PG&E Corporation
Price History
Company Overview
Business Model: PG&E Corporation is a holding company whose primary operating subsidiary, Pacific Gas and Electric Company, generates revenues primarily through the sale and delivery of electricity and natural gas to customers. The companies operate under a "Triple Bottom Line" framework, focusing on people, planet, and prosperity, underpinned by a Lean operating model.
Market Position: Pacific Gas and Electric Company is a public utility serving Northern and Central California. It operates as a regulated entity providing essential electricity and natural gas services across its service territory.
Recent Strategic Developments:
- Diablo Canyon Power Plant Extension: The California Public Utilities Commission approved extended operations for Diablo Canyon Power Plant until October 31, 2029 (Unit 1) and October 31, 2030 (Unit 2).
- Wildfire Mitigation: In 2024, Pacific Gas and Electric Company undergrounded 259 miles of lines, bringing the total remote grids to 11.
- Energy Storage Procurement: Pacific Gas and Electric Company has procured 2,168 MW of battery energy storage for future deployment, in addition to 183 MW owned and 2,435 MW contracted operational capacity as of December 31, 2024.
- New Dividend Policy: PG&E Corporation established a new dividend policy in December 2024, targeting approximately a 20% payout ratio of core earnings by 2028.
Geographic Footprint: The primary operational region and key market is Northern and Central California.
Financial Performance
Revenue Analysis
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Operating Revenues | $24,419 million | $24,428 million | -0.04% |
| Gross Profit | $20,966 million | $20,231 million | +3.63% |
| Operating Income | $4,459 million | $2,671 million | +67.69% |
| Net Income | $2,512 million | $2,256 million | +11.35% |
Profitability Metrics (2024):
- Gross Margin: 85.86%
- Operating Margin: 18.26%
- Net Margin: 10.29%
Investment in Growth:
- Capital Expenditures: $10.6 billion (2024 total recorded)
- Strategic Investments: Pacific Gas and Electric Company forecasts capital expenditures of $12.9 billion (2025), $12.0 billion (2026), $13.6 billion (2027), and $14.0 billion (2028). Procurement of 2,168 MW of battery energy storage for future deployment.
Business Segment Analysis
PG&E Corporation and Pacific Gas and Electric Company assess financial performance and allocate resources on a consolidated basis, operating as one reportable segment.
Capital Allocation Strategy
Shareholder Returns:
- Dividend Payments: PG&E Corporation declared common stock dividends of $0.01 per share for three quarterly payments ($21 million each) and $0.025 per share for one quarterly payment ($55 million) in 2024. A mandatory convertible preferred stock dividend of $0.7167 per share was declared on December 12, 2024, payable March 1, 2025.
- Future Capital Return Commitments: PG&E Corporation targets an approximate 20% payout ratio of core earnings by 2028.
Balance Sheet Position (as of December 31, 2024):
- Cash and Equivalents: $235 million (PG&E Corporation), $705 million (Pacific Gas and Electric Company)
- Total Debt: ~$5.65 billion (PG&E Corporation), ~$51.9 billion (Pacific Gas and Electric Company)
- Net Cash Position: $-5.415 billion (PG&E Corporation), $-51.195 billion (Pacific Gas and Electric Company)
- Total Long-Term Debt: $5,611 million (PG&E Corporation), $47,958 million (Pacific Gas and Electric Company)
- Preferred Stock: $1,579 million (PG&E Corporation), $258 million (Pacific Gas and Electric Company)
Cash Flow Generation (Pacific Gas and Electric Company):
- Operating Cash Flow: $8,268 million (2024), $5,097 million (2023)
- Free Cash Flow: $-3,107 million (2024) (Operating Cash Flow - Capital Expenditures)
Operational Excellence
Production & Service Model: Pacific Gas and Electric Company generates, transmits, and distributes electricity and natural gas. Its electricity resources are estimated to be 98% GHG-free (63% Nuclear, 12% Large Hydroelectric, 23% Renewable) as of 2024. Renewable energy resources accounted for an estimated 23% of total annual retail sales in 2024 (5,920 GWh).
