Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 195

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 195
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 shares outstanding, basic.  PG&E Corporation’s diluted EPS is calculated by dividing the income available for common shareholders, diluted, by the weighted average number of common shares outstanding, diluted.  PG&E Corporation applies the treasury stock method of reflecting the dilutive effect of outstanding share-based compensation in the calculation of diluted EPS.  The following is a reconciliation of PG&E Corporation’s income available for common shareholders and weighted average common shares outstanding for calculating diluted EPS:Three Months Ended September 30,Nine Months Ended September 30,(in millions, except per share amounts)2025202420252024Numerator:Income available for common shareholders, basic$823 $576 $1,951 $1,828 Mandatory Convertible Preferred Stock dividends24 — — — Income available for common shareholders, diluted$847 $576 $1,951 $1,828 Denominator:Weighted average common shares outstanding, basic(1)2,198 2,137 2,197 2,136 Dilutive effect of Employee stock-based compensation5 6 5 6 Dilutive effect of Mandatory Convertible Preferred Stock78 — — — Weighted average common shares outstanding, diluted2,281 2,143 2,202 2,142 Total income per common share:Basic$0.37 $0.27 $0.89 $0.86 Diluted$0.37 $0.27 $0.89 $0.85 (1) Excludes 477,743,590 shares of PG&E Corporation common stock held by the Utility.For each of the periods presented above, the calculation of outstanding common shares on a diluted basis excluded an insignificant amount of options and securities that were antidilutive.  For the nine months ended September 30, 2025, the calculation of outstanding common shares on a diluted basis excluded the impacts of the mandatory convertible preferred stock, which was antidilutive.

NOTE 8: DERIVATIVES

Use of Derivative InstrumentsThe Utility is exposed to commodity price risk as a result of its electricity and natural gas procurement activities.  Procurement costs are recovered through rates.  The Utility uses both derivative and non-derivative contracts to manage volatility in customer rates due to fluctuating commodity prices.  Derivatives include contracts, such as power purchase agreements, forwards, futures, swaps, options, and CRRs that are traded