Financial Analysis

WILDFIRE-RELATED CONTINGENCIES Liability Overview PG&E Corporation and the Utility have significant contingencies arising from their operations, including contingencies related to wildfires. PG&E Corporation and the Utility record a provision for a loss contingency when they determine that it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. PG&E Corporation and the Utility record a wildfire-related liability when they determine that a loss is probable, and they can reasonably estimate the loss or a range of losses. The provision is based on the lower end of the range, unless an amount within the range is a better estimate than any other amount. Assessing whether a loss is probable or reasonably possible, whether the loss or a range of losses is estimable, and the amount of the accrual often requires management to exercise significant judgment about future events. Management makes these assessments based on a number of assumptions and subjective factors, including negotiations (including those during mediations with claimants), discovery, settlements and payments, rulings, advice of legal counsel, and other information and events pertaining to a particular matter, and estimates based on currently available information and prior experience with wildfires. Unless expressly noted otherwise, the estimated liabilities in this Note reflect the lower end of the range of the reasonably estimable range of losse …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Credit Facilities and Term Loans The following table summarizes PG&E Corporations and the Utilitys outstanding borrowings and availability under their credit facilities as of December 31, 2025: (in millions) Termination Date Maximum Facility Limit Loans Outstanding Letters of Credit Outstanding Facility Availability Utility revolving credit facility June 2030 $ 5,400 (1) $ (1,575) $ (639) $ 3,186 Utility Receivables Securitization Program (2) June 2027 1,750 (3) (1,750) (3) PG&E Corporation revolving credit facility June 2028 650 650 Total credit facilities $ 7,800 $ (3,325) $ (639) $ 3,836 (1) Includes a $2.0 billion letter of credit sublimit. (2) For more information on the Receivables Securitization Program, see Variable Interest Entities in Note 2 above. (3) The amount the Utility may borrow under the Receivables Securitization Program is limited to the lesser of the facility limit and the facility availability. Further, the facility availability may vary based on the amount of accounts receivable that the Utility owns that are eligible for sale to the SPV and the portion of those accounts receivable that are sold to the SPV that are eligible for advances by the lenders under the Receivables Securitization Program. Utility On April 11, 2025, the Utility amended its existing $525 million term loan agreement to extend the maturity date to April 10, 2026. The loan bears interest based on the Utilitys election of either (1) Term SOFR (plus a 0.10% credit spread a …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Utilitys revenues disaggregated by type of customer: Year Ended December 31, (in millions) 2025 2024 2023 Electric Revenue from contracts with customers Residential $ 6,976 $ 7,504 $ 6,041 Commercial 7,022 7,201 5,643 Industrial 1,929 2,065 1,784 Agricultural 1,825 1,815 1,413 Public street and highway lighting 105 103 83 Other, net (1) 72 (47) 136 Total revenue from contracts with customers - electric 17,929 18,641 15,100 Regulatory balancing accounts (2) 389 (830) 2,324 Total electric operating revenue $ 18,318 $ 17,811 $ 17,424 Natural gas Revenue from contracts with customers Residential $ 3,651 $ 3,089 $ 3,686 Commercial 1,074 984 1,052 Transportation service only 1,937 1,815 1,603 Other, net (1) 101 159 (145) Total revenue from contracts with customers - gas 6,763 6,047 6,196 Regulatory balancing accounts (2) (146) 561 808 Total natural gas operating revenue 6,617 6,608 7,004 Total operating revenues $ 24,935 $ 24,419 $ 24,428 (1) This activity is primarily related to the change in unbilled revenue and amounts subject to refund, partially offset by other miscellaneous revenue items. (2) These amounts represent alternative revenues authorized to be billed or refunded to customers. …

