Priced for Negative GRC Recommendations

Research evidence excerpt

Priced for Negative GRC Recommendations

Global Research

6 July 2026ab

First Read

EquitiesPG&E Corp

Priced for Negative GRC Recommendations United States

Electric Utilities

12-month rating Buy

What’s Our Take?

Parties to PCG’s California rate case filed briefs summarizing positions on 7/2. Key 12m price target US$22.00

intervenor California Public Advocate’s recommendation focuses more on expense

items while TURN’s brief has capital outlays more at issue. Affordability and

Price (02 Jul 2026) US$17.05

accountability are central issues for PCG and intervenors and the company make a

compelling case that combined electric and gas bills will increase 1% on average RIC: PCG.N BBG: PCG US

annually for 2025 to 2029. Absent a settlement a proposed decision in early 2027 is Trading data and key metrics

likely the next rate case milestone that could reduce PCG’s 50% discount P/E to the

52-wk range US$19.11-13.00

Utility Group or 9.5x our $1.95 in 2028E.

Market cap. US$37.5b

Shares o/s 2,198m (COM)

What Happened?

Free float 100%

From a revenue basis PCG’s test year 2027 proposal is a $885 mln revenue increase

Avg. daily volume ('000) 5,963

versus a $181 mln reduction for Cal PA and approval of more than one-half of the

increase from TURN. The $885 mln reflects removal of SB 410 and AB 841 costs Avg. daily value (m) US$100

from the $1199 mln proposed overall amount. Common s/h equity (12/26E) US$35.8b

P/BV (12/26E) 1.0x

Precedent. EIX received 62% of the revenue increase request in its case decided in Net debt to EBITDA (12/26E) 5.7x

9/2025. PCG received 33% of the revenue increase request in the 2023 case. We

expect improvement from these outcomes based on the critical investment and EPS (UBS, diluted) (USD)

affordability offered by PCG’s proposal. 12/26E

UBS Cons.