PG&E is a holding company whose main subsidiary is Pacific Gas and Electric, a regulated utility operating in Central and Northern California that serves 5.7 million electricity customers and 4.6 million gas customers in 47 of the state's 58 counties. PG&E operated under bankruptcy court supervision in 2001-04 during California's energy crisis and in 2019-20 due to wildfire losses. In 2004, PG&E sold its unregulated assets as part of its first postbankruptcy reorganization.

PG&E Corp. is the holding company for Pacific Gas & Electric Co., an investor-owned utility. The utility provides electricity to 5.5 million accounts and natural gas to 4.5 million accounts in northern and central California. Electricity accounted for about 71% of 2023 revenues. The company's customer base is weighted toward residential and small business customers. In 2023, 43% of GWh sales was from residential customers and 37% was from smaller commercial customers. About 80% of 2023 bundled gas sales was from residential customers. PG&E is also a large operator of underground natural gas storage fields in California. As of the end of 2023, the utility had 26 GWh of generating capacity, with an owned generation fuel mix including 25% from natural gas, 15% hydropower, 2% renewable, and 58% nuclear. Purchased power is 35% renewably sourced. The company had planned to shut down the Diablo Canyon nuclear plant by 2025 as management said that it could not afford to run the plant. However, regulators supported the plant, and PCG has now applied for a license and federal aid to continue to operate Diablo Canyon. PG&E was added to the S&P 500 in 3Q22 after it had met the requirements for inclusion. Its market cap is $38 billion.

The major stock indices are lower at midday. Data came out this morning that showed stubborn inflation on the wholesale side. Tomorrow, data will be released that will offer a view of inflation on the consumer side. Wall Street continues to monitor the price of oil and bond yields, both of which continue to creep higher. Crude oil is over $100 per barrel mark. The yield on the 10-year note is up nine basis points to 4.92%.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.