Supply Chain Architecture: Key Suppliers & Partners:
- Renewable Energy: Contracts expire between 2025 and 2045.
- Conventional Energy: Contracts expire between 2025 and 2044.
- Natural Gas: Supply, transportation, and storage agreements expire between 2025 and 2042.
- Nuclear Fuel: Agreements expire between 2025 and 2030.
Facility Network (as of December 31, 2024):
- Manufacturing (Generation): 121 owned generation units with 7,815 MW total net operating capacity, including Diablo Canyon Power Plant (2 units, 2,240 MW), 94 hydroelectric units (3,840 MW), 12 photovoltaic facilities (152 MW), and 2 fossil fuel-fired plants (1,400 MW).
- Electricity Transmission: Approximately 18,000 circuit miles (60 kV to 500 kV) and 33 substations (~67,000 MVA capacity).
- Electricity Distribution: Approximately 108,000 circuit miles (~27% underground, ~73% overhead) and 603 distribution substations (~33,000 MVA capacity).
- Natural Gas System Assets: Approximately 45,200 miles of distribution pipelines, 5,700 miles of transmission pipelines, 9 compressor stations, and 3 owned underground storage fields (with a 25% interest in a fourth).
Operational Metrics:
- Wildfire Mitigation: In 2024, Pacific Gas and Electric Company undergrounded 259 miles of lines. Utility equipment was not involved in the ignition of any major wildfires in 2024, though California Public Utilities Commission-reportable ignitions increased compared to 2022 and 2023.
- Energy Storage: Pacific Gas and Electric Company owned 183 MW and contracted for 2,435 MW of operational energy storage capacity as of December 31, 2024.
Market Access & Customer Relationships
Go-to-Market Strategy: Pacific Gas and Electric Company's primary strategy involves the sale and delivery of electricity and natural gas to customers within its regulated service territory.
Geographic Revenue Distribution: Revenues are generated from customers primarily located in Northern and Central California.
Competitive Intelligence
Market Structure & Dynamics
Industry Characteristics: The company operates within a highly regulated public utility industry in California, characterized by oversight from the California Public Utilities Commission, Federal Energy Regulatory Commission, and Nuclear Regulatory Commission.
Competitive Positioning Matrix:
| Competitive Factor | Company Position | Key Differentiators |
|---|---|---|
| Technology Leadership | Moderate | Significant investment in energy storage; high percentage of GHG-free electricity resources. |
| Market Share | Leading | Exclusive provider of electricity and natural gas in its service territory due to regulated monopoly status. |
| Cost Position | Competitive | Regulated cost recovery mechanisms, but subject to significant wildfire-related and environmental remediation costs. |
| Customer Relationships | Moderate | Regulated service provider, with ongoing efforts in wildfire mitigation and safety to enhance public trust. |
Risk Assessment Framework
Strategic & Market Risks
- Wildfire Liabilities: Significant accrued losses for past wildfires (2019 Kincade fire: $1.225 billion; 2021 Dixie fire: $1.925 billion; 2022 Mosquito fire: $100 million), with ongoing litigation and potential for future liabilities.
- Ownership Restrictions: PG&E Corporation's Amended Articles restrict direct/indirect acquisition of 4.75% or more of combined equity value (effective limitation 3.92% as of February 5, 2025) to preserve tax attributes.
Operational & Execution Risks
- Supply Chain Vulnerabilities: Extensive purchase commitments for energy, natural gas, and nuclear fuel, totaling $32,821 million as of December 31, 2024, expose the company to supply and price fluctuations.
- Capacity Constraints: Continued operation of Diablo Canyon Power Plant is critical, with Unit 1 and Unit 2 operating licenses pending relicensing review, though CPUC approved extensions until 2029 and 2030, respectively.
Financial & Regulatory Risks
- Market & Financial Risks: Exposure to regulatory disallowances and penalties from the California Public Utilities Commission (up to $100,000 per day per violation, $8 million per citation) and Federal Energy Regulatory Commission (up to $1 million per day).