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FAIR VALUE MEASUREMENTS PG&E Corporation and the Utility measure their cash equivalents, self-insurance assets, trust assets, and price risk management instruments at fair value. A three-tier fair value hierarchy is established that prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Other inputs that are directly or indirectly observable in the marketplace. Level 3 Unobservable inputs which are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility. Fair Value Measurements At December 31, 2025 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 634 $ $ $ $ 634 Fixed-income securities Self-insurance investments Short-term investments 1,120 1,120 Total Self-insurance investments (2) 1,120 1,120 Nuclear decommissioning trusts Short-term investments 94 94 Global equity securities 2,433 2,433 Fixed-income securities 1,445 1,113 2,558 Assets measured at NAV 26 Total nuclear decommissioning trusts (3) 3,972 1,113 5,111 Customer credit trus …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES PG&E Corporation and the Utility use the asset and liability method of accounting for income taxes. The income tax provision includes current and deferred income taxes resulting from operations during the year. PG&E Corporation and the Utility estimate current period tax expense in addition to calculating deferred tax assets and liabilities. Deferred tax assets and liabilities result from temporary tax and accounting timing differences, such as those arising from depreciation expense or tax carryforwards. PG&E Corporation and the Utility recognize a tax benefit if it is more likely than not that a tax position taken or expected to be taken in a tax return will be sustained upon examination by taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements is measured based on the largest amount of benefit that is greater than 50% likely of being realized upon settlement. As such, the difference between a tax position taken or expected to be taken in a tax return in future periods and the benefit recognized and measured pursuant to this guidance in the financial statements represents an unrecognized tax benefit. In general, investment tax credits are deferred and amortized to income over time. PG&E Corporation amortizes its investment tax credits over the projected investment recovery period. The Utility amortizes its investment tax credits over the life of the related property in accordance …

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Recently Adopted Accounting Standards Income Taxes In December 2023, the FASB issued ASU No. 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which amended the existing guidance to enhance the transparency and decision usefulness of income tax disclosures. PG&E Corporation and the Utility have applied enhanced disclosure requirements, including, but not limited to, those with respect to PG&E Corporation and the Utilitys income tax rate reconciliation and income taxes paid. This ASU became effective for PG&E Corporation and the Utility on January 1, 2025 and PG&E Corporation and the Utility have applied the enhanced disclosure requirements of ASU 2023-09 on a retrospective basis. Derivatives and Hedging and Revenue from Contracts with Customers In September 2025, the FASB issued ASU No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606 ), which amended the existing guidance to (a) reduce the cost and complexity of evaluating whether contracts with features based on the operations or activities of one of the parties to the contract are derivatives, (b) better portray the economics of those contracts in the financial statements, and (c) reduce diversity in practice resulting from the broad application of the current guidance and changing business environment. The amendments also are expected to reduce diversity in practice by clarifying the applicability of Topic 606, Revenue from Contract …

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EMPLOYEE BENEFIT PLANS Pension Plan and Postretirement Benefits Other than Pensions (PBOP) PG&E Corporation and the Utility sponsor a non-contributory defined benefit pension plan for eligible employees hired before December 31, 2012 and a cash balance plan for those eligible employees hired after this date or who made a one-time election to participate (Pension Plan). Certain trusts underlying these plans are qualified trusts under the IRC. If certain conditions are met, PG&E Corporation and the Utility can deduct payments made to the qualified trusts, subject to certain limitations. PG&E Corporations and the Utilitys funding policy is to contribute tax-deductible amounts, consistent with applicable regulatory decisions and federal minimum funding requirements. On an annual basis, the Utility funds the pension plan up to the amount it is authorized to recover through rates. PG&E Corporation and the Utility also sponsor contributory postretirement medical plans for retirees and their eligible dependents, and non-contributory postretirement life insurance plans for eligible employees and retirees. PG&E Corporation and the Utility use a fiscal year-end measurement date for all plans. Change in Plan Assets, Benefit Obligations, and Funded Status The following tables show the reconciliation of changes in plan assets, benefit obligations, and the plans aggregate funded status for pension benefits and other benefits for PG&E Corporation during 2025 and 2024: …

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RELATED PARTY AGREEMENTS AND TRANSACTIONS The Utility and other subsidiaries provide and receive various services to and from their parent, PG&E Corporation, and among themselves. The Utility and PG&E Corporation exchange administrative and professional services in support of operations. Services provided directly to PG&E Corporation by the Utility are priced at the higher of fully loaded cost (i.e., direct cost of good or service and allocation of overhead costs) plus five percent of direct labor costs or fair market value, depending on the nature of the services. Services provided directly to the Utility by PG&E Corporation are priced at the lower of fully loaded cost or fair market value. PG&E Corporation also allocates various corporate administrative and general costs to the Utility and other subsidiaries using agreed-upon allocation factors, including the number of employees, operating and maintenance expenses, total assets, and other cost allocation methodologies. Management believes that the methods used to allocate expenses are reasonable and meet the reporting and accounting requirements of its regulatory agencies.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Regulation and Regulated Operations The Utility follows accounting principles for rate-regulated entities and collects rates from customers to recover revenue requirements that have been authorized by the CPUC or the FERC based on the Utilitys cost of providing service. The Utilitys ability to recover a significant portion of its authorized revenue requirements through rates is generally independent, or decoupled, from the volume of the Utilitys electricity and natural gas sales. The Utility records assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for nonregulated entities. The Utility capitalizes and records as regulatory assets costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered through future rates. Regulatory assets are amortized over the future periods in which the costs are recovered. If costs expected to be incurred in the future are currently being recovered through rates, the Utility records those expected future costs as regulatory liabilities. Amounts that are probable of being credited or refunded to customers in the future are also recorded as regulatory liabilities. The Utility also records a regulatory balancing account asset or liability for differences between customer billings and authorized revenue requirements that are probable of recovery or refund. In addition, the Utility records a regulatory b …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

