Slide 1: PG&E Corporation First Quarter Earnings Call
1 PG&E Corporation First Quarter Earnings Call May 2, 2012 This presentation is not complete without the accompanying statements made by management during the webcast conference call held on May 2, 2012. This presentation, including Exhibits, and the accompanying press release, were attached to PG&E
Slide 2: Key Focus Areas
Key Focus Areas Position company Rebuild relationships with Resolve gas issues for success key stakeholders • Move forward with • Conduct rigorous • Provide excellent gas work planned in benchmarking service 2012 • Build culture of • Meet commitments • Work to resolve continuous to customers and reg
Slide 3: Regulatory and Operational Updates
Regulatory and Operational Updates • PSEP and 3 investigations move forward Regulatory • Filed cost of capital proposal Developments Requested 52% equity ratio, 11% ROE, and continuation of automatic adjustment mechanism • GRC Notice of Intent will be filed in summer 2012 • Pipeline work completed
Slide 4: 1Q 2012 Earnings Results
1Q 2012 Earnings Results Earnings (millions) EPS Earnings from Operations $ 372 $ 0.89 Items Impacting Comparability Natural Gas Matters (97) (0.23) Environmental-Related Costs (42) (0.10) Earnings on a GAAP Basis $ 233 $ 0.56 Natural Gas Matters (millions, pre-tax) Pipeline-related costs $ (104) Pe
Slide 5: 1Q 2012 Q over Q Comparison
1Q 2012 Q over Q Comparison $1.20 $0.07 $1.00 $0.05 $0.02 $0.05 $(0.06) $0.07 $(0.03) $0.80 $0.14 $0.60 $0.40 $0.58 $0.89 $0.20 $0.00 1Q 2011 EPS Timing of rate Storm and Litigation and Increase in rate Gas Miscellaneous* Planned Increase in 1Q 2012 EPS from case decisions outage regulatory base ear
Slide 6: 2012 EPS Guidance
2012 EPS Guidance Low High EPS from Operations $ 3.10 $ 3.30 Estimated Items Impacting Comparability Natural Gas Matters (1.16) (0.71) Environmental-Related Costs (0.14) (0.10) Estimated EPS on a GAAP Basis $ 1.80 $ 2.49 Natural Gas Matters (millions, pre-tax) Low guidance High guidance range range
Slide 7: 2012 Equity Issuance
2012 Equity Issuance ($ millions) Previous Estimate Current Estimate Remaining Equity Q1 2012 – Q4 2012 Q1 2012 – Q4 2012* Need 2012* $800 $700 ~$100 $600 $500 + San Bruno ~$400 Contribution $400 ~$700 $300 ~$600 $200 - Q1 2012 Issuance ~$300 $100 $0 *Based on current guidance assumptions See Exhibi
Slide 8: Appendix
8 Appendix
Slide 9: Table of Contents
Table of Contents Exhibit 1: Safe Harbor Statement Page 10-11 Exhibit 2: Regulatory Calendar Page 12 Exhibit 3: Assumptions for 2012 Guidance Page 13 Exhibit 4: Reconciliation of PG&E Corporation Earnings from Operations Page 14 to Consolidated Income Available for Common Shareholders in Accordance
Slide 10: Exhibit 1: Safe Harbor Statement
Exhibit 1: Safe Harbor Statement Management's statements regarding guidance for earnings from operations per common share for PG&E Corporation (Exhibit 9) and general earnings sensitivities (Exhibit 10) constitute forward-looking statements that are based on current expectations and various assumpti
Slide 11: Exhibit 1: Safe Harbor Statement (continued)
Exhibit 1: Safe Harbor Statement (continued) •the occurrence of unplanned outages at the Utility’s generation facilities and the ability of the Utility to procure replacement electricity if certain generation facilities were unavailable; •the results of seismic studies the Utility is conducting that
Slide 12: Exhibit 2: Regulatory Calendar
Exhibit 2: Regulatory Calendar 3/19-3/29: Hearings 5/14: Opening 8/6: Proposed 9/6: Final Gas Pipeline Briefs Decision Decision Safety OIR R. 11-02-019 2/28: PG&E Rebuttal Testimony 5/31: Reply Briefs Dec/Jan: Presiding Officer’s Decision 3/20: Prehearing 4/30: Intervenor On or Before 8/27: 9/5-9/19
Slide 13: Assumptions for 2012 Guidance
