PG&E's Q4 2024 Earnings Call: Wildfire Risk, Fund Management, and EV Growth Expectations Under Scrutiny

These are the key contradictions discussed in PG&E's latest 2024 Q4 earnings call, specifically including: Wildfire Risk and Fund Management, AB 1054 and Wildfire Fund Improvements, Focus on Wildfire Safety and Affordability, and EV Growth Expectations:



Financial Performance and Growth:
- PG&E reported core earnings per share of $0.31 for Q4 2024, resulting in $1.36 for the full year, which was a 11% increase over 2023.
- The growth was driven by higher customer capital investment and effective risk mitigation strategies.

Capital Investment and Financing:
- PG&E announced a $63 billion capital investment plan through 2028, with a $3 billion equity funding completed in November and December.
- The plan is supported by favorable market conditions and enhances financial safety while maintaining flexibility for future needs.

Beneficial Load and Rate Base Growth:
- PG&E is seeing an increase in beneficial load applications, with 5.5 gigawatts of new potential data center load, with 1.4 gigawatts in final engineering.
- This growth is part of a thoughtful, deliberate strategy to pursue load growth without imposing cost shifts to residential customers.

Wildfire Mitigation and Risk Management:
- PG&E has improved its nonfuel O&M costs by 4% in 2024, focusing on risk-informed safety measures.
- The company is committed to ongoing improvements in wildfire mitigation plans, including the implementation of advanced technologies like down conductor devices.

Regulatory and Policy Environment:
- PG&E is actively engaging with policymakers to strengthen the AB 1054 construct and ensure financial certainty for investors, given concerns raised by recent wildfire events.
- The company is advocating for timely reforms to maintain investor confidence in the California regulatory framework.