Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E Corp (Pcg, Pcg-Pa, Pcg-Pb, Pcg-Pc, Pcg-Pd, Pcg-Pe, Pcg-Pg, Pcg-Ph, Pcg-Pi) — Non-Deal Roadshow (May 2011)
17 slides from Pacific Gas & Electric's roadshow presentation, May 16, 2011
Slide 1: PG&E Corporation Investor Meetings May 16-17, 2011
® PG&E Corporation Investor Meetings May 16 - May 17, 2011 Kent Harvey Chief Financial Officer, PG&E Corporation Exhibit 99
Slide 2: Cautionary Language Regarding Forward-Looking Statements
Cautionary Language Regarding Forward-Looking Statements This presentation contains forward-looking statements regarding the anticipated outcome and timing of various regulatory proceedings involving Pacific Gas and Electric Company (“Utility”), estimated costs and future insurance recoveries associ
Slide 3: Table of Contents
Table of Contents Rate Case Updates Page 4 Gas Pipeline Updates Page 7 Financial Summary Page 11 Appendix Page 16
Slide 4: 2011 General Rate Case Final Decision
2011 General Rate Case Final Decision Settlement Revenue Requirement Increase $395 Revenue for Undepreciated Legacy Meters $ 55 Total $450 Average annual capital expenditures: $2.2 - $2.3B Attrition revenues: $180M and $185M for 2012 and 2013 2011 Revenue Requirements ($ in Millions) Final decision
Slide 5: 2011 Gas Transmission and Storage Rate Case Final Decision
2011 Gas Transmission and Storage Rate Case Final Decision Settlement Revenue Requirement Increase $52 Final decision approved in April for 2011 - 2014 2011 Revenue Requirements ($ in Millions) • Commission approved settlement Average annual capital expenditures: $174M Attrition revenues: $27M, $24M
Slide 6: FERC TO13 Filing
FERC TO13 Filing Revenue Requirement Request $1,026 Proposed Settlement $ 934 Rates approved in March, subject to refund Settlement filed on April 28, 2011 for 2011 TO13 final decision expected by Q3 2011 2011 Revenue Requirements ($ in Millions)
Slide 7: San Bruno Update - NTSB
San Bruno Update - NTSB NTSB has primary responsibility to determine root cause Ruled out external corrosion or excavation-related damage Noted discrepancy in PG&E’s records relating to ruptured pipeline Issued recommendations to verify pipeline records in January 2011 Final NTSB report expected in
Slide 8: San Bruno Update - CPUC
San Bruno Update - CPUC CPUC appointed an Independent Review Panel to look into PG&E and Commission policies and practices for managing gas transmission system • Final Review Panel report expected in late May In February, the CPUC began: • an investigation of the Utility’s gas pipeline recordkeeping
Slide 9: Gas Transmission System Records OII
Gas Transmission System Records OII Primary objectives • Examine PG&E’s gas transmission recordkeeping practices for compliance with regulatory standards • Determine whether deficient recordkeeping caused or contributed to the San Bruno pipeline accident OII will take into account NTSB report findin
Slide 10: Gas Pipeline Safety OIR
Gas Pipeline Safety OIR May 10, 2011 proposed decision would require all California gas transmission operators file a comprehensive “Implementation Plan” 60 days after a final decision addressing: • Plan for pressure testing or replacement of pipeline segments lacking complete records • Interim plan
Slide 11: Capital Expenditures
Capital Expenditures 2010 Actual CapEx Forecast ($B) (1) $3.9B CapEx CapEx from Bonus Depreciation Q1’11 earnings call: As a result of bonus depreciation, we’ll increase our CapEx about $200 million this year and $600 million next year (compared to 2010). (1) Current as of May 4, 2011, the date of P
Slide 12: Rate Base
Rate Base 2010 Actual 2011 Authorized Rate Base ($B) (1) (1) Current as of May 4, 2011, the date of PG&E Corporation’s earnings release Q1’11 earnings call: Our rate base will grow more modestly in 2012, perhaps half the rate of 2011. We don’t receive customer funding for items like charitable contr
Slide 13: Dividend 2011
Dividend 2011 Payout ratio range of 50% - 70% Maintain current level for 2011
Slide 14: Financial Impacts of Pipeline Matters
Financial Impacts of Pipeline Matters Incurred Costs Third-Party Liability Accrual Costs in 2010 $63 million $220 million Estimated 2011 Range (1) $350 - $550 million $0 - $180 million Charges Related to Gas Pipeline Matters PG&E expects a significant portion of the costs associated with third-party
Slide 15: 2011 Equity Needs
2011 Equity Needs (1) Internal Equity Sources 401(k) and DRIP Programs ~$250 million for 2011 External Equity Expected ~$150 million for 2011 Source: Equity Dribble Program initiated November 2010 (1) Current of as May 4, 2011, the date of PG&E Corporation’s earnings release
Slide 16: Appendix
® Appendix
Slide 17: Regulatory Proceedings Schedule
@ [ oe Fair oceans Order nsttuting Rulemaking regarding New R:1-02.019 [Safety Regulations for Gas Pipelines D.ttos-c47. [Schedule not vetedopted Order isttuting Investigation regarding Gas Eshiee - 111-02.016 | Schedule not yet adopted (Order Rattiing vestigation regaraing the ‘December 24, 2008 Ac