Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Non-Deal Roadshow (June 2010)
27 slides from Pacific Gas & Electric's roadshow presentation, Jun 24, 2010
Slide 1: PG&E Corporation Investor Meetings
PG&E Corporation p Investor Meetings June 24 – July 2, 2010 ®
Slide 2: Table of Contents
Table of Contents Overview Page 3 Regulatory Update Page 6 Appendix Page 15 2
Slide 3: Pacific Gas and Electric Company (PG&E)
Pacific Gas and Electric Company (PG&E) • Provides energy to approximately 15 million people • 70,000 square-mile service territory • Four main operational units: Electric and gas distribution Electric transmission Natural gas transmission PG&E SERVICE AREA IN CALIFORNIA Electric procurement and own
Slide 4: PCG Investment Case
PCG Investment Case Excellent service at reasonable cost Constructive regulatory environment Investment in infrastructure- providing solid, regulated growth Clean generation and world-class energy efficiency programs Stable capital structure and return Reliable, growing dividend 4
Slide 5: Dividend Policy
Dividend Policy Sustainable comparable dividend Sustainable, Payout ratio range of 50% - 70% Dividend growth in line with EPS growth $1.80 Annualized Dividends per Share 70.0% $1.68 $ $1 70 $1.70 $1.60 $1.56 65.0% $1.50 $1.44 $1.40 $ 60.0% % $1 32 $1.32 $1.30 $1.23 $1.20 55.0% $1.10 $1.00 50.0% 2005
Slide 6: Regulatory Update
Regulatory Update ®
Slide 7: 2011 General Rate Case
2011 General Rate Case Sets revenue requirements for Gas and Electric Distribution and Electric Generation businesses for 2011 – 2013 Revenue Requirement Request: $6.7B $1.1B increase $2.7B average capital expenditures per year Allows for necessary investments in energy infrastructure to deliver ene
Slide 8: 2011 General Rate Case
2011 General Rate Case Also requested a flexible attrition mechanism to adjust for: • Labor costs • Materials and services • Capital p investments • Changes in franchise, payroll or other taxes Based on the requested mechanism, attrition revenues are currently forecasted to be $275M and $343M in 201
Slide 9: 2011 Gas Transmission and Storage Rate Case
2011 Gas Transmission and Storage Rate Case Sets revenue requirements, rates, terms and conditions for PG&E’s Gas Transmission and Storage services for 2011 – 2014 Revenue Requirement q Request: q $529M $ $67M increase over 2010 revenue requirement $235M Capital Expenditures Allows for All f upgrade
Slide 10: FERC TO12 Filing
FERC TO12 Filing Sets revenue requirements for PG&E’s Electric Transmission business in 2010-2011 Original Revenue Requirement Request: $946M $800M Capital Expenditures Revenue Requirement Proposed in All-Party Settlement reached in March 2010: $875M If approved, settlement would provide for additio
Slide 11: Cornerstone Improvement Program
Cornerstone Improvement Program Request for revenue requirements aimed at improving the reliability of PG&E’s electric distribution system ocuses o Focuses on improving p o g reliability, e ab ty, while e 2011 0 G GRC C maintains a ta s current reliability levels Request: $2.0 billion capital spend
Slide 12: Manzana Wind Project
Manzana Wind Project Request for revenue requirements to acquire, own, and operate the 189 - 246MW Manzana wind project in the Tehachapi region of Southern California Request: $900M (all capital) at 246MW capacity Manzana Wind Project would be designed, developed, and constructed d by b Iberdrola Ib
Slide 13: Recent Decisions: Solar PV Program
Recent Decisions Solar PV Program Sets revenue requirements q to develop p and own up p to 250MW of PV and sign PPAs for an additional 250MW of PV over a five year period Final Decision (4/22/10) approved: • $1.45B (all capital) for the Utility-owned 250MW • Authorized cost of service ratemaking tre
Slide 14: Recent Decisions: Summer Rate Relief Program
