Slide 1: Investor Meetings
PG&E Corporation p Investor Meetings June 7-8, 2010 ®
Slide 2: Table of Contents
Table of Contents Overview Page 3 Regulatory Update Page 5 Recent Decisions Page 12 Appendix Page 14 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 Electric generation IN CALIFORNIA 3
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 Cl ti andd world-class ld l energy efficiency programs Stable capital structure and return Reliable, growing dividend 4
Slide 5: Regulatory Update
Regulatory Update ®
Slide 6: 2011 General Rate Case
2011 General Rate Case Sets S t revenue requirements i t for f Gas G and d Electric El t i Distribution Di t ib ti and Electric Generation businesses for 2011 – 2013 Revenue Requirement q Request: q $6.7B $1.1B increase $2.7B average capital expenditures per year Allows for necessary investments in
Slide 7: 2011 General Rate Case
2011 General Rate Case Also requested a flexible attrition mechanism to adjust for: • llabor b costs t [adjustments] [ dj t t ] • materials and services [adjustments] • capital investments [related adjustments] • [other adjustments, such as] changes in franchise, payroll or other taxes Based on the
Slide 8: 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 Request: $529M $67M increase over 2010 revenue requirement $235M Capital Expenditures Allows for upgrades to backbon
Slide 9: FERC TO12 Filing
FERC TO12 Filing Sets revenue requirements for PG&E’s Electric Transmission business in 2010-2011 2010 2011 Original Revenue Requirement Request: $946M $800M Capital Expenditures Revenue Requirement Proposed in All-Party Settlement reached in March 2010: $875M Adds additional transmission capacity a
Slide 10: Cornerstone Improvement Program
Cornerstone Improvement Program Request q for revenue requirements q aimed at improving p g the reliability of PG&E’s electric distribution system Request: $2.0 billion capital spend over 6 years Proposed Decision: $357M capital spend through 2013 with opportunity for additional reliability investme
Slide 11: Manzana Wind Project
M Manzana Wi d P Wind Project j t Request q for revenue requirements q to acquire, q own, and operate p 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 developed, designed and construct
Slide 12: Recent Decisions: Solar PV Program
Recent Decisions Solar PV Program g Sets revenue requirements to develop and own up 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 treatment
Slide 13: 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 $400M, a 3% decrease decrease, effective June 1 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 increasin
Slide 14: Appendix
Appendix ®
Slide 15: 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 16: 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 17: 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 18: 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 (2,240 MW) • Gateway Generating Station (530 MW
Slide 19: 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 19
Slide 20: Key Regulatory Proceedings
Key Regulatory Proceedings Regulatory Case Docket # Expected Decision Date 2010 Long Term Procurement Plan R.10-05-006 TBD Nuclear Relicensing A.10-01-022 TBD 2011 General Rate Case (“GRC”) A.09-12-020 Final decision is expected in Q4 2010 2011 GRC Phase II A.10-03-014 Final decision is expected in
Slide 21: 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