01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
PG&E Corporation and Pacific Gas and Electric Company filed a combined Form 10-Q for the quarter ended March 31, 2026.
Consolidated income available to common shareholders was $858 milliona, compared with $607 million a year earlier, and diluted EPS was $0.39 versus $0.28. The Utility's operating revenues rose $898 million, or 15%, to $6,881 million, driven mainly by approximately $620 million of revenue authorized in the 2023 WMCE final decision, while operating and maintenance expense rose $466 million, including about $400 million of previously deferred costs recognized under that decision. Interest expense increased $62 million to $717 million, reflecting additional long-term debt.
Liquidity and wildfire exposure remain the central investor concerns. The company had about $6.3 billionb of total liquidity as of March 31, 2026, including $5.2 billion of revolver availability. Liabilities recorded for the 2019 Kincade fire ($1.325 billion), 2021 Dixie fire ($2.15 billion) and 2022 Mosquito fire ($400 million) are stated before available recoveries, and the filing notes that recorded liabilities for Kincade and Dixie have exceeded potential insurance recoveries.
The Utility has an aggregate Wildfire Fund receivable of $1.150 billionc for the Dixie fire, of which $892 million had been received. The Utility estimates $12.4 billion of 2026 capital expenditures, and the 2023 WMCE decision authorized $1.9 billion of costs, which is under rehearing application. Regulatory developments include the CPUC's February 2026 final decision in the 2023 WMCE proceeding, the NRC's April 2026 approval of a 20-year license renewal for Diablo Canyon, and an OEIS 2025 safety certificate issued in March 2026.
A Wildfire Fund administrator study under SB 254 was issued April 7, 2026. The filing also reports that the company accelerated amortization of its Wildfire Fund asset following SCE's Eaton fire disclosures, with Wildfire Fund expense of $102 milliond in the quarter.
02—Key points
Key Highlights
- Income available to common shareholders was $858 million ($0.39 diluted EPS) for Q1 2026, up from $607 million ($0.28) in Q1 2025.
- Utility operating revenues increased $898 million (15%) to $6,881 million, including about $620 million authorized under the 2023 WMCE final decision.
- Total liquidity was about $6.3 billion as of March 31, 2026, including $5.2 billion of revolving credit facility availability.
- Recorded wildfire liabilities total $1.325 billion (Kincade), $2.15 billion (Dixie) and $400 million (Mosquito) before available recoveries; cumulative payments through March 31, 2026 were $3.496 billion.
- The Utility filed a 2019 Kincade/2021 Dixie AB 1054 cost recovery application seeking about $1.9 billion of recovery; a proposed decision is expected by November 2026.
- The Utility expects to invest $12.4 billion in capital expenditures in 2026; Q1 capital expenditures were $3,356 million.
- PG&E Corporation does not expect to undertake any equity issuances through 2030.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.88B$5.98B | +15.0% |
| Operating Income | $1.47B$1.22B | +20.5% |
| Net Income | $885.00M$634.00M | +39.6% |
| EPS (Basic) | $0.39$0.28 | +39.3% |
| EPS (Diluted) | $0.39$0.28 | +39.3% |
| Shares Outstanding (Basic) | 2.20B2.19B | +0.2% |
| Shares Outstanding (Diluted) | 2.28B2.20B | +3.7% |
05—Questions
Frequently Asked Questions
Why did net income rise so sharply this quarter?
The increase was driven primarily by about $620 million of revenue authorized in the 2023 WMCE final decision, which had no comparable amount in Q1 2025, partly offset by about $400 million of recognized previously deferred expenses under the same decision. Interest expense also rose $62 million, and the income tax provision fell $22 million.
What is the status of the wildfire cost recovery proceedings?
The CPUC issued a final decision in the 2023 WMCE proceeding on February 5, 2026, authorizing $1.9 billion of costs, and the Utility filed for rehearing on March 16, 2026. The 2024 WMCE application ($596 million) was filed in November 2024. The 2023 WGSC application's statutory deadline was extended to October 30, 2026. The Kincade and Dixie AB 1054 application was filed November 2025, with a proposed decision expected by November 2026.
How much wildfire recovery is available and how much has been received?
For the 2021 Dixie fire, probable recoveries total $2.307 billion, including $521 million of insurance, $97 million through FERC TO rates, $539 million through WEMA and a $1.150 billion Wildfire Fund receivable, of which $892 million had been received. For the 2022 Mosquito fire, probable recoveries total $477 million, including $416 million of insurance. The Utility has been self-insuring liability up to $1.0 billion since August 2023.
What did the company say about future financing?
PG&E Corporation and the Utility expect to meet cash requirements in the short and long term, primarily through capital and credit markets. As of March 31, 2026, the Utility had $4.534 billion of available revolver capacity and PG&E Corporation's revolver had $650 million of availability. The Utility's CPUC-authorized capital structure is 52% common equity, 47.5% long-term debt and 0.5% preferred equity.
What are the key risks flagged by the filing?
The filing highlights uncertainty over wildfire liabilities that could exceed insurance and Wildfire Fund recoveries, the CPUC's application of the revised AB 1054 prudency standard, the timing of ratemaking decisions (including delayed GRC decisions), dependence on California legislative action on wildfire matters, and the Utility's below-investment-grade unsecured credit rating, which can increase collateral posting requirements.
06—Continue