- Regulatory & Compliance Risks: Subject to the Inflation Reduction Act's 15% corporate alternative minimum tax (expected to pay starting 2027) and new California law suspending net operating losses and limiting business credits (expected to pay state income taxes in 2025 and 2026).
- Environmental Remediation Liabilities: Accrued undiscounted gross environmental liabilities of $1.3 billion as of December 31, 2024, with potential future costs up to $2.3 billion. Costs for the Hinkley natural gas compressor site are not recoverable through rates or insurance.
- Nuclear Incident Liability: Pacific Gas and Electric Company may be required to pay up to $332 million per nuclear incident in the United States, with public liability claims limited to $16.3 billion under the Price-Anderson Act.
Innovation & Technology Leadership
Research & Development Focus:
- Core Technology Areas: Investment in energy storage solutions, with 2,168 MW of battery energy storage procured for future deployment.
Leadership & Governance
Executive Leadership Team (as of February 12, 2025)
| Position | Executive | Tenure | Prior Experience |
|---|---|---|---|
| PG&E Corporation | |||
| 300 Lakeside Drive | |||
| Oakland, California 94612 | |||
| (415) 973-1000 |
Pacific Gas and Electric Company 300 Lakeside Drive Oakland, California 94612 (415) 973-7000
Core Analysis Principles
Information Integrity:
- Extract only verifiable facts explicitly stated in the filing
- Rephrase technical or legal language into clear business insights
- Never speculate, infer, or supplement with external knowledge
- Omit sections and talking points entirely when relevant data is unavailable
- Use professional narrative with strategic use of tables and bullet points
Company Name Standards:
- Format all entities as they are mentioned in the filing without ticker or exchange symbols
- Apply consistently across all mentions of business entities
Content Standards:
- Focus on material business information relevant to investment decisions
- Prioritize quantitative data with context
- Emphasize strategic initiatives and competitive positioning
- Highlight operational metrics and performance drivers
Output Structure
Company Overview
Business Model: PG&E Corporation is a holding company whose primary operating subsidiary, Pacific Gas and Electric Company, generates revenues primarily through the sale and delivery of electricity and natural gas to customers. The companies operate under a "Triple Bottom Line" framework, focusing on people, planet, and prosperity, underpinned by a Lean operating model.
Market Position: Pacific Gas and Electric Company is a public utility serving Northern and Central California. It operates as a regulated entity providing essential electricity and natural gas services across its service territory.
Recent Strategic Developments:
- Diablo Canyon Power Plant Extension: The California Public Utilities Commission approved extended operations for Diablo Canyon Power Plant until October 31, 2029 (Unit 1) and October 31, 2030 (Unit 2).
- Wildfire Mitigation: In 2024, Pacific Gas and Electric Company undergrounded 259 miles of lines, bringing the total remote grids to 11.
- Energy Storage Procurement: Pacific Gas and Electric Company has procured 2,168 MW of battery energy storage for future deployment, in addition to 183 MW owned and 2,435 MW contracted operational capacity as of December 31, 2024.
- New Dividend Policy: PG&E Corporation established a new dividend policy in December 2024, targeting approximately a 20% payout ratio of core earnings by 2028.
Geographic Footprint: The primary operational region and key market is Northern and Central California.
Financial Performance
Revenue Analysis
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Operating Revenues | $24,419 million | $24,428 million | -0.04% |
| Gross Profit | $20,966 million | $20,231 million | +3.63% |
| Operating Income | $4,459 million | $2,671 million | +67.69% |
| Net Income | $2,512 million | $2,256 million | +11.35% |
Profitability Metrics (2024):
- Gross Margin: 85.86%
- Operating Margin: 18.26%
- Net Margin: 10.29%
Investment in Growth:
- R&D Expenditure: Not mentioned
- Capital Expenditures: $10.6 billion (2024 total recorded)
- Strategic Investments: Pacific Gas and Electric Company forecasts capital expenditures of $12.9 billion (2025), $12.0 billion (2026), $13.6 billion (2027), and $14.0 billion (2028). Procurement of 2,168 MW of battery energy storage for future deployment.
