PG&E Corporation’s (NYSE: PCG) second-quarter 2017 net income after dividends on preferred stock (also called “income available for common shareholders”) was $406 million or $0.79 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with $206 million, or $0.41 per share, for the second quarter of 2016. The quarter-over-quarter increase primarily reflects the timing impacts of regulatory decisions in Pacific Gas and Electric Company’s 2017 General Rate Case (GRC) and its 2015 Gas Transmission and Storage (GT&S) rate case.
GAAP results include items that management does not consider part of normal, ongoing operations (items impacting comparability), which totaled $50 million of pre-tax earnings, or $0.07 per share, for the quarter. For the second quarter of 2017, these items included a cost disallowance related to the settlement pending before the California Public Utilities Commission in connection with the joint proposal to retire Diablo Canyon, costs for work to clear pipeline rights-of-way, and legal and regulatory costs related to the Butte fire, gas matters, and regulatory communications. These costs were partially offset by insurance recoveries related to the Butte fire.
“Our focus on delivering safe and reliable service, running our operations affordably, and supporting California’s clean energy goals continued to drive solid operational and financial results in the second quarter, while positioning PG&E for long-term growth and success,” said PG&E Corporation CEO and President Geisha Williams.
Second-quarter highlights included:
- Pacific Gas and Electric Company achieved two international re-certifications for best-in-class operational standards in its gas operations. The re-certifications for both the International Organization for Standardization (ISO) 55001 and Publicly Available Specification (PAS) 55-1 standards were awarded by Lloyd’s Register, the independent auditor.
- Pacific Gas and Electric Company received Edison Electric Institute’s 2017 Emergency Recovery Award for the company’s response to record winter storms. Facing a record 18 major storm event days this winter, PG&E safely restored more than 2.3 million customers — the vast majority within 24 hours.
- Pacific Gas and Electric Company received Information Week’s IT Excellence Award for the development of its Mobile Asset Inspection app, which provides field inspectors with real-time information including maps, customer information, and safety and access information.
Earnings from operations
On a non-GAAP basis, excluding items impacting comparability, PG&E Corporation’s earnings from operations in the second quarter of 2017 were $440 million, or $0.86 per share, compared with $330 million, or $0.66 per share, in the second quarter of 2016.
The increase in quarter-over-quarter earnings from operations reflected additional authorized revenue as a result of the 2017 GRC decision, the timing impacts of the phase-two decision in the 2015 GT&S rate case issued December 1, 2016, and growth in rate base earnings.
PG&E Corporation is updating 2017 guidance for projected GAAP earnings in the range of $3.54 to $3.79 per share. On a non-GAAP basis, the guidance range for projected 2017 earnings from operations remains unchanged at $3.55 to $3.75 per share.
Guidance is based on various assumptions and forecasts, including those relating to future authorized revenues, expenses, capital expenditures, rate base, equity issuances, and certain other factors. PG&E Corporation discloses historical financial results and provides guidance based on “earnings from operations” in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of items impacting comparability. See the accompanying tables for a reconciliation of earnings from operations to consolidated income available for common shareholders.
Supplemental financial information
In addition to the financial information accompanying this release, presentation slides for today’s conference call with the financial community have been furnished to the Securities and Exchange Commission (SEC) and are available on PG&E Corporation’s website at: http://investor.pgecorp.com/financials/quarterly-earnings-reports/default.aspx.
Email Currents at Currents@pge.com.