Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — PG&E Corporation Investor Conference 2008
30 slides from Pacific Gas & Electric's conference presentation, May 22, 2008
Slide 1: Regulatory Overview
Regulatory Overview Investor Conference May 22, 2008 Tom Bottorff Senior Vice President, Regulatory Relations 1
Slide 2: Topics for Discussion
Topics for Discussion Utility Revenue Requirement Revenue Protected from Sales Fluctuations Key Regulatory Proceedings Average Electric Rate Compared to CPI CPUC Commissioner Terms 2
Slide 3: Utility Revenue Requirement
Utility Revenue Requirement May 2008 $16,000 $12,000 54% $ /M illio n s $8,000 50% 5% 7% $4,000 41% 64% 43% 2% 34% $0 Electric Gas Combined Base Public Purpose Programs Electric Supply Combined Electric and Natural Gas Supply Natural Gas 3
Slide 4: Revenue Protected from Sales Fluctuations
Revenue Protected from Sales Fluctuations Revenue not protected from sales fluctuations 6% Base 35% Base 54% Electric and gas supply 5% Public Purpose Total revenue protected from sales fluctuations = 94% 4
Slide 5: Key Regulatory Proceedings
Key Regulatory Proceedings Case Expected/Actual Expected Decision Filing Date Date 2011 General Rate Case August 2009 (NOI) Q4 2010 Transmission Owners Rate Case 10 7/30/07 Q2 2009/Q3 2010* Cost of Capital – Phase 2 5/8/07 Q2 2008 Cornerstone Improvement Program 5/15/08 TBD SmartMeterTM Upgrade 12/1
Slide 6: Average Electric Rate Compared to CPI
Average Electric Rate Compared to CPI 20.00 16.00 15.9¢ CPI 13.7¢ cents / kWh 12.00 10.5¢ 8.00 Average Bundled Electric Rate 4.00 0.00 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 6
Slide 7: CPUC Commissioner Terms
CPUC Commissioner Terms California Public Utilities Commission Commissioners serve six-year staggered terms; appointed by Governor, confirmed by state Senate Current commissioners/term expiration date: President Michael Peevey January 1, 2009 Commissioner John Bohn January 1, 2012 Commissi
Slide 8: Reliability Overview
Reliability Overview Investor Conference May 22, 2008 Ed Salas, Senior Vice President, Engineering and Operations Geisha Williams, Senior Vice President, Energy Delivery 8
Slide 9: The Cornerstone Improvement Program Summary
The Cornerstone Improvement Program Summary PG&E seeking CPUC approval for a six-year program to improve reliability of our electric distribution system. Enhances overall reliability of energy delivery Increases grid flexibility to mitigate outages Sets higher performance expectations as measu
Slide 10: Cornerstone Program Costs
Cornerstone Program Costs $2.3 B total capital investment with revenue requirement true-up $700 $600 $500 $400 $300 $200 $100 $0 2009 2010 2011 2012 2013 2014 10
Slide 11: Cornerstone Program Scope
Cornerstone Program Scope Three major initiatives: 1. Increase available capacity and interconnectivity of system by installing approximately 95 substation transformers, 180 additional feeders, and 1,000 miles of conductor 2. Implement distribution automation on approximately 1,200 circuits in urban
Slide 12: Cornerstone Program Benefits
Cornerstone Program Benefits Reduces duration, frequency, and extent of outages Reduces duration by about 25% Lowers frequency by about 30% Increases ability to reconfigure system to quickly restore service Together with PG&E’s SmartMeterTM initiatives, provides the foundation for a “Smart
Slide 13: Conclusion
Conclusion The Cornerstone Improvement Program is a significant step toward building a more robust electric infrastructure This provides an opportunity to: Increase customer satisfaction Decrease outage duration and Prepare for the grid of the future 13
Slide 14: Customer Overview
Customer Overview Investor Conference May 22, 2008 Helen Burt, Senior Vice President and Chief Customer Officer Brad Whitcomb, Vice President, Marketing and Customer Innovation 14
Slide 15: Agenda
Agenda Customer Care Background Customer Segmentation Demand Side Management The SmartMeter™ Program 15
