Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Edison Electric Institute Financial Conference 2009
25 slides from Pacific Gas & Electric's conference presentation, Nov 2, 2009
Slide 1: PG&E Corporation Business Update
PG&E Corporation Business Update Edison Electric Institute Financial Conference November 2-3, 2009 Hollywood, Florida
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: 2009 Business Priorities
2009 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 3
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 4
Slide 5: EPS Guidance
EPS Guidance Earnings per Share from Operations High $3.85 High $3.50 Low $3.65 Low $3.35 High $3.25 $3.15 Low $2.95 $2.78 2008 2009 2010 2011 Actual * Reg G reconciliation to GAAP for 2008 EPS from Operations, and 2009-2011 EPS Guidance is contained in the Appendix and at www.pge-corp.com under the
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 2012 • No ROE adjustment in 2010 7
Slide 8: GRC Overview
GRC Overview • Continued investments in safe and reliable service • Contribute to economy of our local communities • Work toward a greener, smarter energy future 2011 General Rate Case 2009 2010 2011 July: December: Summer 2010: January 2011: Filed Notice of Intent File Application Hearings Rates go
Slide 9: Key Regulatory Proceedings
Key Regulatory Proceedings Case Docket # Filing / Decision Date Energy Efficiency 2006-2008 Cycle R. 09-01-019 Q4 2009 SmartGrid Order Instituting Rulemaking (OIR) R. 08-12-009 Q4 2009 Cornerstone Improvement Program A. 08-05-023 Q1 2010 Solar PV Application A. 09-02-019 Q1 2010 Request for New Gene
Slide 10: Energy Efficiency Incentive Revenues
Energy Efficiency Incentive Revenues 2006 – 2008 Cycle • 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 2009 and beyond • Deve
Slide 11: PG&E 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 11
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) 12
Slide 13: Colusa Generating Station Update
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 13
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 14
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 15
Slide 16: Appendix
Appendix
Slide 17: Electric And Gas Distribution
Electric And Gas Distribution 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
Slide 18: Electric Transmission
Electric Transmission 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) Malin Round Mt • Cost of service ratemaking • R
Slide 19: Natural Gas Transmission
Natural Gas Transmission 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.)
Slide 20: Electric Procurement & Owned Generation
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
Slide 21: PG&E Generation in California
PG&E Generation in California Conventional Hydroelectric facilities Gateway Helms Pumped Storage Diablo Canyon Power Plant 21
Slide 22: 2008 Customer Profiles (% by Sales)
2008 Customer Profiles (% by Sales) Electric Customers Gas Customers (88,127 GWh delivered) (833 Bcf delivered) Agricultural Industrial & Other 5% 18% Commercial 8% Industrial Commercial 18% 39% Agricultural Residential Industrial Commercial & Other 7% 68% 24% 40% Residential 36% 22
Slide 23: 2008 Resource Mix
2008 Resource Mix 2008 total sources of electric energy* Net Owned Generation Type Capacity (MW) Irrigation Districts 2% Diablo Canyon Nuclear 2,240 Other Power Utility Owned Purchases 30% 35% Hydroelectric Facilities Hydro 3,896 Humboldt Fossil 135 Total 6,271 DWR QF / Renewables 15% 18% * Approxim
Slide 24: 2008 EPS - Reg G Reconciliation
2008 EPS - Reg G Reconciliation 2008 EPS on an Earnings from Operations Basis* $2.95 Items Impacting Comparability** 0.68 EPS on a GAAP Basis $3.63 * 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 fin
Slide 25: EPS Guidance - Reg G Reconciliation
EPS Guidance - Reg G Reconciliation Guidance Range 2009 Low High EPS Guidance on an Earnings from Operations Basis (1) $3.15 $3.25 Estimated Items Impacting Comparability (2) Tax Refunds(3) $0.18 $0.18 Recovery of hydro divestiture costs(4) $0.07 $0.07 Accelerated work on gas system(5) ($0.16) ($0.1
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