WILDFIRE-RELATED CONTINGENCIES Liability Overview PG&E Corporation and the Utility have significant contingencies arising from their operations, including contingencies related to wildfires. PG&E Corporation and the Utility record a provision for a loss contingency when they determine that it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. PG&E Corporation and the Utility record a wildfire-related liability when they determine that a loss is probable, and they can reasonably estimate the loss or a range of losses. The provision is based on the lower end of the range, unless an amount within the range is a better estimate than any other amount. Assessing whether a loss is probable or reasonably possible, whether the loss or a range of losses is estimable, and the amount of the accrual often requires management to exercise significant judgment about future events. Management makes these assessments based on a number of assumptions and subjective factors, including negotiations (including those during mediations with claimants), discovery, settlements and payments, rulings, advice of legal counsel, and other information and events pertaining to a particular matter, and estimates based on currently available information and prior experience with wildfires. Unless expressly noted otherwise, the estimated liabilities in this Note reflect the lower end of the range of the reasonably estimable range of losse …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Credit Facilities The following table summarizes PG&E Corporations and the Utilitys outstanding borrowings and availability under their credit facilities as of June 30, 2026: (in millions) Termination Date Maximum Facility Limit Loans Outstanding Letters of Credit Outstanding Facility Availability Utility revolving credit facility June 2031 $ 6,250 (1) $ (1,135) $ (224) $ 4,891 Utility Receivables Securitization Program (2) June 2028 1,750 (3) (1,750) (3) PG&E Corporation revolving credit facility June 2029 650 650 Total credit facilities $ 8,650 $ (2,885) $ (224) $ 5,541 (1) Includes a $2.0 billion letter of credit sublimit. (2) For more information on the Receivables Securitization Program, see Variable Interest Entities in Note 2 above. (3) The amount the Utility may borrow under the Receivables Securitization Program is limited to the lesser of the facility limit and the facility availability. Further, the facility availability may vary based on the amount of accounts receivable that the Utility owns that are eligible for sale to the SPV and the portion of those accounts receivable that are sold to the SPV that are eligible for advances by the lenders under the Receivables Securitization Program. Utility On June 22, 2026, the Utility amended its existing revolving credit agreement to, among other things, (i) extend the maturity date of such agreement to June 20, 2031, (ii) increase the aggregate commitments from $5.4 billion to $6.25 billion and (iii) modify …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Utilitys revenues disaggregated by type of customer: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Electric Revenue from contracts with customers Residential $ 1,784 $ 1,421 $ 3,591 $ 3,255 Commercial 1,736 1,613 3,328 3,119 Industrial 454 386 892 800 Agricultural 490 478 695 677 Public street and highway lighting 27 26 53 53 Other, net (1) 538 665 831 754 Total revenue from contracts with customers - electric 5,029 4,589 9,390 8,658 Regulatory balancing accounts (2) (641) (175) (35) (109) Total electric operating revenue $ 4,388 $ 4,414 $ 9,355 $ 8,549 Natural gas Revenue from contracts with customers Residential $ 355 $ 430 $ 1,835 $ 2,139 Commercial 181 222 549 621 Transportation service only 374 456 864 1,002 Other, net (1) (42) (147) (364) (267) Total revenue from contracts with customers - gas 868 961 2,884 3,495 Regulatory balancing accounts (2) 646 523 544 (163) Total natural gas operating revenue 1,514 1,484 3,428 3,332 Total operating revenues $ 5,902 $ 5,898 $ 12,783 $ 11,881 (1) This activity is primarily related to the change in unbilled revenue and amounts subject to refund, partially offset by other miscellaneous revenue items. (2) These amounts represent alternative revenues authorized to be billed or refunded to customers. …

