Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — PG&E Corporation Investor Conference 2008
19 slides from Pacific Gas & Electric's conference presentation, May 22, 2008
Slide 1: Appendix
Appendix Investor Conference May 22, 2008 Sonoma, California
Slide 2: Pacific Gas and Electric Company (PG&E)
Pacific Gas and Electric Company (PG&E) Provides energy to nearly 1 in 20 people in the U.S. 70,000 square-mile service territory Four main operational units: Electric and gas distribution Electric transmission Gas transmission Electric generation PG&E SERVICE AREA IN CALIFORNIA
Slide 3: 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 $11.0 billion of
Slide 4: Electric Transmission
Electric Transmission Business Scope Wholesale electric transmission services (construction, maintenance) Operation by CA Independent System Operator Primary Assets $2.6 billion of rate base (2007 wtd. avg.) Regulation Federal Regulation (FERC) Malin Cost of Service Ratemaking Round Mt R
Slide 5: 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 (2007 wtd. avg.)
Slide 6: Electric Procurement and Owned Generation
Electric Procurement and Owed Generation Business Scope Electricity and ancillary services from owned and controlled resources Energy procurement program Primary Assets $1.7 billion of rate base (2007 wtd. avg.) Diablo Canyon nuclear power plant (2,240 MW) Largest privately owned hydro sys
Slide 7: PG&E Generation in California
PG&E Generation in California Humboldt Conventional Hydroelectric facilities Helms Pumped Storage Diablo Canyon Power Plant
Slide 8: 2007 Customer Profiles - % by Sales
2007 Customer Profiles - % by Sales Agricultural Industrial & Other 5% 18% Commercial 8% Commercial Industrial 40% 18% Agricultural Residential Industrial Commercial & Other 6% 69% 23% 40% Residential 36%
Slide 9: Preferred Loading Order
Preferred Loading Order PG&E’s resource investment strategy is aligned with California’s Energy Action Plans: Energy Efficiency Demand Response Renewable Resources Distributed Generation Conventional Resources
Slide 10: 2008 RFO Process
2008 RFO Process Renewable RFO PG&E issued its annual Renewable RFO in March 2008 Objective to sign an additional 1-2% Offers due by June, followed by CPUC review Long-Term Plan 2006 Cycle PG&E issued its RFO in April, 2008 PG&E was authorized to procure 800-1200 MW of operationally flexib
Slide 11: PG&E: Existing Resource Mix
PG&E: Existing Resource Mix 2007 total sources of electric energy* Net Other Power Owned Type Capacity Percent Purchases Generation Irrigation 17% (MW) Districts 3% Diablo Nuclear 2,240 36% Utility Owned Canyon QFs/ 32% Renewables 23% Hydroelectric Hydro 3,896 62% Facilities DWR 25% Humboldt Fossil
Slide 12: Comparative Energy Procurement Costs
Comparative Energy Procurement Costs New Build Energy Procurement Cost ($/MWh) Solar & Emerging Biomass Geothermal Wind Energy Efficiency Diablo Canyon Combined Cycle 0 20 40 60 80 100 120 140 160
Slide 13: Renewable Contracts Signed
Renewable Contracts Signed Over 21% of Projected 2010 Load Currently Signed* Year Max Project Technology Year Max Signed GWh/yr Project Technology Signed GWh/yr 2006 Military Pass Rd. 840 Geothermal 2007 Solel 1388 Solar Thermal 2006 HFI Silvan 142 Biomass 2007 PPM-Klondike 265 Wind 2006 Liberty Bio
Slide 14: Carrying Cost Credit Impacts
Carrying Cost Credit Impacts Estimated Average Deferred Tax Balances and Carrying Cost Credit Impacts ($MM) ($MM) 2008 2009 2010 2011 2012 Energy Recovery Bond Average Deferred Tax $683 $542 $396 $243 $82 Balance Estimated After-tax $(40) $(32) $(23) $(14) $(5) Carrying Cost Credit* * Estimated carr
Slide 15: ERB Amortization Schedule
ERB Amortization Schedule ($MM) 2008 2009 2010 2011 2012 Annual ERB $354 $369 $386 $404 $423 Amortization End-of-year $1,582 $1,213 $827 $423 $- ERB balance
Slide 16: Liquidity Availability and Targets
Liquidity Availability and Targets Utility Holding Company Credit Facility Size $2 billion $200 million Target Minimum Unused $800 million $100 million Borrowing Capacity Target Cash Balance $0 $40 million
Slide 17: Credit Profile
Credit Profile Current Ratings Utility Corporate Credit/Issuer: BBB+ (S&P) and A3 (Moody’s) Utility Senior unsecured debt: BBB+ (S&P) and A3 (Moody’s) Average Utility Metrics (2008-2011)* S&P Business Profile Rating: 5 Total Debt to capitalization (EOY): 55% Funds from Operations Cash Inte
Slide 18: 2007 EPS - Reg G Reconciliation
2007 EPS - Reg G Reconciliation EPS on an Earnings from Operations Basis $2.78 Items Impacting Comparability 0.00 EPS on a GAAP Basis $2.78
Slide 19: EPS Guidance - Reg G Reconciliation
EPS Guidance - Reg G Reconciliation 2008 Low High EPS Guidance on an Earnings from Operations Basis* $2.90 $3.00 Estimated Items Impacting Comparability 0.00 0.00 EPS Guidance on a GAAP Basis $2.90 $3.00 2009 Low High EPS Guidance on an Earnings from Operations Basis* $3.15 $3.25 Estimated Items Imp