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) — Sanford Bernstein Strategic Decisions Conference 2009
22 slides from Pacific Gas & Electric's conference presentation, May 27, 2009
Slide 1: Sanford Bernstein Strategic Decisions Conference
Sanford Bernstein Strategic Decisions Conference May 27, 2009
Slide 2: Pacific Gas and Electric Company (PG&E) Service Area in California
Pacific Gas and Electric Company (PG&E) PG&E SERVICE AREA IN CALIFORNIA
Slide 3: 3-year Total Shareholder Return
3-year Total Shareholder Return Merchant Generator Group Merchant Generator Group AES Corporation Dynegy Inc. Mirant Corporation Reliant Energy AES Corporation Dynegy Inc. Mirant Corporation Reliant Energy Comparator Group Comparator Group Ameren Corporation Consolidated Edison NiSource Inc. Souther
Slide 4: 1-year Total Shareholder Return
1-year Total Shareholder Return
Slide 5: PCG Investment Case
PCG Investment Case • PCG is focused on better service to our customers, which is the foundation of our growth: • Substantial Cap Ex Program • Manageable financing requirements • Decoupled revenues • Pass-through of procurement costs • 11.45% weighted ROE on 52% equity • Low carbon footprint
Slide 6: Our Vision, Goals, Strategies and Values
OUR VISION The leading utility in the United States OUR GOALS Delighted Customers Energized Employees Rewarded Shareholders Environmental Leadership OUR STRATEGIES Customer Focus Operational Excellence *We act with integrity and communicate honestly OUR VALUES and openly *We are passionate about mee
Slide 7: Business Priorities
Business Priorities • Improve reliability • Improve safety and human performance • Deliver on budget, on plan, and on purpose • Drive customer satisfaction • Champion effective regulatory and legislative policies
Slide 8: Key Business Drivers
Key Business Drivers • Pre-approved CapEx • Upgraded SmartMeters • Electric & Gas Distribution • Poles and Substations • Generation • Transmission • System Expansion & Replacement
Slide 9: Capital Expenditure Outlook
Capital Expenditure Outlook Low Case $3.6B Low Case $3.6B High Case $3.7B High Case $3.7B Low Case $3.4B Low Case $3.4B High Case $3.8B High Case $3.8B Low Case $3.3B Low Case $3.3B High Case $4.8B High Case $4.8B 2.0 2.5 3.0 3.5 4.0 4.5 5.0 $ B Low Low High High Low Low High High Low Low High High
Slide 10: Rate Base Growth
* Actual 2008 and projected 2009-2011 rate base is not adjusted for the impact of the carrying cost credit that primarily results from the second series of the Energy Recovery Bonds. Earnings will be reduced by an amount equal to the deferred tax balance associated with the Energy Recovery Bonds reg
Slide 11: EPS Guidance
EPS Guidance * Reg G reconciliation to GAAP for 2008 EPS from Operations, and 2009-2011 EPS Guidance available in Appendix and at www.pge-corp.com
Slide 12: Financial Assumptions 2009-2011
Financial Assumptions 2009-2011 GUIDANCE REFLECTS: • Capital expenditures consistent with low and high case ranges • CPUC authorized ROE of at least 11.35% and Utility earns at least 12% on FERC projected rate base • Ratemaking capital structure maintained at 52% equity • CEE incentives, operational
Slide 13: Dividend Policy
• Sustainable, comparable dividend • Payout ratio range of 50% - 70% • Dividend growth in line with EPS growth. Dividend Policy Historical Quarterly Dividends per Share
Slide 14: Key Regulatory Filings
2009 2010 2011 2009 2010 2010 2011 Key Regulatory Filings General Rate Case Summer 2009: Prepare and File Notice of Intent Summer 2009: Prepare and File Notice of Intent Summer 2010: Hearings January 2011: Rates go into effect Transmission Owner Rate Cases Summer 2009: File TO 12 Summer 2009: File T
Slide 15: Legislative Action: GHG
Legislative Action: GHG Recent Legislative Activity: • California AB • Federal activity ongoing PG&E Supports: • A cap and trade approach • Fair allocation of credits • Recognition of prior actions
Slide 16: PCG: Outlook for the Future
PCG: Outlook for the Future Leading renewable and energy efficiency programs… … and limiting risk from new carbon legislation … and limiting risk from new carbon legislation
Slide 17: PCG Investment Case
PCG Investment Case • PCG is focused on better service to our customers, which is the foundation of our growth: • Substantial Cap Ex Program • Manageable financing requirements • Decoupled revenues • Pass-through of procurement costs • 11.45% weighted ROE on 52% equity • Low carbon footprint
Slide 18: Forward-looking statements
This presentation contains management’s guidance for PG&E Corporation’s 2009, 2010 and 2011 earnings per share from operations, projections of Pacific Gas and Electric Company’s (Utility) capital expenditures, rate base and rate base growth, and projections of PG&E Corporation’s and the Utility’s fi
Slide 19: Appendix
Appendix
Slide 20: CPUC Cost of Capital Mechanism
Benchmark (Oct. 06 - Sept. 07) Rating Benchmark A 6.02 Baa 6.26 CPUC Cost of Capital Mechanism Moody’s Utility Bond Yield Index Current Avg. Rating (Oct. 08 - Apr. 09) A 6.76 Baa 8.19 If the Moody’s Utility Bond Yield Index average for October 2008 - September 2009 moves above 100 basis points from
Slide 21: EPS - Reg G Reconciliation
EPS - Reg G Reconciliation * Earnings per share from operations is a non-GAAP measure. This non-GAAP measure is used because it allows investors to compare the core underlying financial performance from one period to another, exclusive of items that do not reflect the normal course of operations. **
Slide 22: EPS Guidance - Reg G Reconciliation
EPS Guidance - Reg G Reconciliation (1) Earnings per share from operations is a non-GAAP measure. This non-GAAP measure is used because it allows investors to compare the core underlying financial performance from one period to another, exclusive of items that do not reflect the normal course of ope