PG&E Corp. (NYSE: PCG) reported Q1 EPS of $0.89, $0.13 worse than the analyst estimate of $1.02. Revenue for the quarter came in at $4.31 billion versus the consensus estimate of $5.09 billion.

• Recorded GAAP earnings were $0.57 per share for the first quarter of 2020, compared to earnings of $0.25 per share for the same period in 2019.
• Non-GAAP core earnings were $0.89 per share for the first quarter of 2020, compared to $1.04 per share for the same period in 2019.

“We have developed a Plan of Reorganization that has the support of a broad coalition of stakeholders, including the Governor’s Office. Our Plan compensates wildfire victims fairly, resolves our liabilities, assumes the collective bargaining agreements with our labor unions and is energy-bill-neutral for our customers. It will protect our clean energy commitments and set us up to emerge from Chapter 11 as a stronger and more sustainable utility,” said Bill Johnson, CEO and President of PG&E Corporation.

Johnson previously announced his decision to retire from the company effective June 30, 2020. PG&E Corporation has named William “Bill” Smith as Interim CEO. Smith, who joined the Boards of Directors of PG&E Corporation and the Utility (the “Boards”) in 2019, will serve in this role from the time of Johnson’s departure through the appointment of a new CEO.

“I am quite proud of what PG&E and our 23,000 employees have achieved in the past year,” Johnson said. “We are close to emerging from bankruptcy. We’ve stabilized our operations, made significant structural and governance improvements across the business, and continued our work to reduce the risk of wildfire in our communities. I look forward to working with Bill Smith on an orderly transition in the near term. I have every confidence that PG&E will succeed and fulfill its mission to our customers for years to come."

Chapter 11 Progress

In March, PG&E agreed to a series of commitments recommended by Governor Newsom's office and California Public Utilities Commission (CPUC) President Batjer regarding its governance, operations, and financial structure—all designed to further prioritize safety and expedite the company's successful emergence from Chapter 11. The full list of recommendations is available here.

In other developments:

• The Utility received a proposed decision from the CPUC in its Plan of Reorganization OII, which affirms that the company’s Plan of Reorganization is compliant with Assembly Bill 1054, and supports a waiver of the regulatory capital structure.
• PG&E Corporation and Pacific Gas and Electric Company have sent voting materials to approximately 250,000 parties entitled to vote on the Plan of Reorganization. Completed ballots must be received by May 15, 2020 to be counted.
• The Utility resolved the criminal investigation in Butte County, by entering into a plea agreement, under which the Utility will plead guilty to 84 counts of involuntary manslaughter and one count of unlawfully starting a fire stemming from the 2018 Camp Fire, as well as pay $4 million in associated fines and expenses.

COVID-19 Considerations

PG&E is taking steps to protect the health and safety of its customers and employees in response to the COVID-19 pandemic.

PG&E understands that many customers are facing severe economic challenges because of this crisis. In consideration, the company is offering flexible payment plans, waiving security deposits, and suspending service disconnections for non-payment.

Under the California-wide shelter-at-home mandate, PG&E is continuing to focus on critical and essential work—including the elements of its Wildfire Mitigation Plan designed to reduce the risk of catastrophic wildfire and minimize Public Safety Power Shutoff impacts.

PG&E does not anticipate disruption to power supply and delivery due to COVID-19. PG&E has filed a notice with the CPUC that it is recording costs associated with COVID-19 in a memorandum account and may seek recovery at a future date.

2020 Guidance

PG&E Corporation is not providing guidance for 2020 GAAP earnings or non-GAAP core earnings. However, the company is providing factors affecting 2020 non-GAAP core earnings and guidance for non-core items.

These include a range of drivers causing a variance in earnings below authorized, including net below the line and spend above authorized of $150 million to $200 million after tax and unrecovered interest expense of $100 million to $150 million after tax. PG&E Corporation is providing 2020 non-core items guidance of approximately $2.1 billion to $2.3 billion after-tax for bankruptcy and legal costs, wildfire insurance fund contributions, investigation remedies and delayed cost recovery, and the 2011 GT&S capital audit.

Both the drivers and non-core items guidance are based on various assumptions and forecasts related to future expenses and certain other factors.

For earnings history and earnings-related data on PG&E Corp. (PCG) click here.