Slide 1: PG&E Corporation First Quarter Earnings Call
PG&E Corporation First Quarter Earnings Call • • May 2, 2013 This presentation is not complete without the accompanying statements made by management during the webcast conference call held on May 2, 2013. This presentation, including Exhibits, and the accompanying press release, were attached to PG
Slide 2: Key Focus Areas
Key Focus Areas Position company Resolve gas issues Partner effectively for success • Execute critical gas • Rigorous multi-year • Strengthen local work planning presence • Complete regulatory • Drive continuous • Engage in public proceedings as soon as improvement policy possible development 2
Slide 3: Regulatory and Operational Updates
Regulatory and Operational Updates • Gas investigations – Fine and remedy recommendations expected May 6 Regulatory • Cost of capital – Adjustment mechanism in place through 2015 Update • Oakley plant – CPUC denied requests for rehearing • General Rate Case – DRA testimony expected May 3 Gas Progres
Slide 4: Q1 2013: Earnings Results
Q1 2013: Earnings Results Earnings (millions) EPS Earnings from Operations $ 276 $ 0.63 Items Impacting Comparability Natural Gas Matters (37) (0.08) Environmental-Related Costs - - Earnings on a GAAP Basis $ 239 $ 0.55 Natural Gas Matters (millions, pre-tax) Q1 Pipeline-related costs $ (62) Penalti
Slide 5: Q1 2013: Q over Q Comparison
Q1 2013: Q over Q Comparison EPS from Operations (1) (1) Other reflects lower gas transmission revenues, financing and depreciation costs for capital spending in excess of authorized levels, higher below- the-line costs, and miscellaneous other items. See Exhibit B for additional detail. EPS from Op
Slide 6: 2013 EPS Guidance
2013 EPS Guidance Low High EPS from Operations $ 2.55 $ 2.75 Estimated Items Impacting Comparability Natural Gas Matters (0.85) (0.53) Environmental-Related Costs (0.04) 0.00 Estimated EPS on a GAAP Basis $ 1.66 $ 2.22 Natural Gas Matters (1) (millions, pre-tax) Low guidance High guidance range rang
Slide 7: Appendix
Appendix Appendix
Slide 8: Table of Contents
Table of Contents Appendix 1 – Safe Harbor Statement and Regulatory and Guidance Matters Exhibit 1: Safe Harbor Statement page 10 Exhibit 2: Gas Regulatory Proceedings Calendar page 11 Exhibit 3: Assumptions for 2013 Guidance page 12 Exhibit 4: Earnings from Ops Comparison page 13 Exhibit 5: 2013 Na
Slide 9: Appendix 1
Appendix Appendix 1
Slide 10: Safe Harbor Statement
Exhibit 1: Safe Harbor Statement Management's statements regarding guidance for PG&E Corporation’s future financial results and earnings from operations per common share, general earnings sensitivities, and the underlying assumptions about the future levels of capital expenditures, rate base, costs,
Slide 11: Gas Regulatory Proceedings Calendar
Exhibit 2: Gas Regulatory Proceedings Calendar 1/28: Intervenor requests for Gas Pipeline rehearing of PSEP decision 2/21: Replies on requests for rehearing Safety OIR R. 11-02-019 6/5: Rebuttal briefs 5/6: Briefs on fines on fines & remedies 2/8: CPSD rebuttal testimony 1/11: PG&E financial & remed
Slide 12: Assumptions for 2013 Guidance
Exhibit 3: Assumptions for 2013 Guidance Capital Expenditures Forecast Authorized Rate Base (weighted average) ($ millions) ($ billions) 2013 2013 Electric Distribution 1,850 Electric Distribution 11.9 Electric Transmission 850 Electric Transmission* 4.5 Gas Transmission 350 Gas Transmission 1.8 Gas
Slide 13: Earnings from Ops Comparison
Exhibit 4: Earnings from Ops Comparison 2012 EPS from Operations 2013 EPS from Operations $3.22 - ROE reductions - Higher shares - CWIP earnings 100% offset by below-the-line costs $2.55 - 2.75 - Capital expenditures exceeding authorized + Rate base growth Earnings from Operations is not calculated
Slide 14: 2013 Natural Gas Matters
Exhibit 5: 2013 Natural Gas Matters ($ millions) 2013 Unrecovered PSEP Expense(1) 150 - 200 Emerging Work(2) 175 - 225 Rights of Way Encroachment Integrity Management and Other Work Legal and other costs 50 - 100 Pipeline Related Costs 400 - 500* * Total does not equal the sum of the components Timi
Slide 15: 2013 Equity Issuance