Business Segment Analysis
PG&E Corporation and Pacific Gas and Electric Company assess financial performance and allocate resources on a consolidated basis, operating as one reportable segment.
Capital Allocation Strategy
Shareholder Returns:
- Share Repurchases: Not mentioned
- Dividend Payments: PG&E Corporation declared common stock dividends of $0.01 per share for three quarterly payments ($21 million each) and $0.025 per share for one quarterly payment ($55 million) in 2024. A mandatory convertible preferred stock dividend of $0.7167 per share was declared on December 12, 2024, payable March 1, 2025.
- Dividend Yield: Not mentioned
- Future Capital Return Commitments: PG&E Corporation targets an approximate 20% payout ratio of core earnings by 2028.
Balance Sheet Position (as of December 31, 2024):
- Cash and Equivalents: $235 million (PG&E Corporation), $705 million (Pacific Gas and Electric Company)
- Total Debt: ~$5.65 billion (PG&E Corporation), ~$51.9 billion (Pacific Gas and Electric Company)
- Net Cash Position: $-5.415 billion (PG&E Corporation), $-51.195 billion (Pacific Gas and Electric Company)
- Credit Rating: Not mentioned
- Debt Maturity Profile: Not mentioned
Cash Flow Generation (Pacific Gas and Electric Company):
- Operating Cash Flow: $8,268 million (2024), $5,097 million (2023)
- Free Cash Flow: $-3,107 million (2024) (Operating Cash Flow - Capital Expenditures)
- Cash Conversion Metrics: Not mentioned
Operational Excellence
Production & Service Model: Pacific Gas and Electric Company generates, transmits, and distributes electricity and natural gas. Its electricity resources are estimated to be 98% GHG-free (63% Nuclear, 12% Large Hydroelectric, 23% Renewable) as of 2024. Renewable energy resources accounted for an estimated 23% of total annual retail sales in 2024 (5,920 GWh).
Supply Chain Architecture: Key Suppliers & Partners:
- Renewable Energy: Contracts expire between 2025 and 2045.
- Conventional Energy: Contracts expire between 2025 and 2044.
- Natural Gas: Supply, transportation, and storage agreements expire between 2025 and 2042.
- Nuclear Fuel: Agreements expire between 2025 and 2030.
Facility Network (as of December 31, 2024):
- Manufacturing (Generation): 121 owned generation units with 7,815 MW total net operating capacity, including Diablo Canyon Power Plant (2 units, 2,240 MW), 94 hydroelectric units (3,840 MW), 12 photovoltaic facilities (152 MW), and 2 fossil fuel-fired plants (1,400 MW).
- Electricity Transmission: Approximately 18,000 circuit miles (60 kV to 500 kV) and 33 substations (~67,000 MVA capacity).
- Electricity Distribution: Approximately 108,000 circuit miles (~27% underground, ~73% overhead) and 603 distribution substations (~33,000 MVA capacity).
- Natural Gas System Assets: Approximately 45,200 miles of distribution pipelines, 5,700 miles of transmission pipelines, 9 compressor stations, and 3 owned underground storage fields (with a 25% interest in a fourth).
Operational Metrics:
- Wildfire Mitigation: In 2024, Pacific Gas and Electric Company undergrounded 259 miles of lines. Utility equipment was not involved in the ignition of any major wildfires in 2024, though California Public Utilities Commission-reportable ignitions increased compared to 2022 and 2023.
- Energy Storage: Pacific Gas and Electric Company owned 183 MW and contracted for 2,435 MW of operational energy storage capacity as of December 31, 2024.
Market Access & Customer Relationships
Go-to-Market Strategy: Distribution Channels:
- Direct Sales: Pacific Gas and Electric Company's primary strategy involves the sale and delivery of electricity and natural gas directly to customers within its regulated service territory.
