Pacific Gas & Electric Co. ((PCG)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Pacific Gas & Electric Co. (PG&E) recently held its earnings call, which revealed a strong performance marked by improvements in earnings guidance and significant achievements in wildfire risk mitigation. The company also made progress in cost reductions. However, concerns were raised about attrition in the data center pipeline and pending regulatory decisions that could impact future earnings.
Improved Earnings Guidance
PG&E reported core earnings per share of $0.50 for the third quarter and $1.14 for the first nine months of 2025. The company narrowed its full-year guidance to a range of $1.49 to $1.51, reflecting an expected 10% increase over 2024. This positive outlook underscores PG&E’s strong financial performance and strategic focus on growth.
Significant Undergrounding Milestone
In a bid to enhance safety and reduce wildfire risks, PG&E has successfully constructed and energized 1,000 miles of power lines underground in high-risk fire areas. This initiative has led to a 25% reduction in costs since its inception, marking a significant milestone in the company’s infrastructure development efforts.
Wildfire Risk Mitigation Success
PG&E’s efforts in wildfire risk mitigation have yielded impressive results, with a reported 35% reduction in CPUC reportable ignitions compared to 2024. The company is on track to achieve a third consecutive year of zero structures destroyed due to reportable fires in high-risk areas, highlighting its commitment to safety and environmental responsibility.
Robust Data Center Pipeline
The company boasts a strong data center pipeline with over 9.5 gigawatts, primarily supporting AI models in Silicon Valley. This growth in the data center sector underscores PG&E’s strategic positioning in the evolving energy landscape.
O&M Cost Reductions
PG&E has achieved significant O&M cost savings, contributing $0.05 for the third quarter and $0.08 year-to-date. These savings have exceeded the 2% reduction target for three consecutive years, demonstrating the company’s operational efficiency and commitment to cost management.
Data Center Pipeline Attrition
Despite a strong pipeline, PG&E reported modest net attrition in the data center application and preliminary engineering phase since June. However, projects in the final engineering phase continue to advance, indicating resilience in this sector.
Pending Cost of Capital Decision
PG&E is awaiting a proposed decision on its cost of capital application, expected in November. This decision could significantly impact the company’s financial outcomes, adding an element of uncertainty to its future financial landscape.
Forward-Looking Guidance
Looking ahead, PG&E introduced a 2026 EPS guidance range of $1.62 to $1.66, representing a 9% increase from the 2025 midpoint. The company’s 5-year capital plan through 2030 includes a $73 billion investment, supporting an average annual rate base growth of 9%. Notably, no new equity financing is required through 2030. PG&E also aims to maintain or lower customer bills by 2027 through operational efficiency and load growth initiatives.
In conclusion, PG&E’s earnings call highlighted a robust performance with positive earnings guidance and significant operational achievements. While challenges remain, particularly in the data center pipeline and regulatory decisions, the company’s strategic initiatives and forward-looking guidance suggest a promising outlook for investors and stakeholders.