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FAIR VALUE MEASUREMENTS PG&E Corporation and the Utility measure their cash equivalents, self-insurance assets, trust assets, and price risk management instruments at fair value. A three-tier fair value hierarchy is established that prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Other inputs that are directly or indirectly observable in the marketplace. Level 3 Unobservable inputs which are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility. Fair Value Measurements At June 30, 2026 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 850 $ $ $ $ 850 Self-insurance investments Short-term investments 1,212 1,212 Total Self-insurance investments (2) 1,212 1,212 Nuclear decommissioning trusts Short-term investments 37 37 Global equity securities 2,553 2,553 Fixed-income securities 1,568 1,148 2,716 Assets measured at NAV 29 Total nuclear decommissioning trusts (3) 4,158 1,148 5,335 Customer credit trust Short-term investments 24 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standards Induced Conversions of Convertible Debt Instruments In November 2024, the FASB issued ASU No. 2024-04, DebtDebt with Conversion and Other Options (Subtopic 470-20) : Induced Conversions of Convertible Debt Instruments , which amended the existing guidance by clarifying the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions. Under this ASU, to account for a settlement of a convertible debt instrument as an induced conversion, an inducement offer is required to provide the debt holder with, at a minimum, the consideration (in form and amount) issuable under the conversion privileges provided in the terms of the instrument. An entity should assess whether this criterion is satisfied as of the date the inducement offer is accepted by the holder. This ASU became effective for PG&E Corporation and the Utility on January 1, 2026. The adoption of this ASU did not have an immediate impact and is not expected to have a significant impact in future periods on PG&E Corporation and the Utilitys Condensed Consolidated Financial Statements and related disclosures. Accounting Standards Issued But Not Yet Adopted Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which amended …

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Segment Reporting PG&E Corporation and the Utility assess financial performance and allocate resources on a consolidated basis and operate as one reportable segment. PG&E Corporations and the Utilitys chief operating decision maker (CODM) is the Chief Executive Officer of PG&E Corporation. Net income (loss) is the measure that the CODM uses to assess performance and decide how to allocate resources and that is most consistent with GAAP principles. Net income is reported on PG&E Corporations Condensed Consolidated Statements of Income. Because PG&E Corporation and the Utility are a single reportable segment, all segment financial information can be found in PG&E Corporations Condensed Consolidated Financial Statements. PG&E Corporation and the Utility do not have any significant segment expenses because the CODM is not regularly provided with information that is considered to be significant under Accounting Standards Codification (ASC) 280, Segment Reporting . Except for publicly available information, the information regularly provided to the CODM consists of financial reports with metrics that combine year-to-date actual results with forecasts of the remainder of the year in order to provide a comprehensive view of the entire year. These metrics do not separate expenses already incurred from forecast information. Revenue Recognition Revenue from Contracts with Customers The Utility recognizes revenues whe …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

EQUITY Dividends Subject to the dividend restrictions as described in Notes 6 and 7 of the Notes to the Consolidated Financial Statements in Item 8 of the 2025 Form 10-K, any decision to declare and pay dividends in the future will be made at the discretion of PG&E Corporations and the Utilitys Boards of Directors and will depend on, among other things, results of operations, financial condition, cash requirements, contractual restrictions and other factors that the Boards of Directors may deem relevant. The following table summarizes the dividends paid or declared by PG&E Corporation and the Utility in 2026: Security Amount per Share Aggregate amount (in millions) Date of Declaration Record Date Payment Date PG&E Corporation common stock $ 0.05 $ 110 December 11, 2025 December 31, 2025 January 15, 2026 0.05 111 February 19, 2026 March 31, 2026 April 15, 2026 0.05 111 May 21, 2026 June 30, 2026 July 15, 2026 Utility common stock (1) 625 February 19, 2026 (1) March 30, 2026 (1) 625 May 21, 2026 (1) June 30, 2026 PG&E Corporation mandatory convertible preferred stock 0.75 24 December 11, 2025 February 13, 2026 March 1, 2026 0.75 24 February 19, 2026 May 15, 2026 June 1, 2026 0.75 24 May 21, 2026 August 14, 2026 September 1, 2026 Utility preferred stock varies by series 3.5 December 11, 2025 January 30, 2026 February 15, 2026 varies by series 3.5 February 19, 2026 April 30, 2026 May 15, 2026 varies by series 3.5 May 21, 2026 July 31, 2026 August 15, 2026 (1) PG&a …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing