Announcement Marks Another Milestone on PG&E's Journey to Becoming a Safe, Financially Healthy and Stable Utility
OAKLAND, Calif., Nov. 28, 2023 /PRNewswire/ -- PG&E Corporation (NYSE: PCG) today announced the company is declaring a cash dividend on its common stock for the first time since 2017. Reinstating the common dividend reflects Pacific Gas and Electric Company's (PG&E's) substantial progress in becoming a safe and stable utility that can now attract more long-term investors. The reinstatement of the common stock dividend does not impact customer rates or bills.
Declaring a dividend enables PG&E Corporation to attract new sources of capital from the financial markets, which are critical to funding PG&E's safety and reliability infrastructure work. Expanding PG&E's investment appeal opens up access to lower-cost, stable financing, which translates into more affordable customer rates in the long term.
"I'm very proud of the progress PG&E has made reducing operating risk and financial risk. We have reduced wildfire risk from our equipment by 94%i, and today we operate one of the safest gas utility systems in America. These safety improvements are core to our becoming a stable and financially healthy utility," said PG&E Corporation CEO Patti Poppe.
"Since 2017, we have reinvested the vast majority of our earnings back into our system and will continue to do so. Our earnings have gone directly into infrastructure projects focused on improving safety and reliability for our customers. We're committed to continuing to build a safe, reliable energy system for the hometowns we're privileged to serve, as well as offering investors a stable long-term investment option," Poppe continued.
Details on the Common Stock Dividend
PG&E Corporation declared a regular quarterly cash dividend on its common stock of $0.01 per share. The dividend is payable on January 15, 2024, to shareholders of record as of December 29, 2023. Moving forward, PG&E Corporation expects to pay a common stock dividend to shareholders every quarter from its net income.
The significant majority of PG&E Corporation's Non-GAAP Core Earnings will still be invested back into the safety and reliability of PG&E's energy system.
The terms of PG&E's emergence from bankruptcy in July 2020 required that PG&E Corporation not pay a common stock dividend until the company had recognized $6.2 billion in Non-GAAP Core Earnings as described in the Plan of Reorganization. This eligibility threshold was passed with PG&E Corporation's third quarter earnings as filed in our Quarterly Report on Form 10-Q on October 26, 2023.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company headquartered in Oakland, California. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. For more information, visit http://www.pgecorp.com.
This news release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans, and strategies of PG&E Corporation and the Utility, including but not limited to dividends and the cost of financings. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in PG&E Corporation and the Utility's joint Annual Report on Form 10-K for the year ended December 31, 2022, their most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, and other reports filed with the SEC, which are available on PG&E Corporation's website at www.pgecorp.com and on the SEC's website at www.sec.gov. PG&E Corporation and the Utility undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.
i Based on the methodology established by the CPUC in the Safety Model Assessment Proceeding and implemented by PG&E, accordingly.
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SOURCE PG&E Corporation