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) — Edison Electric Institute Financial Conference 2009
25 slides from Pacific Gas & Electric's conference presentation, Nov 2, 2009
Slide 1: Business Update - EEI Financial Conference
Business Update Edison Electric Institute Financial Conference November 2-3, 2009 Hollywood, Florida PG&E Corporation Exhibit
Slide 2: Cautionary Language Regarding Forward Looking Statements
Cautionary Language Regarding Forward Looking Statements This presentation contains forward-looking statements regarding management’s guidance for PG&E Corporation’s 2009, 2010, and 2011 earnings from operations per common share, the assumptions on which the guidance is based, and proposed capital e
Slide 3: 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 4: 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 5: Earnings per Share from Operations
$3.25 $3.15 $3.85 $2.95 $3.65 $3.50 $3.35 $3.25 $3.15 EPS Guidance $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 * Reg G reconciliation to GAAP for 2008 EPS from Operations, and 2009-2011 EPS Guidance is
Slide 6: 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 7: Cost of Capital
Cost of Capital • Affirmative decision to extend cost of capital mechanism • Maintains 52% equity capital structure through 2012 • Maintains 11.35% ROE and adjustment mechanism through • No ROE adjustment in 2010
Slide 8: GRC Overview
2009 2010 2011 GRC Overview • Continued investments in safe and reliable service • Contribute to economy of our local communities • Work toward a greener, smarter energy future General Rate Case July: Filed Notice of Intent Summer 2010: Hearings January 2011: Rates go into effect December: File Appl
Slide 9: Key Regulatory Proceedings
Filing / Decision Date Docket # Case Key Regulatory Proceedings Q1 A. 09-02-019 Solar PV Application Q1 A. 08-05-023 Cornerstone Improvement Program Q4 R. 09-01-019 Energy Efficiency 2006-2008 Cycle Q2 A. 09-04-001 Request for New Generation Offers Q3 ER09-1521-000 Transmission Owner Rate Case 12 Fi
Slide 10: Energy Efficiency Incentive Revenues
Energy Efficiency Incentive Revenues • Received 35% of 2006-2007 incentive award in 2008 • Expecting CPUC decision on proposed 2006-2008 interim incentive award by December 2009 • Expecting CPUC decision to resolve held back incentive amounts by December 2010 - - 2008 Cycle - - 2008 Cycle and beyond
Slide 11: Ownership of Renewables
PG&E Ownership of Renewables Proposed Solar PV Program • Up to 250 MW of Utility-owned PV generation • Up to 250 MW of standard-offer PV PPAs Next Steps • 2MW pilot program underway • Operational target date end of 2009 • Next 25 MW planned for 2010
Slide 12: New Conventional Generation Offers
New Conventional Generation Offers • 800-1,200 MW of new resources to be on-line by 2015 • All contracts filed with CPUC, waiting for approval • Mariposa - 184 MW • Marsh Landing - 719 MW • Midway Sunset - 129 MW • Contra Costa Generating Station - 586 MW (Purchase and Sale Agreement)
Slide 13: Colusa Generating Station Update
• 659 MW generating capacity • Capital investment of $673 MM • Approximately 70% complete • 425 workers on site • All generating equipment on foundations • Online in 2010 Colusa Generating Station Update
Slide 14: Humboldt Bay Generating Station
Humboldt Bay Generating Station • 163 MW generating capacity • Capital investment of $239 MM • Approximately 60% complete • 130 workers on site • Online in 2010
Slide 15: SmartMeter Program Update
SmartMeter Program Update • Largest deployment of Advanced Metering Infrastructure (AMI) nationwide • Capital investment of $1.8 B • Installations complete in 2012 • Enables time-of-use pricing • Enhanced capabilities over time • Installed about 3.8MM SmartMeters to date
Slide 16: Appendix
Appendix
Slide 17: Electric and Gas Distribution Business Scope
Business Scope • Retail electricity and natural gas distribution service (construction, operations and maintenance) • Customer services (call centers, meter reading, billing) • 5.1 million electric and 4.3 million gas customer accounts Primary Assets • $11.9 billion of rate base (2008 wtd. avg.) Reg
Slide 18: Electric Transmission Business Scope
Business Scope • Wholesale electric transmission services (construction, maintenance) • Operation by CA Independent System Operator Primary Assets • $2.8 billion of rate base (2008 wtd. avg.) Regulation • Federal regulation (FERC) • Cost of service ratemaking • Revenues vary with system load Midway
Slide 19: Natural Gas Transmission Business Scope
Business Scope • Natural gas transportation, storage, parking and lending services • Customers: PG&E natural gas distribution and electric generation businesses, industrial customers, California electric generators Primary Assets • $1.5 billion of rate base (2008 wtd. avg.) Regulation • California s
Slide 20: Electric Procurement & Owned Generation
Business Scope • Electricity and ancillary services from owned and controlled resources • Energy procurement program Primary Assets • $2.0 billion of rate base (2008 wtd. avg.) • Diablo Canyon Nuclear Power Plant (2,240 MW) • Gateway Generating Station (530 MW) • Largest privately owned hydro system
Slide 21: PG&E Generation in California
Helms Pumped Storage Diablo Canyon Power Plant Conventional Hydroelectric facilities PG&E Generation in California Gateway
Slide 22: Customer Profiles (% by Sales)
Agricultural Industrial 68% Residential 24% Commercial 39% Residential 36% Electric Customers (88,127 GWh delivered) Gas Customers (833 Bcf delivered) Commercial 8% Industrial 18% Agricultural & Other 7% Customer Profiles (% by Sales)
Slide 23: Resource Mix
Owned Generation Type Diablo Canyon Nuclear 2,240 Hydroelectric Facilities Hydro 3,896 Humboldt Fossil 135 Total 6,271 Resource Mix * Approximately 12% of total retail sales are supplied by eligible renewable resources coming from utility-owned, QF, Irrigation Districts, and other sources. 30% 18% 1
Slide 24: EPS - Reg G Reconciliation
EPS on an Earnings from Operations Basis* $2.95 Items Impacting Comparability** 0.68 EPS on a GAAP Basis $3.63 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 per
Slide 25: Earnings from Operations Reconciliation Notes
(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 operations. (2) Items impacting compara