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) — AGA Financial Forum 2010
26 slides from Pacific Gas & Electric's conference presentation, May 17, 2010
Slide 1: PG&E Corporation AGA Financial Forum May 17-18, 2010
PG&E Corporation ® AGA Financial Forum May 17-18, 2010 Chris Johns President Pacific Gas and Electric Company 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, projections of Pacific Gas and Electric Company’s (Utility) capital expenditures, construction work in progress (CWIP), r
Slide 3: Operational Excellence
mployee nolders Operational Excellence integrity and communicate honest felivering for our.
Slide 4: 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 5: Regulatory Environment
Regulatory Environment • Gas Transmission & Storage • Transmission Owner Case • General Rate Case Key Regulatory Cases
Slide 6: 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 7: FERC TO12 Filing
FERC TO12 Filing Sets revenue requirements for PG&E’s Electric Transmission business in 2010-2011 Original Revenue Requirement Request: $946 million $800M Capital Expenditures All-Party Settlement reached in March, 2010: $875 million Adds additional transmission capacity and performance of maintenan
Slide 8: 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 $1.048 billion increase $2.7B average capital expenditures per year Allows for necessary investments in energy infrastructure to de
Slide 9: 2011 General Rate Case
2011 General Rate Case Filing includes a flexible attrition mechanism adjusting for: • labor cost adjustments • materials and services adjustments • capital related adjustments • other adjustments, such as changes in franchise, payroll or other taxes Attrition revenues are currently forecasted to be
Slide 10: Capital Expenditure Outlook
Capital Expenditure Outlook Low Case $4.0B Low Case $4.0B High Case $4.6B High Case $4.6B Low Case $3.2B Low Case $3.2B High Case $5.3B High Case $5.3B Low High $3.9B Cap Ex Forecast ($B) Cap Ex Forecast ($B) Actual Low High CapEx ranges have not been updated for recent developments in the Solar PV
Slide 11: Rate Base and CWIP
Rate Base and CWIP 2009 Actual Rate Base Low Case $21.4B High Case $21.3B Rate Base Low Case $21.4B High Case $21.3B Rate Base Low Case $24.0B High Case $24.4B Rate Base Low Case $24.0B High Case $24.4B Weighted Average Rate Base* and Construction Work in Progress ($B) Low High Low High Construction
Slide 12: 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 13: Excellent Service / Reasonable Cost
Excellent Service / Reasonable Cost PG&E is sensitive to customer needs - Historic trend in prices - Current comparisons - Plan to restructure residential electric tiers
Slide 14: Residential Avg. Electric Rate
Public Purpose Program & Other Transmission & Distribution Residential Avg. Electric Rate $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 $0.22 CPI Generation
Slide 15: Residential Avg. Gas Rate
Residential Avg. Gas Rate Transportation Procurement includes: Gas Supply, Transport to CA Border, Backbone Transmission and Storage Transportation includes: Distribution, Local Transmission, SmartMeter, Solar Programs and Balancing Accounts $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 CPI Procur
Slide 16: Source: Edison Electric Institute, Statistical Yearbook, Year 2008
Source: Edison Electric Institute, Statistical Yearbook, Year 2008
Slide 17: Source: American Gas Association, Gas Facts, Year 2008
Source: American Gas Association, Gas Facts, Year 2008
Slide 18: Proposed Summer Rate Relief
Proposed Summer Rate Relief Reduce overall rates by $400M, about 3%, effective June 1, 2010 Collapse Tiers 4 and 5 into one tier and substantially reduce the rates, and moderately increase Tier 3
Slide 19: GRC Phase - Residential Rate Design
GRC Phase 2 - Residential Rate Design Collapse Tiers 3, 4 and 5 into a single Tier 3
Slide 20: 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 21: Appendix
® Appendix
Slide 22: Key Regulatory Proceedings Schedule
@ agytca Bort |Nuclear Relicensing A.10-01-022 |TBD 2011 General Rate Case ("GRC") A.09-12-020 | Final decision is expected in Q4 2010 2011 GRC Phase I ‘A.10-03-014 | Final decision is expected in Q2 2011 |Manzana Wind Project A.09-12-002 _|Final decision is requested by the end of Q4 2010 |Request
Slide 23: Cost of Capital
Cost of Capital 52% Equity Level · 11.35% ROE · Adj ustment Mechanism • Decided separately from General Rate Case • Current terms in place until 2013 • Triggers change to ROE if average Moody’s Utility (A or Baa) bond yield index over a 12 month period moves up or down by 100 basis points over bench
Slide 24: Financial Assumptions: 2010-2011
Financial Assumptions: 2010-2011 GUIDANCE REFLECTS: Capital expenditures consistent with low and high case ranges Utility earns ROE of at least 11.35% Ratemaking capital structure maintained at 52% equity CEE incentives and tax cash flow consistent with high and low case ranges Resolution of FERC ge
Slide 25: 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 26: 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