Recorded GAAP earnings were $0.84 per diluted share for the year and GAAP earnings were $0.24 for the fourth quarter of 2022, compared to losses of $(0.05) per diluted share and earnings of $0.22 per diluted share, respectively, for the same periods in 2021.
Non-GAAP core earnings were $1.10 per diluted share for the year and $0.26 per diluted share for the fourth quarter of 2022, compared to $1.08 (or $1.00 on a fully diluted basis) and $0.28, respectively, per diluted share for the same periods in 2021.
2023 EPS guidance updated for GAAP earnings in the range of $0.98 to $1.13 and reaffirmed for non-GAAP core earnings in the range of $1.19 to $1.23 per share.
No equity issued in 2022; forecasting no equity needs in 2023 through 2024.
Reduced 2022 non-fuel O&M costs by 3%, net of inflation, as compared to 2021; exceeded annual reduction target of 2%.
PG&E Corporation recorded full-year income available for common shareholders of $1,800 million, or $0.84 per diluted share, and fourth-quarter 2022 income available for common shareholders of $513 million, or $0.24 per diluted share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with losses attributable to common shareholders of $(102) million, or $(0.05) per diluted share, for the full year of 2021 and income available for common shareholders of $472 million, or $0.22 per diluted share, for the fourth quarter of 2021.
GAAP results were primarily driven by unrecoverable interest expense and other earnings factors, including allowance for funds used during construction equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. Results are also driven by costs related to the amortization of the Wildfire Fund asset and accretion of the related Wildfire Fund liability, wildfire-related costs, investigation remedies, PG&E Corporation's and Pacific Gas and Electric Company's (Utility) reorganization cases under Chapter 11 of the U.S. Bankruptcy Code (Chapter 11), and strategic repositioning costs, partially offset by Fire Victim Trust tax benefit net of securitization and prior period net regulatory impact.
"PG&E delivered results right on target in 2022, and consistent with our focus on reducing physical and financial risk, building a climate-resilient energy system, and earning the trust of our customers, our regulators, and everyone we work with," said Patti Poppe, CEO of PG&E Corporation. "These focus areas remain true for 2023 as we work to achieve our Triple Bottom Line of serving people, the planet, and California's prosperity."
Non-GAAP Core Earnings
PG&E Corporation's non-GAAP core earnings, which exclude non-core items, were $2,343 million, or $1.10 per diluted share, for the full year of 2022, compared with $2,138 million, or $1.08 per diluted share (or $1.00 on a fully diluted basis), during the same period in 2021. For the fourth quarter of 2022, non-GAAP core earnings were $560 million, or $0.26 per diluted share, compared with $596 million, or $0.28 per diluted share, during the same period in 2021.
The decrease in quarter-over-quarter non-GAAP core earnings per diluted share was primarily driven by redeployment and other miscellaneous items, offset by cost reductions and growth in rate base earnings.
Non-core items, which management does not consider representative of ongoing earnings, totaled $543 million after tax, or $0.25 per diluted share, for the year and $47 million after tax, or $0.02 per diluted share, in the fourth quarter of 2022, compared with $2.2 billion after tax, or $1.13 per diluted share, and $124 million after tax, or $0.06 per diluted share, respectively, for the same periods in 2021.
PG&E Corporation uses "non-GAAP core earnings," which is a non-GAAP financial measure, in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items. See the accompanying tables for a reconciliation of non-GAAP core earnings to consolidated earnings (loss) attributable to common shareholders.
2023 Guidance
PG&E Corporation is updating 2023 GAAP earnings guidance in the range of $0.98 to $1.13 per diluted share. Factors driving GAAP earnings include costs related to unrecoverable interest expense of $370 million to $430 million after tax and other earnings factors, including allowance for funds used during construction equity, incentive revenues, tax benefits, and cost savings, net of below-the-line costs. Additional factors include the amortization of the Wildfire Fund asset and accretion of the related Wildfire Fund liability, investigation remedies, wildfire-related costs, and PG&E Corporation's and the Utility's reorganization cases under Chapter 11, partially offset by Fire Victim Trust tax benefits and prior period net regulatory impact.
The guidance range for projected 2023 non-GAAP core earnings is reaffirmed at $1.19 to $1.23 per diluted share. The guidance range for non-core items, which management does not consider representative of ongoing earnings, is updated to $210 million to $440 million after tax.
Guidance is based on various assumptions and forecasts, including those relating to authorized revenues, future expenses, capital expenditures, rate base, equity issuances, and certain other factors.
Supplemental Financial Information
In addition to the financial information accompanying this release, presentation slides have been furnished to the Securities and Exchange Commission (SEC) and are available on PG&E Corporation's website at: http://investor.pgecorp.com/financials/quarterly-earnings-reports/default.aspx.