Recent Decisions Summer Rate Relief Program As proposed by PG&E, the CPUC approved reducing overall rates by $400M, a 3% decrease, effective June 1, 2010 Collapsed Tiers 4 and 5 into one tier • Substantially reducing rates in Tier 5 by 19.6% and Tier 4 by 5.8% • Moderately increasing rates in Tier 3
Slide 15: Appendix
Appendix ®
Slide 16: 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 centers, meter reading reading, billing) • 5.1 million electric and 4.3 million gas customer accounts Primary Assets • $
Slide 17: Electric Transmission
Electric Transmission Business Scope • Wholesale electric transmission services (construction, maintenance) • Operation by CA Independent System Operator Primary Assets • $3.1 billion of rate base (2009 wtd. avg.) R Regulation l ti Malin • Federal regulation (FERC) Round Mt • Cost of service ratemak
Slide 18: 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 businesses, customers, California electric generators Primary Assets • $1.5 billion of rate b
Slide 19: Electric Procurement & Owned Generation
Electric Procurement & Owned Generation Business Scope • Electricity and ancillary services from owned and controlled resources • Energy procurement program Primary Assets • $2.8 billion of rate base (2009 wtd. avg.) • Diablo Canyon Nuclear Power Plant (2 (2,240 240 MW) • Gateway Generating Station
Slide 20: PG&E Generation in California
PG&E Generation in California Humboldt Generating Station Conventional Hydroelectric facilities (in construction) Colusa Generating Station (in constr construction) ction) Gateway Generating Station Helms Pumped Storage Diablo Canyon Power Plant 20
Slide 21: 2009 Customer Profiles - % of Sales
2009 Customer Profiles - % of Sales Electric Customers Gas Customers (85,629 GWh delivered) (822 Bcf delivered) Agricultural & Other Residential 8% Residential Industrial 24% 36% 17% Commercial 7% Commercial Industrial 39% 69% 21
Slide 22: Existing Resource Mix
Existing Resource Mix N tC Net Capacity it Owned Generation Type Status (MW) Hydroelectric Facilities (total) Hydroelectric Power Houses On-line 3,896 Diablo Canyon Nuclear Reactors On-line 2,240 Gateway Generating Station Gas Combined Cycle Generators On-line 530 Humboldt Bay Power Plant Fossil Fir
Slide 23: RPS Contracts Signed Since 2002
RPS Contracts Signed Since 2002 O Over 8,000 8 000 MW iin RPS C Contracts t t Bioenergy 3.3% Geothermal 6.1% Wind Small Hydro 32.6% 0.6% Solar PV 26.2% Solar Thermal 31.2% 23
Slide 24: Energy Efficiency Programs
Energy Efficiency Programs World Class Programs $1.3B program budget (2010-2012) 126 P Programs ffor C Customers t Partnership with Governments $75 MM in incentive awards in 2008-09 National Recognition EnergySTAR Sustained Excellence Award Platts Energy Efficiency Initiative of the Year EEI Nationa
Slide 25: Greenhouse Gas Emissions
Greenhouse Gas Emissions Benchmarking Greenhouse Gas Total 2008 Greenhouse Gas Emissions by Emissions for f Delivered Electricity S Source C Category t (Pounds of CO2 per MWh) (Total 27.1 million metric tons CO2-e (2)) Gas Compressor Process and Stations Transportation U.S. Average (1) 1,329 Fugitiv
Slide 26: Key Regulatory Proceedings
Key Regulatory Proceedings Regulatory Case Docket # Expected Decision Date Nuclear Relicensing A.10-01-022 TBD 2011 General Rate Case (“GRC”) A.09-12-020 Final decision is requested in Q4 2010 SmartGrid Compressed Energy Storage A 09-09-019 A.09 09 019 Final decision approving PG&E's PG&E s request
Slide 27: Cost of Capital
Cost of Capital 52% Equity q y Level · 11.35% ROE · Adjustment j Mechanism • Decided separately from General Rate Case • Current terms in place until 2013 Mechanism • Triggers change to ROE if average Moody’s Utility (A or Baa) bond yield index over a 12 month p period moves up p or down by y 100 ba