All amounts presented in the table above and footnotes below are tax adjusted at PG&E Corporation’s statutory tax rate of 27.98% for 2021 and 2020, except for certain costs that are not tax deductible. Amounts may not sum due to rounding. Reflects 2,128 million and 1,985 million weighted average shares during the three and twelve months ended December 31, 2021, respectively.

“Non-core items” include items that management does not consider representative of ongoing earnings and affect comparability of financial results between periods, consisting of the items listed in the table above. See Exhibit H: Use of Non-GAAP Financial Measures.

The Utility recorded costs of $118 million (before the tax impact of $33 million) and $517 million (before the tax impact of $145 million) during the three and twelve months ended December 31, 2021, respectively, associated with the amortization of Wildfire Fund contributions related to Assembly Bill (“AB”) 1054.

PG&E Corporation and the Utility recorded costs of $50 million (before the tax impact of $16 million) and $1.5 billion (before the tax impact of $55 million) during the three and twelve months ended December 31, 2021, respectively, for bankruptcy and legal costs associated with PG&E Corporation and the Utility’s Chapter 11 filing. The Utility incurred $32 million (before the tax impact of $9 million) and $135 million (before the tax impact of $38 million) during the three and twelve months ended December 31, 2021, respectively, related to exit financing costs. PG&E Corporation and the Utility also incurred legal and other costs of $18 million (before the tax impact of $7 million) and $63 million (before the tax impact of $17 million) during the three and twelve months ended December 31, 2021, respectively. The Utility also recorded a $1.3 billion adjustment for the grantor trust election related to the Fire Victim Trust during the twelve months ended December 31, 2021.

The Utility incurred costs, net of probable insurance recoveries, of $6 million (before the tax impact of $2 million) and $202 million (before the tax impact of $57 million) during the three and twelve months ended December 31, 2021, respectively, associated with the 2019-2020 wildfires. This includes costs of $5 million (before the tax impact of $1 million) and $18 million (before the tax impact of $5 million) during the three and twelve months ended December 31, 2021, respectively, for legal and other costs related to the 2019 Kincade fire, as well as $7 million (before the tax impact of $2 million) and $21 million (before the tax impact of $6 million) during the three and twelve months ended December 31, 2021, respectively, for legal and other costs related to the 2020 Zogg fire. In addition, the Utility accrued charges for third-party claims of $175 million (before the tax impact of $49 million) during the twelve months ended December 31, 2021, related to the 2019 Kincade fire, and $100 million (before the tax impact of $28 million) during the twelve months ended December 31, 2021, related to the 2020 Zogg fire. In addition, the Utility also incurred costs of $1 million (before the tax impact of $0.2 million) during the twelve months ended December 31, 2021 for clean-up and repair costs related to the 2019 Kincade fire, and $5 million (before the tax impact of $2 million) during the twelve months ended December 31, 2021 for clean-up and repair costs related to the 2020 Zogg fire. These costs were partially offset by probable insurance recoveries of $6 million (before the tax impact of $2 million) and $118 million (before the tax impact of $33 million) during the three and twelve months ended December 31, 2021, respectively, related to the 2020 Zogg fire.

The Utility recorded a net benefit of $0.3 million (before the tax detriment of $1 million) and incurred costs of $171 million (before the tax impact of $23 million) during the three and twelve months ended December 31, 2021, respectively, associated with investigation remedies. The Utility recorded $5 million (before the tax impact of $1 million) and $74 million (before the tax impact of $18 million) during the three and twelve months ended December 31, 2021, respectively, related to the California Public Utilities Commission’s (“CPUC”) Order Instituting Investigation (“OII”) into the 2017 Northern California Wildfires and 2018 Camp Fire (the “Wildfires OII”) settlement, as modified by the decision different dated April 20, 2020. The Utility also recorded a reduction of $6 million (before the tax detriment of $2 million) and incurred costs of $12 million (before the tax impact of $3 million) during the three and twelve months ended December 31, 2021, respectively, for restoration and rebuild costs associated with the town of Paradise (“2018 Camp Fire”). The Utility also recorded a $40 million charge during the twelve months ended December 31, 2021, in connection with a settlement agreement with the Safety and Enforcement Division’s investigation into the 2019 Kincade fire. The Utility also recorded costs of $0.5 million (before the tax impact of $0.1 million) $25 million (before the tax impact of $0.4 million) during the three and twelve months ended December 31, 2021, for system enhancements related to the locate and mark OII. The Utility also recorded an incremental charge of $20 million (before the tax impact of $1 million) during the twelve months ended December 31, 2021 associated with the May 26, 2021 Presiding Officer’s Decision (“POD”) for the Public Safety Power Shutoff (“PSPS”) Order to Show Cause for the Fall 2019 PSPS events.

