PG&E CORPORATION

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF PARENT

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

		Years Ended December 31,
(in millions, except per share amounts)		2016		2015		2014
Administrative service revenue	$	70	$	51	$	51
Operating expenses		(73)		(53)		(53)
Interest income		1		1		1
Interest expense		(10)		(10)		(14)
Other income (expense)		2		30		(1)
Equity in earnings of subsidiaries		1,388		852		1,413
Income before income taxes		1,378		871		1,397
Income tax benefit		15		3		39
Net income	$	1,393	$	874	$	1,436
Other Comprehensive Income
Pension and other postretirement benefit plans obligations (net of taxes of $1,
$0, and $10, at respective dates)	$	(2)	$	(1)	$	(14)
Net change in investments (net of taxes of $0, $12, and $17, at respective dates)		-		(17)		(25)
Total other comprehensive income (loss)		(2)		(18)		(39)
Comprehensive Income	$	1,391	$	856	$	1,397
Weighted Average Common Shares Outstanding, Basic		499		484		468
Weighted Average Common Shares Outstanding, Diluted		501		487		470
Net earnings per common share, basic	$	2.79	$	1.81	$	3.07
Net earnings per common share, diluted	$	2.78	$	1.79	$	3.06

PG&E CORPORATION

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF PARENT – (Continued)

CONDENSED BALANCE SHEETS

	Balance at December 31,
(in millions)	2016		2015
ASSETS
Current Assets
Cash and cash equivalents	$	106		$	64
Advances to affiliates		24			22
Income taxes receivable		25			24
Other		-			1
Total current assets		155			111
Noncurrent Assets
Equipment		2			2
Accumulated depreciation		(2)			(2)
Net equipment		-			-
Investments in subsidiaries		18,172			16,837
Other investments		133			130
Deferred income taxes		267			250
Total noncurrent assets		18,572			17,217
Total Assets	$	18,727		$	17,328

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable – other		7			3
Other		274			246
Total current liabilities		281			249
Noncurrent Liabilities
Long-term debt		348			348
Other		158			155
Total noncurrent liabilities		506			503
Common Shareholders’ Equity
Common stock		12,198			11,282
Reinvested earnings		5,751			5,301
Accumulated other comprehensive income (loss)		(9)			(7)
Total common shareholders’ equity		17,940			16,576
Total Liabilities and Shareholders’ Equity	$	18,727		$	17,328

PG&E CORPORATION

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT – (Continued)

CONDENSED STATEMENTS OF CASH FLOWS

(in millions)

	Year ended December 31,
	2016		2015		2014
Cash Flows from Operating Activities:
Net income	$	1,393	$	874	$	1,436
Adjustments to reconcile net income to net cash provided by
operating activities:
Stock-based compensation amortization		74		66		65
Equity in earnings of subsidiaries		(1,388)		(852)		(1,413)
Deferred income taxes and tax credits-net		11		10		(72)
Noncurrent income taxes receivable/payable		-		-		5
Current income taxes receivable/payable		(1)		5		(16)
Other		(24)		(70)		43
Net cash provided by operating activities		65		33		48
Cash Flows From Investing Activities:
Investment in subsidiaries		(835)		(705)		(978)
Dividends received from subsidiaries (1)		911		716		716
Proceeds from tax equity investments		-		-		368
Net cash provided by (used in) investing activities		76		11		106
Cash Flows From Financing Activities:
Borrowings (repayments) under revolving credit facilities		-		-		(260)
Proceeds from issuance of long-term debt, net of discount and
issuance costs of $3		-		-		347
Repayments of long-term debt		-		-		(350)
Common stock issued		822		780		802
Common stock dividends paid (2)		(921)		(856)		(828)
Net cash provided by (used in) financing activities		(99)		(76)		(289)
Net change in cash and cash equivalents		42		(32)		(135)
Cash and cash equivalents at January 1		64		96		231
Cash and cash equivalents at December 31	$	106	$	64	$	96
Supplemental disclosure of cash flow information
Cash received (paid) for:
Interest, net of amounts capitalized	$	(9)	$	(9)	$	(15)
Income taxes, net		(13)		-		1
Supplemental disclosure of noncash investing and financing activities
Noncash common stock issuances	$	20	$	21	$	21
Common stock dividends declared but not yet paid		248		224		217

(1) Because of its nature as a holding company, PG&E Corporation classifies dividends received from subsidiaries as an investing cash flow.

(2) In January of 2016, PG&E Corporation paid a quarterly common stock dividend of $0.455 per share.
In April, July and October of 2016, respectively, PG&E Corporation paid quarterly common stock dividends of $0.49 per share.
In January, April, July, and October of 2015 and 2014, respectively, PG&E Corporation paid quarterly common stock dividends of $0.455 per share.