- Channel Partners: Not mentioned
- Digital Platforms: Not mentioned
Customer Portfolio: Enterprise Customers: Not mentioned Customer Concentration: Not mentioned
Geographic Revenue Distribution:
- Northern and Central California: 100% of total revenue (based on service area description)
- Growth Markets: Not mentioned
Competitive Intelligence
Market Structure & Dynamics
Industry Characteristics: The company operates within a highly regulated public utility industry in California, characterized by oversight from the California Public Utilities Commission, Federal Energy Regulatory Commission, and Nuclear Regulatory Commission.
Competitive Positioning Matrix:
| Competitive Factor | Company Position | Key Differentiators |
|---|---|---|
| Technology Leadership | Moderate | Significant investment in energy storage; high percentage of GHG-free electricity resources. |
| Market Share | Leading | Exclusive provider of electricity and natural gas in its service territory due to regulated monopoly status. |
| Cost Position | Competitive | Regulated cost recovery mechanisms, but subject to significant wildfire-related and environmental remediation costs. |
| Customer Relationships | Moderate | Regulated service provider, with ongoing efforts in wildfire mitigation and safety to enhance public trust. |
Direct Competitors
Primary Competitors: Not mentioned
Emerging Competitive Threats: Not mentioned
Competitive Response Strategy: Not mentioned
Risk Assessment Framework
Strategic & Market Risks
- Market Dynamics:
- Wildfire Liabilities: Significant accrued losses for past wildfires (2019 Kincade fire: $1.225 billion; 2021 Dixie fire: $1.925 billion; 2022 Mosquito fire: $100 million), with ongoing litigation and potential for future liabilities.
- Ownership Restrictions: PG&E Corporation's Amended Articles restrict direct/indirect acquisition of 4.75% or more of combined equity value (effective limitation 3.92% as of February 5, 2025) to preserve tax attributes.
- Technology Disruption: Not mentioned
- Customer Concentration: Not mentioned
Operational & Execution Risks
- Supply Chain Vulnerabilities:
- Supplier Dependency: Extensive purchase commitments for energy, natural gas, and nuclear fuel, totaling $32,821 million as of December 31, 2024, expose the company to supply and price fluctuations.
- Geographic Concentration: Not mentioned
- Capacity Constraints: Continued operation of Diablo Canyon Power Plant is critical, with Unit 1 and Unit 2 operating licenses pending relicensing review, though California Public Utilities Commission approved extensions until 2029 and 2030, respectively.
Financial & Regulatory Risks
- Market & Financial Risks:
- Demand Volatility: Not mentioned
- Foreign Exchange: Not mentioned
- Credit & Liquidity: Exposure to regulatory disallowances and penalties from the California Public Utilities Commission (up to $100,000 per day per violation, $8 million per citation) and Federal Energy Regulatory Commission (up to $1 million per day).
- Regulatory & Compliance Risks:
- Industry Regulation: Subject to the Inflation Reduction Act's 15% corporate alternative minimum tax (expected to pay starting 2027) and new California law suspending net operating losses and limiting business credits (expected to pay state income taxes in 2025 and 2026).
- Environmental Remediation Liabilities: Accrued undiscounted gross environmental liabilities of $1.3 billion as of December 31, 2024, with potential future costs up to $2.3 billion. Costs for the Hinkley natural gas compressor site are not recoverable through rates or insurance.
- Nuclear Incident Liability: Pacific Gas and Electric Company may be required to pay up to $332 million per nuclear incident in the United States, with public liability claims limited to $16.3 billion under the Price-Anderson Act.
Geopolitical & External Risks
- Geopolitical Exposure: Not mentioned
- Trade Relations: Not mentioned
- Sanctions & Export Controls: Not mentioned
Innovation & Technology Leadership
Research & Development Focus: Core Technology Areas:
- Energy Storage: Investment in energy storage solutions, with 2,168 MW of battery energy storage procured for future deployment.
- Innovation Pipeline: Not mentioned
Intellectual Property Portfolio:
- Patent Strategy: Not mentioned
- Licensing Programs: Not mentioned
- IP Litigation: Not mentioned
Technology Partnerships: Not mentioned
Leadership & Governance
Executive Leadership Team (as of February 12, 2025)
| Position | Executive | Tenure | Prior Experience |
|---|