The Utility incurred $257 million (before the tax impact of $95 million) during the twelve months ended December 31, 2021, associated with prior period net regulatory recoveries. This includes $135 million (before the tax impact of $61 million) during the twelve months ended December 31, 2021 related to wildfire response and mitigation regulatory matters, including the 2020 Wildfire Mitigation and Catastrophic Events application settlement. The Utility also recorded a $122 million (before the tax impact of $34 million) adjustment during the twelve months ended December 31, 2021 reflecting the impact of the April 15, 2021 FERC order denying the Utility’s request for rehearing on the Transmission Owner (“TO”) 18, which rejected the Utility’s direct assignment of common plant to FERC, and impacted TO revenues recorded through December 31, 2020.

“Non-GAAP core earnings” is a non-GAAP financial measure. See Exhibit H: Use of Non-GAAP Financial Measures.

All amounts presented in the table above and footnotes below are tax adjusted at PG&E Corporation’s statutory tax rate of 27.98% for 2022, except for certain costs that are not tax deductible. Amounts may not sum due to rounding.

“Non-core items” include items that management does not consider representative of ongoing earnings and affect comparability of financial results between periods. See Exhibit H: Use of Non-GAAP Financial Measures.

“Amortization of Wildfire Fund contribution” represents the amortization of Wildfire Fund contributions related to AB1054. The total offsetting tax impact for the low and high non-core guidance range is $132 million.

“Bankruptcy and legal costs” consists of exit financing costs including interest on temporary Utility debt and write-off of unamortized fees related to the retirement of PG&E Corporation debt, and legal and other costs associated with PG&E Corporation and the Utility’s Chapter 11 filing. The total offsetting tax impact for the low and high non-core guidance range is $78 million and $31 million, respectively.

“Investigation remedies” includes costs related to the 2019 Kincade fire settlement with the Safety and Enforcement Division approved by the CPUC on December 2, 2021, the Wildfires OII decision different, Paradise restoration and rebuild, and the locate and mark OII system enhancements. The total offsetting tax impact for the low and high non-core guidance range is $28 million.

“2019-2020 wildfire-related costs” includes legal and other costs associated with the 2019 Kincade fire. The total offsetting tax impact for the low and high non-core guidance range is $17 million and $4 million, respectively.

“Rate neutral securitization and Fire Victim Trust tax benefit” includes the impact of post-emergence securitization and tax benefits related to Fire Victim Trust. Impacts of the post-emergence rate neutral securitization include the establishment of a securitization regulatory asset and an offsetting regulatory liability associated with revenue credits funded by up-front shareholder contributions and Net Operation Loss monetization. Fire Victim Trust tax benefits include tax benefits recognized upon the sale of PG&E shares by the Fire Victim Trust, which PG&E has elected to treat as a grantor trust. The low and high cases reflect the assumption that the CPUC’s final decision, issued on May 11, 2021, authorizing the securitization of $7.5 billion of wildfire-related claims, will become final and non-appealable in 2022. The low case includes tax benefits of the Fire Victim Trust shares sold as of February 9, 2022 and the high case reflects an assumption that the Fire Victim trust sells all 477 million shares in 2022. The total offsetting tax impact for the low and high non-core guidance range is $96 million and $2.1 billion, respectively.