Slide 16: Customer Care Mission Statement
Customer Care Mission Statement “We commit to earn the right to serve customers one interaction at a time.” 16
Slide 17: Customer Satisfaction Performance
Customer Satisfaction Performance Electric Customers Gas Customers J.D. Power Rank: Rank: Rank: Rank: 2/55 11/56 4/38 2/40 Top Business Quartile Rank: Overall Customer 11/37 Satisfaction Index 2nd Quartile 3rd Quartile Rank: 46/51 Bottom Quartile 2006 2007 2008 2006 2007 2008 Rank: 5/56 Top Resident
Slide 18: Customer Satisfaction Success
Customer Satisfaction Success PG&E has taken Business Customer Satisfaction from 4th Quartile (“Worst”) to the Top Quartile (“First”) Business Customer Satisfaction Drivers 1. Segmenting our business customers 2. Tailoring our product offerings 3. Focusing our Service and Sales force 4. Providing a
Slide 19: Residential Segmentation
Residential Segmentation Segmentation leads to enhanced customer experience HIGH Customer Needs Energy Needs • Higher Income / Large Homes • Non-Temperate Climate Account Needs • Multiple Accounts • Multiple Payment Methods • Missed 20% Payments past 12 months Attention Needs • Help Tickets(2+ Past
Slide 20: Demand Side Management
Demand Side Management Demand Side Management is projected to offset over 50% of PG&E’s future load growth Demand Reduction Strategies Demand Energy Solar Transportation Response Efficiency 20
Slide 21: 2007 Energy Efficiency Successes
2007 Energy Efficiency Successes The Best Year Ever in Energy Efficiency Innovation PG&E set a personal best in terms of the highest gross savings we’ve ever achieved Prevented more than 1 million tons of CO2 emissions Equivalent to taking 150,000 cars off the road for one year Saved enough
Slide 22: Energy Efficiency Incentive Approval Process
Energy Efficiency Incentive Approval Process Expected Date Activity Summer 2008 CPUC finalizes metrics used to evaluate net energy efficiency results for 2006-2007 performance Sep 2008 PG&E files for 2006-2007 earnings Dec 2008 PG&E receives approval from CPUC to book 65% of 2006-2007 earnings (rema
Slide 23: Looking Ahead
Looking Ahead 2009 – 2011 Energy Efficiency Programs Opportunities for Innovation 23
Slide 24: Innovating for the Future: Smart Energy Web Future
Innovating for the Future: Smart Energy Web Future Near-Term • Vehicle to Grid Today • Home Area • Distributed storage Network Energy and generation Management • SmartMeters™ • PHEV • Electric Field Vehicles SmartCharge™ 24
Slide 25: Procurement Overview
Procurement Overview Investor Conference May 22, 2008 Fong Wan, Vice President, Energy Procurement Roy Kuga, Vice President, Energy Supply 25
Slide 26: Energy Procurement Objectives and Challenges
Energy Procurement Objectives and Challenges Manage electric and gas procurement to achieve the following objectives: Ensure reliable supply Reduce customer costs and price risk Support environmentally preferred resources Minimize shareholder risk Key challenges include managing the unce
Slide 27: Energy Procurement Strategy
Energy Procurement Strategy Portfolio diversification is key to long-term success Portfolio of both utility owned generation and IPP contracts Diversify contracts across terms, technologies, and counterparties to ensure performance Diversify timing of commercial execution to minimize market
Slide 28: Energy Procurement Accomplishments
Energy Procurement Accomplishments We have made the following progress toward achieving our goals: Reliably met our gas and electric demands with full cost recovery Contracted for over 3000 MW of renewable energy resources Contracted or developed over 2000 MW of new, efficient, operationally f
Slide 29: Emerging Clean Technologies
Emerging Clean Technologies BioGas Renewable Fuel Cell Wind Wave Energy Storage Geothermal 29
Slide 30: Solar Technologies Under Deployment
Solar Technologies Under Deployment Trough Power Tower Concentrating PV Dish Engine Compact Linear Fresnel Thin Film PV 30