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) — Goldman Sachs Power and Utility Conference 2010
21 slides from Pacific Gas & Electric's conference presentation, Aug 12, 2010
Slide 1: Goldman Sachs Power and Utility Conference
® Goldman Sachs Power and Utility Conference August 12, 2010 PG&E Corporation Exhibit 99
Slide 2: Cautionary Language Regarding Forward-Looking Statements
Cautionary Language Regarding Forward-Looking Statements This presentation contains management’s guidance for PG&E Corporation’s 2010 and 2011 earnings per share from operations. These statements and projections, as well as the underlying assumptions, are forward-looking statements that are based on
Slide 3: Table of Contents
Table of Contents Overview Page 4 Regulatory Update Page 8 Appendix Page 18
Slide 4: Pacific Gas and Electric Company (PG&E)
Pacific Gas and Electric Company (PG&E) • Provides energy to approximately 15 million people • 70,000 square-mile service territory • Four main operational units: Electric and gas distribution Electric transmission Natural gas transmission Electric procurement and owned generation PG&E SERVICE AREA
Slide 5: PCG Investment Case
PCG Investment Case Excellent service at reasonable cost Constructive regulatory environment Investment in infrastructure- providing solid, regulated growth Clean generation and world-class energy efficiency programs Stable capital structure and return Reliable, growing dividend
Slide 6: Dividend Policy
Dividend Policy Sustainable, comparable dividend Payout ratio range of 50% - 70% Dividend growth in line with EPS growth
Slide 7: EPS Guidance
EPS Guidance $3.85 $2.95 $3.65 $3.50 $3.35 $3.21 $3.85 Actual $2.95 $3.65 Low Low High High Low Low High High $3.50 $3.35 Earnings per Share from Operations* Earnings per Share from Operations* Actual $3.21 * Reg G reconciliation to GAAP for 2008 and 2009 EPS from Operations, and 2010-2011 EPS Guida
Slide 8: Regulatory Update
® Regulatory Update
Slide 9: 2011 General Rate Case
2011 General Rate Case Sets revenue requirements for Gas and Electric Distribution and Electric Generation businesses for 2011 - 2013 Revenue Requirement Request: $6.7B $1.1B increase $2.7B average capital expenditures per year Allows for necessary investments in energy infrastructure to deliver ene
Slide 10: 2011 General Rate Case
2011 General Rate Case Also requested a flexible attrition mechanism to adjust for: • Labor costs • Materials and services • Capital investments • Changes in franchise, payroll or other taxes Based on the requested mechanism, attrition revenues are currently forecasted to be $275M and $343M in 2012
Slide 11: 2011 Gas Transmission and Storage Rate Case
2011 Gas Transmission and Storage Rate Case Sets revenue requirements, rates, terms and conditions for PG&E’s Gas Transmission and Storage services for 2011 - 2014 Revenue Requirement Request: $529M $67M increase over 2010 revenue requirement $235M Capital Expenditures Allows for upgrades to backbon
Slide 12: Manzana Wind Project
Manzana Wind Project Request for revenue requirements to acquire, own, and operate the 189 - 246MW Manzana wind project in the Tehachapi region of Southern California Request: $900M (all capital) at 246MW capacity Manzana Wind Project would be designed, developed, and constructed by Iberdrola Renewa
Slide 13: FERC TO13 Filing
FERC TO13 Filing Sets revenue requirements for PG&E’s Electric Transmission business in 2011 Revenue Requirement Request: $1.026B Capital Expenditures: $810M If approved, revenues would provide for additional transmission capacity and increased maintenance and replacement work on our substations to
Slide 14: Recent Decisions: Cornerstone Reliability Program
Recent Decisions Cornerstone Reliability Program Sets revenue requirements aimed at improving the reliability of PG&E’s electric distribution system Approved Final Decision (6/24/10): • $350M in reliability focused capital investments through 2013 • CPUC provided the opportunity for additional relia
Slide 15: Recent Decisions: Solar PV Program
Recent Decisions Solar PV Program Sets revenue requirements to develop and own up to 250MW of PV and sign PPAs for an additional 250MW of PV over a five year period Approved Final Decision (4/22/10): • $1.45B (all capital) for the Utility-owned 250MW • Authorized cost of service ratemaking treatment
Slide 16: Recent Decisions: Summer Rate Relief Program
Recent Decisions Summer Rate Relief Program As proposed by PG&E, the CPUC approved reducing overall rates by $400M, a 3% decrease, effective June 1, 2010 For residential rates, reductions focused on highest rate tiers • Substantially reduced rates in Tier 5 by 19.6% and Tier 4 by 5.8% • Moderately i
Slide 17: Appendix
® Appendix
Slide 18: Regulatory dockets and expected decision dates
_ Regulatory ¢ [dockets | Expected Decisiondate | Transmission Owner ("TO") 13 Rate Case ER.10-2026-000} Final decisions requested in Q3 2011 ‘Long Term Procurement Plan (LTPP) R.10-05-006 [Final decisions for Track Wand Wexpected in 2011 or Jas appropriate Nuclear Relicensing ‘A.10-01-022 Final dec
Slide 19: 2008 EPS - Reg G Reconciliation
2008 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 operation
Slide 20: 2009 EPS - Reg G Reconciliation
2009 EPS - 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 operati
Slide 21: 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