PG&E Corporation Raises Common Stock Dividend, Highlights Progress at Annual Shareholder Meeting

SAN FRANCISCO--(BUSINESS WIRE)-- PG&E Corporation (NYSE: PCG) today announced that it is raising its quarterly common stock dividend to 49 cents per share, an increase of 3.5 cents per share, beginning with dividends for the second quarter of 2016.

On an annual basis, this action increases PG&E Corporation’s annual stock dividend by nearly 8 percent, from $1.82 per share to $1.96 per share. PG&E Corporation is targeting a payout ratio of 55 percent to 65 percent, with the intent of reaching approximately 60 percent by 2019.

The increase, which is the company’s first in six years, is a meaningful step toward gradually returning the company’s dividend payout to levels that are comparable with those of similar utilities.

“Providing a dividend that is comparable to other utilities is critical to support continued investment in California’s energy future. It allows PG&E to more efficiently and affordably compete for capital to fund the major investments in safety, reliability and clean energy that our customers count on us to make. We are pleased that our focus on operational excellence has positioned us to deliver strong returns through a combination of rate base driven earnings growth and sustained common dividend increases over the next several years,” said PG&E Corporation Chairman, CEO and President Tony Earley.

For 2016, PG&E Corporation has forecasted total capital investments of about $5.6 billion, funding continued enhancements in the company’s gas and electric systems. For example:

• To improve safety, PG&E will continue conducting hydrostatic tests of gas pipelines, replacing pipelines as needed, and monitoring and inspecting its gas system using state-of-the art technologies.
• PG&E will continue to modernize its electric grid, making it smarter and more resilient and building on its string of seven straight years of record reliability for customers.
• In addition, smart-grid investments will enable the grid to accommodate more large-scale renewable power and smaller-scale distributed generation, such as private rooftop solar, helping California achieve its goals on clean energy and carbon reduction.

The company highlighted these plans and the dividend increase this morning at its annual shareholder meeting in San Francisco. Earley and other senior executives also discussed continued progress on safety, reliability and other goals, as well as PG&E’s strategy for the future.

Earley said, “We’ve continued to demonstrate leadership and commitment on safety. We’re delivering the most reliable service in our company’s history. Our customers’ bills remain below the national average. And the energy we’re providing is among the cleanest in the country. All of this positions PG&E very well.”

Noting California’s place at the forefront of change in the energy sector, he added: “These changes present a tremendous opportunity for PG&E to lead the way on clean energy, to create new value for customers, and to establish PG&E at the center of a sustainable energy future.”

The annual meeting of shareholders concluded with a report on the preliminary results of the shareholder vote on the items of business. Preliminary voting results indicate that all members of the boards of directors of PG&E Corporation and Pacific Gas and Electric Company will be re-elected for a one-year term; the re-appointment of the companies’ independent registered public accounting firm, Deloitte & Touche LLP, will be ratified; and the companies’ executive compensation will be approved on an advisory basis. Final voting results will be reported in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission and will be available on the companies’ websites.

Dividend Record Dates

PG&E Corporation’s second quarter common stock dividend of $0.49 per share is payable on July 15, 2016, to shareholders of record on June 30, 2016.

In addition, effective May 23, 2016, the Board of Directors of the Utility declared the regular preferred stock dividend for the three-month period ending July 31, 2016, payable on August 15, 2016, to shareholders of record on July 29, 2016. The Utility will pay dividends on its eight series of preferred stock as follows:

In order to be considered a shareholder of record for the common or preferred dividend payment, a shareholder must have purchased the stock at least three trading days before the applicable record date.

Forward-Looking Statements

This press release contains forward-looking statements regarding PG&E Corporation’s and the Utility’s target to reach a payout ratio of approximately 60 percent by 2019 and PG&E Corporation’s forecasted total capital investments of about $5.6 billion for 2016, that are based on current expectations and assumptions, including anticipated future capital expenditures and cash flows of PG&E Corporation and the Utility, 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, other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include: whether actual costs are higher than forecasted; changes in the scope and timing of capital projects included within the forecasts; the outcome of the Utility’s 2015 Gas Transmission and Storage rate case and other rate cases; the outcome of the federal criminal prosecution of the Utility; the outcome of the Butte fire litigation, and whether the Utility’s insurance is sufficient to cover the Utility’s liability resulting therefrom, whether insurance is otherwise available, and whether additional investigations and proceedings will be opened; the outcome of the California Public Utilities Commission’s pending orders instituting investigation; the ability of PG&E Corporation and the Utility to access capital markets and other sources of debt and equity financing in a timely manner on acceptable terms; the outcome of federal or state tax audits and the impact of any changes in federal or state tax laws, policies, regulations, or interpretations; the timing and amount of tax payments and refunds; the timing and amount of insurance payments; and the other factors disclosed in PG&E Corporation and the Utility’s joint Annual Report on Form 10-K for the year ended December 31, 2015 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2016.

About PG&E Corporation

PG&E Corporation (NYSE: PCG) is a Fortune 200 energy-based holding company, headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, California's largest investor-owned utility. PG&E serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. For more information, visit www.pgecorp.com.

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PG&E Corporation
Andrew Castagnola, 415-973-5930

Source: PG&E Corporation

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