Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Lehman Brothers CEO Energy/Power Conference 2004
13 slides from Pacific Gas & Electric's conference presentation, Sep 7, 2004
Slide 1: Delivering Value
Delivering Value Peter A. Darbee Senior Vice President & CFO Lehman Brothers CEO Energy/Power Conference Waldorf=Astoria September 7, 2004
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements regarding estimated earnings for 2005, anticipated cash flows in 2005, and management’s projected uses of cash in 2005 including the anticipated payment of dividends and targeted stock re
Slide 3: New Business Environment
New Business Environment • Reorganization structure with supporting safeguards • Multi-year rate agreements with annual revenue adjustments • Collective bargaining agreement with all unions through 2007 • Constructive regulatory backdrop • Variety of Utility investment opportunities to drive growth
Slide 4: Financial Restoration
Financial Restoration • Rate Base in 2004: Approximately $17 billion – Authorized 11.22% ROE on average 49% equity ratio • Rate Base in 2005 assumes securitization – $1.8 billion in Energy Recovery Bonds (ERB) replace the Reg Asset, reducing the rate base to $15 billion – $1.1 billion of proceeds re
Slide 5: Distributing Value to Shareholders
Distributing Value to Shareholders $1.55 Billion in dividends and share repurchases in 2005 Holding Company Sources and Uses ($ Millions) Sources Uses Cash at June 30, 2004 $ 1,220 Senior Secured Notes $ 650 Estimated Distributions from Utility 1,200 NEGT Settlement Fee 30 NEGT Taxes 100 Dividends a
Slide 6: Earnings Guidance for 2004 and 2005
Earnings Guidance for 2004 and 2005* • 2004 EPS from operations: $2.00 - $2.10 • 2005 EPS from operations: $2.15 - $2.25 *Reconciliation of Non-GAAP to GAAP earnings guidance can be found in appendix to this presentation 6
Slide 7: Our Focus: Customers, Operations, Employees
Our Focus: Customers, Operations, Employees • Continually evaluating opportunities to improve operational efficiency and cost effectiveness • New business environment presents opportunity for renewed vigor and effectiveness • Customers, shareholders and employees benefit from developing better ways
Slide 8: California Energy Outlook
California Energy Outlook Total PG&E Projected Energy Usage (GWH) 94,000 90,000 86,000 82,000 78,000 74,000 70,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SOURCE: Pacific Gas & Electric Company Long-Term Plan filed July 9, 2004 with the California Public Utilities Commission, Rulemaking No
Slide 9: California Energy Outlook - Two Key Issues
California Energy Outlook - Two Key Issues • Resource Adequacy – We propose that all Load Serving Entities (LSE) be required to plan for their customers power needs – We propose specific rules for building and owning power plants • Retail Customer Choice – PG&E continues to support customer choice –
Slide 10: Summary
Summary • Better customer care • Strengthen relationship with our customers and regulators • Great opportunities and cash flow to fund investments for growth in the Utility 10
Slide 11: PG&E Corporation
Wl PG&E Corporation
Slide 12: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Reconciliation of Guidance for Earnings from Operations for 2004 Year Ended December 31, 2004 (1) Earnings from Operations EPS Guidance $ 2.00 $ 2.10 Estimated Items Impacting Comparability(2) Incremental interest expense (0.20) (0.14) Utility Chapter 11 Set
Slide 13: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Reconciliation of Guidance for Earnings from Operations for 2005 Year Ended December 31, 2005 Earnings from Operations EPS Guidance $ 2.15 $ 2.25 Estimated Items Impacting Comparability(1) Incremental interest expense (0.05) (0.04) Costs to retire, renegotia
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