Exhibit 3: Assumptions for 2012 Guidance Additional Expenses Capital Expenditures Forecast ($ millions) ($ millions) ~$200 planned incremental spend* ~$4,600 - $4,800 Authorized Rate Base Cost of Capital (weighted average) ($ billions) 28.0 Authorized ROE: 11.35% 26.0 ~$1.6 24.0 22.0 Forecast CWIP E
Slide 14: Reconciliation of PG&E Corporation Earnings from Operations to GAAP
Exhibit 4: Reconciliation of PG&E Corporation Earnings from Operations to Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Account Principles (“GAAP”) First Quarter, 2012 vs. 2011 (in millions, except per share amounts) Three months ended March 31, Earnings
Slide 15: Reconciliation of Pacific Gas and Electric Company Earnings from Operations to GAAP
Exhibit 5: Reconciliation of Pacific Gas and Electric Company Earnings from Operations to Consolidated Income Available for Common Stock in Accordance with GAAP First Quarter, 2012 vs. 2011 (in millions) Three months ended March 31, 2012 2011 Pacific Gas and Electric Company Earnings from Operations
Slide 16: Key Drivers of PG&E Corporation Earnings per Common Share
Exhibit 6: Key Drivers of PG&E Corporation Earnings per Common Share (“EPS”) from Operations First Quarter 2012 vs. 2011 ($/Share, Diluted) First Quarter 2011 EPS from Operations (1) $ 0.58 Timing of rate case decisions in 2011 0.14 Storm and outage expenses 0.07 Litigation and regulatory matters 0.
Slide 17: Exhibit 7: Operational Performance Metrics
Exhibit 7: Operational Performance Metrics First Quarter 2012 Performance Meets YTD Target Safety (includes both public and employee safety metrics) Nuclear Operations Leak Repair Performance Gas Emergency Response Transmission & Distribution Wires Down (unplanned outages) - Electric Emergency
Slide 18: Definitions of 2012 Operational Performance Metrics from Exhibit 7
Definitions of 2012 Operational Performance Metrics from Exhibit 7 Safety Public safety metrics focus on Utility operations in three areas: 1. The safety of the Utility’s nuclear power operations is represented by 12 performance indicators for nuclear power generation reported to the Institute of Nu
Slide 19: Pacific Gas and Electric Company Sales and Sources Summary
Exhibit 8: Pacific Gas and Electric Company Sales and Sources Summary First Quarter, 2012 vs. 2011 Three Months Ended March 31, 2012 2011 Sales from Energy Deliveries (in millions kWh) 20,330 19,691 Total Electric Customers at March 31 5,205,107 5,181,399 Total Gas Sales (in millions MCF) 261 233 To
Slide 20: PG&E Corporation EPS Guidance
Exhibit 9: PG&E Corporation EPS Guidance 2012 EPS Guidance Low High Estimated EPS on an Earnings from Operations Basis $ 3.10 $ 3.30 Estimated Items Impacting Comparability (1) Natural gas matters (2) (1.16) (0.71) Environmental-related costs (3) (0.14) (0.10) Estimated EPS on a GAAP Basis $ 1.80 $
Slide 21: General Earnings Sensitivities
Exhibit 10: General Earnings Sensitivities PG&E Corporation and Pacific Gas and Electric Company Estimated 2012 Variable Description of Change Earnings Impact Rate base +/- $100 million change in allowed rate base +/- $6 million Return on equity (ROE) +/- 0.1% change in allowed ROE +/- $12 million S
Slide 22: Pacific Gas and Electric Company Summary of Selected Regulatory Cases
Exhibit 11: Pacific Gas and Electric Company Summary of Selected Regulatory Cases Regulatory Case Docket # Key Dates Gas Pipeline Safety Order Instituting Rulemaking R.11-02-019 Jan. 31, 2012 – Intervenor testimony D.11-03-047 Feb. 28, 2012 – PG&E rebuttal testimony D.11-06-017 Mar. 19-29, 2012 – Ev
Slide 23: Summary of Selected Regulatory Cases (continued)
Exhibit 11: Pacific Gas and Electric Company Summary of Selected Regulatory Cases (continued) Regulatory Case Docket # Key Dates Request for New Generation Offers and Potential New Utility-Owned A.09-09-021 Jun. 17, 2011 – Communities for a Better Environment petitioned for California Supreme Court