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) — Non-Deal Roadshow (June 2009)
30 slides from Pacific Gas & Electric's roadshow presentation, Jun 24, 2009
Slide 1: European Investor Meetings
European Investor Meetings June 25 - July 2, 2009 Exhibit
Slide 2: 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 3: PG&E Service Area in California
PG&E SERVICE AREA IN CALIFORNIA Pacific Gas and Electric Company (PG&E)
Slide 4: 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 rate base (2008 wtd. avg.) Reg
Slide 5: 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) • Cost of service ratemaking • Revenues vary with system load Midway
Slide 6: 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.) Regulation • California s
Slide 7: Electric 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 8: Our Vision, Goals, Strategies and Values
OUR VISION The leading utility in the United States QUR GOALS Delighted Customers Energized Employees Rewarded Shareholders Environmental Leadership. OUR STRATEGIES Customer Focus Operational Excellence *We act with integrity and communicate honestly OUR VALUES and openly * We are passionate about m
Slide 9: Business Priorities
Business Priorities • Drive customer satisfaction • Deliver on budget, on plan, and on purpose • Improve reliability • Improve safety and human performance • Champion effective regulatory and legislative policies
Slide 10: Financial Strategy
PG&E Financial Strategy • Achieve solid, sustained EPS growth • Actively manage cash flow • Maintain opportunistic financing approach
Slide 11: Capital Expenditure Outlook
Capital Expenditure Outlook Low Case $3.6B Low Case $3.6B High Case $3.7B High Case $3.7B Low Case $3.4B Low Case $3.4B High Case $3.8B High Case $3.8B Low Case $3.3B Low Case $3.3B High Case $4.8B High Case $4.8B 2.0 2.5 3.0 3.5 4.0 4.5 5.0 $ B Low Low High High Low Low High High Low Low High High
Slide 12: Rate Base Growth
* Actual 2008 and projected 2009-2011 rate base is not adjusted for the impact of the carrying cost credit that primarily results from the second series of the Energy Recovery Bonds. Earnings will be reduced by an amount equal to the deferred tax balance associated with the Energy Recovery Bonds reg
Slide 13: Residential Electric Bills
Residential Electric Bills (1) Edison Electric Institute, Statistical Yearbook, Year 2007 (latest data available).
Slide 14: Earnings per Share from Operations
$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 $3.50 $3.35 $3.25 $3.15 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 available in Appendi
Slide 15: Additional Capital Opportunities
Generation • Additional renewable generation investment opportunities • Prior RFO Shortfalls Electric Transmission & Gas Pipelines • Additional transmission to reach renewable generation • B.C. Transmission Line • Pacific Connector Gas Pipeline Additional Capital Opportunities
Slide 16: 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 17: Dividend Policy
• Sustainable, comparable dividend • Payout ratio range of 50% - 70% • Dividend growth in line with EPS growth. Dividend Policy Historical Quarterly Dividends per Share
Slide 18: Investment in Infrastructure
• Infrastructure spend categories: • Substations • Poles and Maintenance • New Customer Connects • Capacity and Reliability • Transmission spend categories • System Expansion / Congestion Relief • Maintenance and Replacement • Automation Technology Expansion • New Generation Interconnection Investme
Slide 19: SmartMeter Installations
SmartMeter TM Installations Cumulative Meters Installed Cumulative Meters Installed 1.7 million 1.7 million 1,656 1,656 273,000 273,000 PLAN 4.5 million 4.5 million
Slide 20: New Generation Investment
New Generation Investment Humboldt Bay Power Plant * Colusa Generating Station * * Humboldt Bay is a 163 MW plant currently under construction. Projected Cost: $239M, scheduled completion 2010. * Colusa is a 657 MW plant currently under construction. Projected Cost: $673M, scheduled completion 2010.
Slide 21: 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
Slide 22: RPS Strategy
RPS Strategy • Expect 14% deliveries from renewable resources in 2009 • Contracted/Current deliveries represent over 20% of projected load for • Utility Owned PV is a contributor to achieving RPS goals
Slide 23: PCG: Outlook for the Future
PCG: Outlook for the Future Leading renewable and energy efficiency programs… … and limiting risk from new carbon legislation … and limiting risk from new carbon legislation
Slide 24: Forward-looking statements
This presentation contains management’s guidance for PG&E Corporation’s 2009, 2010 and 2011 earnings per share from operations, projections of Pacific Gas and Electric Company’s (Utility) capital expenditures, rate base and rate base growth, and projections of PG&E Corporation’s and the Utility’s fi
Slide 25: Appendix
Appendix
Slide 26: Key Regulatory Filings
2009 2010 2011 2009 2010 2010 2011 Key Regulatory Filings General Rate Case Summer 2009: Prepare and File Notice of Intent Summer 2009: Prepare and File Notice of Intent Summer 2010: Hearings January 2011: Rates go into effect Transmission Owner Rate Cases Summer 2009: File TO 12 Summer 2009: File T
Slide 27: Existing Resource Mix
Owned Generation Type Net Capacity (MW) Diablo Canyon Nuclear 2,240 Hydroelectric Facilities Hydro 3,896 Humboldt Fossil 135 Total 6,271 Utility Owned 30% Other Power Purchases 35% total sources of electric energy* Existing Resource Mix * Approximately 12% of total retail sales are supplied by eligi
Slide 28: Renewable contracts signed
Year Signed Project Max GWh/yr Technology 2006 HFI Silvan 142 Biomass 2006 Liberty Biofuels 70 Biofuels 2006 Bottle Rock USRG 385 Geothermal 2006 IAE Truckhaven 366 Geothermal 2006 Global Common - Chowchilla 72 Biomass 2006 Global Common - El Nido 72 Biomass 2006 Newberry 840 Geothermal 2006 Calpine
Slide 29: 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 * 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
Slide 30: 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 operations. (2) Items impacting compara