PG&E Raises Earnings Forecast Amidst Rate Hikes and Customer Growth
San Francisco, California - PG&E Corp. has revised its adjusted core earnings projections for 2025, citing reduced operating costs and increased electricity prices.
Last month, the California Public Utilities Commission approved PG&E's request for a further increase in electricity prices, following a series of similar approvals in 2023. The utility reported a 10.5% rate base growth in 2024.
Electric utilities across the United States are advocating for additional price adjustments due to rising energy demands from data centers, manufacturers, and other industries. PG&E alone added approximately 14,000 new customers to its electric grid in 2024.
"We connected more new customers to our grid in 2024 than we have in decades," said PG&E CEO Patti Poppe. Since July 2023, the company has witnessed a 2-gigawatt expansion in its data center pipeline.
PG&E serves 16 million Californians across a service area spanning 70,000 square miles in Northern and Central California. The company has upgraded its full-year guidance for adjusted core earnings to a range of $1.48 to $1.52 per share, up from its previous estimate of $1.47 to $1.51.
Analysts project earnings per share of $1.49, as per data from LSEG. In 2024, PG&E lowered its operating expenses by 8.3% to $19.96 billion compared to the previous year. The company reported an adjusted core profit of 31 cents per share in the fourth quarter, aligning with analyst expectations. PG&E shares experienced a 1% gain in premarket trading.