas-Free (GHG-Free) energy generated in 2025 and 2026.

Here's a look at the components impacting the cost structure, based on recent financial reporting:

Operating and Maintenance (O&M) Expenses

PG&E Corporation is actively targeting reductions in its day-to-day running costs, excluding fuel expenses.

• PG&E Corporation is on track to meet its 2% non-fuel O&M reduction target in 2025.
• The company saved over $200 million in non-fuel O&M costs in each of the past three years.
• Year-to-date 2025 performance was positively impacted by operating and maintenance savings of +8¢ per share.

PG&E Corporation (PCG) - Canvas Business Model: Revenue Streams

The revenue streams for PG&E Corporation are fundamentally anchored in its regulated utility operations, selling electricity and natural gas to customers across Northern and Central California. This forms the base upon which all other financial metrics are calculated.

Regulated electric and natural gas sales to customers are the primary source of top-line revenue. As of the first quarter of 2025, PG&E Corporation reported total operating revenues of $5,983 million. This revenue supports a massive service territory, covering approximately 5.3 million electricity customers and 4.6 million gas customers. The company is actively working on bill stabilization, with average residential electric rates reported as lower in March 2025 compared to the previous year.

A critical component of the regulated revenue model is the Return on Equity (ROE) earned on the regulated rate base. This is a key lever for profitability within the regulatory framework. For instance, the decrease in GAAP earnings per share for the first quarter of 2025 was partially attributed to a lower authorized ROE, which had recently reduced from 10.7% to 10.28% following a cost of capital decision. This direct impact on the authorized return highlights the sensitivity of earnings to regulatory outcomes.

The overall revenue requirement, which dictates the total authorized revenue PG&E Corporation can collect, is determined through the Authorized revenue from General Rate Case (GRC) decisions. PG&E Corporation's latest application sought a revenue requirement of $17.43 billion for the 2025 fiscal year. The rates effective January 1, 2025, were established through the consolidation of authorized changes via an Annual Electric True-Up advice letter. The Utility noted that its General Rate Case proposal submitted in 2025 represented its smallest percentage increase in a decade.

While specific industrial electric revenue for Q1 2025 is not explicitly detailed in the latest reports, the overall revenue performance reflects the combined sales to all customer classes. The company's performance is tracked through quarterly earnings, which give you a view of the flow of funds:

Finally, the revenue structure includes performance-based mechanisms, such as Incentive revenues tied to safety and performance metrics. These incentive revenues are explicitly listed as a factor expected to drive non-GAAP core earnings for the full year 2025. The company also tracks progress against operational goals that can influence regulatory outcomes, such as meeting its 2% non-fuel O&M reduction target, which it was on track to meet or exceed as of the second quarter of 2025.

The overall expectation for the year is captured in the guidance:

• Full Year 2025 GAAP EPS Guidance (as of July 2025): $1.26 to $1.32 per share.
• Full Year 2025 Non-GAAP Core EPS Guidance (narrowed as of October 2025): $1.49 to $1.51 per share.
• Five-Year Capital Plan (through 2028): $63 billion.

Finance: draft 13-week cash view by Friday.