Exhibit 6: 2013 Equity Issuance 2012 2013(1) $1B - 1.2B + Lower earnings from operations + Higher capital expenditures + Q4 2012 PSEP capital charge ~$775M (1) The guidance range for 2013 does not include potential penalties (other than those already accrued). See Exhibit 1 for factors that could ca
Slide 16: Looking Ahead: Capital Expenditures
Exhibit 7: Looking Ahead: Capital Expenditures Capital Expenditures 2014 - 2016 $4.5B - 6B $4.5B - 6B $4.5B - 5.5B 2014 2015 2016* The high end of the range reflects capex at GRC request levels, including attrition amounts for 2015 and 2016, and current views of other future gas and electric proceed
Slide 17: Looking Ahead: Rate Base Growth
Exhibit 8: Looking Ahead: Rate Base Growth Rate Base Growth 2014 - 2016 $32B - 35B $28.5B - 29B CAGR*: 6 – 10% 2014 2016* The high end of the range reflects capex at GRC request levels, including attrition amounts for 2015 and 2016, and current views of other future gas and electric proceedings. The
Slide 18: Looking Ahead: Natural Gas Matters
Exhibit 9: Looking Ahead: Natural Gas Matters Pipeline Related Costs 2014 Unrecovered costs continue PSEP Costs 2015 Future pipeline safety work incorporated in next Gas Transmission rate case Emerging Work Right of Way Encroachment 2013-2017 Roughly $500 million of unrecovered costs 2014 Unrecovere
Slide 19: Appendix 2
Appendix Appendix 2
Slide 20: Reconciliation of Earnings from Operations to Consolidated Income
Exhibit A: Reconciliation of PG&E Corporation Earnings from Operations to Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) First Quarter, 2013 vs. 2012 (in millions, except per share amounts) Three Months Ended March 31, Earni
Slide 21: Key Drivers of EPS from Operations
Exhibit B: Key Drivers of PG&E Corporation Earnings per Common Share (“EPS”) from Operations First Quarter, 2013 vs. 2012 ($/Share, Diluted) (1) First Quarter 2012 EPS from Operations $ 0.89 Growth in rate base earnings 0.05 Reduction in authorized cost of capital (0.10) Nuclear refueling outage (0.
Slide 22: Operational Performance Metrics
Exhibit C: Operational Performance Metrics First Quarter 2013 Performance 2013 Performance Results Q1 YTD EOY Meets YTD Actual Target Target (1) Safety (includes both public and employee safety metrics) Nuclear Operations Safety Institute of Nuclear Power Operations (INPO) Performance 1st Quartile 1
Slide 23: Definitions of Operational Performance Metrics
Definitions of 2013 Operational Performance Metrics from Exhibit C The Operational Performance Metrics focus on three areas: safety (public and employee), customer service, and financial performance. The column titled “Meets YTD Target” shows illustratively whether or not the metric has met the year
Slide 24: Sales and Sources Summary
Exhibit D: Pacific Gas and Electric Company Sales and Sources Summary First Quarter, 2013 vs. 2012 Three Months Ended March 31, 2013 2012 Sales from Energy Deliveries (in millions kWh) 20,326 20,330 Total Electric Customers at March 31 5,235,631 5,205,107 Total Gas Sales (in millions MCF) 266 261 To
Slide 25: PG&E Corporation EPS Guidance
Exhibit E: PG&E Corporation EPS Guidance 2013 EPS Guidance Low High Estimated EPS on an Earnings from Operations Basis $ 2.55 $ 2.75 Estimated Items Impacting Comparability (1) Natural gas matters (2) (0.85) (0.53) Environmental-related costs (3) (0.04) 0.00 Estimated EPS on a GAAP Basis $ 1.66 $ 2.
Slide 26: General Earnings Sensitivities
Exhibit F: General Earnings Sensitivities PG&E Corporation and Pacific Gas and Electric Company Estimated 2013 Variable Description of Change Earnings Impact Rate base +/- $100 million change in allowed rate base +/- $5 million Return on equity (ROE) +/- 0.1% change in allowed ROE +/- $14 million Sh
Slide 27: Summary of Selected Regulatory Cases
Exhibit G: Pacific Gas and Electric Company Summary of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2014 General Rate Case A.12-11-009 Nov 15, 2012 – Application filed (Phase I) Apr 18, 2013 – Phase II filed May 3, 2013 – DRA testimony May 17, 2013 – Intervenor testimony and Safety a
Slide 28: Summary of Selected Regulatory Cases (continued)
Exhibit G: Pacific Gas and Electric Company Summary of Selected Regulatory Cases (continued) Regulatory Case Docket # Key Dates Oakley Generating Station A.09-09-021 Dec 20, 2012 – Final decision approving Oakley D.10-07-045 Jan 28, 2013 – Intervenor requests for rehearing D.10-12-050 Feb 12, 2013 –